Federal Register Vol. 81, No.127,

Federal Register Volume 81, Issue 127 (July 1, 2016)

Page Range42983-43461
FR Document

81_FR_127
Current View
Page and SubjectPDF
81 FR 43101 - Engine-Testing Procedures; CFR CorrectionPDF
81 FR 43197 - Agency Information Collection Activities; Submission to OMB for Review and Approval; Comment Request; Pesticide Establishment Application, Notification of Registration and Pesticide Production Report for Pesticide-Producing and Device-Producing EstablishmentsPDF
81 FR 43197 - Agency Information Collection Activities; Information Collection Request Submitted to OMB for Review and Approval; Comment Request; Application for New and Amended Pesticide RegistrationPDF
81 FR 43198 - Notice of Open Meeting of the Environmental Financial Advisory Board (EFAB)PDF
81 FR 43199 - Information Collection Request Submitted to OMB for Review and Approval; Comment Request; NSPS/NESHAP for Wool Fiberglass Insulation Manufacturing Plants (Renewal)PDF
81 FR 43185 - Initiation of Five-Year (“Sunset”) ReviewPDF
81 FR 43335 - Information Collection; Request for CommentsPDF
81 FR 43297 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of Amendment No. 1, and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To Add a New Discretionary Pegged OrderPDF
81 FR 43306 - Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.24, Retail Price Improvement Program, To Extend the Pilot PeriodPDF
81 FR 43308 - Self-Regulatory Organizations; Chicago Board Options Exchange, Incorporated; Notice of Filing of a Proposed Rule Change To List Options That Overlie the FTSE Developed Europe Index and the FTSE Emerging Index, To Raise the Comprehensive Surveillance Agreement Percentage Applicable to Certain Index Options, and To Amend the Maintenance Listing Criteria Applicable to Certain Index OptionsPDF
81 FR 43320 - Self-Regulatory Organizations; NYSE MKT LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Commentary .02 to NYSE Amex Options Rule 960NY in Order To Extend the Penny Pilot Through December 31, 2016PDF
81 FR 43327 - Self-Regulatory Organizations; The NASDAQ Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Reduce the Fees for Certain Real Estate Investment Trusts Listed on NasdaqPDF
81 FR 43332 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change Amending Commentary .02 to Exchange Rule 6.72 in Order To Extend the Penny Pilot Through December 31, 2016PDF
81 FR 43325 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 7260 by Extending the Penny Pilot Program Through December 31, 2016PDF
81 FR 43322 - Self-Regulatory Organizations; BOX Options Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 7150 (Price Improvement Period (“PIP”)) To Establish the Quality Market Maker Allocation in a PIP OrderPDF
81 FR 43215 - Agency Information Collection Activities: Proposed Collection: Comment RequestPDF
81 FR 43198 - Environmental Impact Statements; Notice of AvailabilityPDF
81 FR 43182 - Notice of Request for Extension of Approval of an Information Collection; Irradiation Phytosanitary Treatment of Imported Fruits and VegetablesPDF
81 FR 43183 - Notice of Request for Revision to and Extension of Approval of an Information Collection; Importation of Fruit From Thailand Into the United StatesPDF
81 FR 43211 - Elemental Impurities in Drug Products; Draft Guidance for Industry; AvailabilityPDF
81 FR 43201 - Information Collection; Commercial Item AcquisitionsPDF
81 FR 43241 - Notice of Receipt of Complaint; Solicitation of Comments Relating to the Public InterestPDF
81 FR 43079 - Special Local Regulations and Safety Zones; Recurring Events Held in the Coast Guard Sector Northern New England Captain of the Port ZonePDF
81 FR 43085 - Safety Zone, Shallowbag Bay; Manteo, NCPDF
81 FR 43210 - Recurrent Herpes Labialis: Developing Drugs for Treatment and Prevention; Draft Guidance for Industry; AvailabilityPDF
81 FR 43262 - Records Schedules; Availability and Request for CommentsPDF
81 FR 43178 - Safety Zone; South Branch of the Chicago River and Chicago Sanitary and Ship Canal, Chicago, ILPDF
81 FR 43192 - Eagle LNG Partners Jacksonville LLC; Application for Long-Term, Multi-Contract Authorization To Export Liquefied Natural Gas to Non-Free Trade Agreement NationsPDF
81 FR 43266 - Final Procedures for Conducting Hearings on Conformance With the Acceptance Criteria in Combined LicensesPDF
81 FR 43219 - Notice of Issuance of Final Determination Concerning Certain Network Cables and TransceiversPDF
81 FR 43190 - Procurement List; Additions and DeletionsPDF
81 FR 43191 - Procurement List; Proposed Additions and DeletionsPDF
81 FR 43089 - Safety Zone; Ohio River Mile 42.5 to 43.0, Chester, West VirginiaPDF
81 FR 43187 - Notice of Intent to Prepare a Joint Environmental Impact Statement for a Programmatic Review of Harvest Actions for Salmon and Steelhead in the Columbia River Basin Related to U.S. v. OregonPDF
81 FR 43334 - Interest RatesPDF
81 FR 43155 - Submission of Food and Drug Administration Import Data in the Automated Commercial EnvironmentPDF
81 FR 43334 - E.O. 13224 Designation of al-Qa'ida in the Indian Subcontinent, Also Known as al-Qaeda in the Indian Subcontinent, Also Known as Qaedat al-Jihad in the Indian Subcontinent as a Specially Designated Global TerroristPDF
81 FR 43228 - Notice of Temporary Closure and Temporary Restrictions of Specific Uses on Public Lands for the Burning Man Event (Permitted Event), Pershing County, NVPDF
81 FR 43334 - Foreign Terrorist Organization Designation of al-Qa'ida in the Indian Subcontinent, Also Known as al-Qaeda in the Indian Subcontinent, Also Known as Qaedat al-Jihad in the Indian Subcontinent as a Specially Designated Global TerroristPDF
81 FR 42983 - Department of Homeland Security and Department of Labor Federal Civil Penalties Inflation Adjustment Act Catch-Up Adjustments for the H-2B Temporary Non-agricultural Worker ProgramPDF
81 FR 43214 - Lists of Designated Primary Medical Care, Mental Health, and Dental Health Professional Shortage AreasPDF
81 FR 43130 - Amendments to Smaller Reporting Company DefinitionPDF
81 FR 42987 - Civil Monetary Penalty Adjustments for InflationPDF
81 FR 43201 - Appraisal Subcommittee Notice of MeetingPDF
81 FR 43254 - Proposed Renewal of the Approval of Information Collection Requirements; Comment RequestPDF
81 FR 43249 - Agency Information Collection Activities; Proposed eCollection; eComments Requested; Approval of a New Collection Assessing Potential Benefits of Accessible Web Content for Individuals Who Are BlindPDF
81 FR 43248 - Agency Information Collection Activities; Proposed eCollection eComments Requested; Application for Explosives License or Permit (ATF F 5400.13/5400.16)PDF
81 FR 43248 - Agency Information Collection Activities; Proposed eCollection eComments Requested; National Response Team Customer Satisfaction SurveyPDF
81 FR 43264 - Freedom of Information Act (FOIA) Advisory Committee; MeetingPDF
81 FR 43188 - Endangered and Threatened Species; Take of Anadromous FishPDF
81 FR 43206 - Early Clinical Trials With Live Biotherapeutic Products: Chemistry, Manufacturing, and Control Information; Guidance for Industry; AvailabilityPDF
81 FR 43209 - Bioequivalence Recommendations for Paliperidone Palmitate; Draft Guidance for Industry; AvailabilityPDF
81 FR 43207 - Erythropoietic Protoporphyria; Scientific WorkshopPDF
81 FR 43212 - Vulvovaginal Candidiasis: Developing Drugs for Treatment; Draft Guidance for Industry; AvailabilityPDF
81 FR 43250 - Notice of Lodging of Proposed Consent Decree Under the Comprehensive Environmental Response, Compensation, and Liability ActPDF
81 FR 43224 - Agency Information Collection Activities: Request for CommentsPDF
81 FR 43190 - North Pacific Fishery Management Council; Public MeetingPDF
81 FR 43221 - Agency Information Collection Activities: Application for Waiver of Grounds of Inadmissibility, Form I-690; Extension, Without Change, of a Currently Approved CollectionPDF
81 FR 43184 - Notice of National Advisory Council on Innovation and Entrepreneurship MeetingPDF
81 FR 43334 - Newvista Property Holdings, LLC-Adverse Abandonment of the Ironton Branch-In Utah County, Utah; Newvista Property Holdings, LLC-Petition For Declaratory OrderPDF
81 FR 43264 - Agency Information Collection Activities: Privacy of Consumer Financial Information Recordkeeping and Disclosure Requirements Under Gramm-Leach-Bliley Act and Regulation P, Comment RequestPDF
81 FR 43293 - Clarification of the Move Update StandardPDF
81 FR 43203 - Proposed Data Collection Submitted for Public Comment and RecommendationsPDF
81 FR 43204 - Proposed Data Collection Submitted for Public Comment and RecommendationsPDF
81 FR 43202 - Agency Forms Undergoing Paperwork Reduction Act ReviewPDF
81 FR 43217 - Submission for OMB Review; 30-Day Comment Request; Population Assessment of Tobacco and Health (PATH) Study-Fourth Wave of Data CollectionPDF
81 FR 43216 - Office of the Director; Notice of Charter RenewalPDF
81 FR 43101 - Inflation Adjustment of the Ordinary Maximum and Aggravated Maximum Civil Monetary Penalties for a Violation of the Hazardous Material Transportation Laws or Regulations, Orders, Special Permits, and Approvals Issued Under Those LawsPDF
81 FR 43105 - Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act for a Violation of a Federal Railroad Safety Law or Federal Railroad Administration Safety Regulation or OrderPDF
81 FR 43294 - Reassignment of Post Office Box Section 98025 to Competitive Fee Group, and of Sections 87325 and 87326 to Market Dominant Fee GroupsPDF
81 FR 43199 - Notice of Issuance of Statement of Federal Financial Accounting Standards 49PDF
81 FR 43185 - Information Systems; Technical Advisory Committee; Notice of Partially Closed MeetingPDF
81 FR 43191 - Proposed Information Collection; Comment RequestPDF
81 FR 43062 - Civil Monetary Penalty Inflation Adjustment-Alcoholic Beverage Labeling ActPDF
81 FR 43085 - Safety Zones; Annual Firework Displays Within the Captain of the Port, Puget Sound Zone-July 2016PDF
81 FR 43243 - Certain Magnetic Data Storage Tapes and Cartridges Containing the Same Institution of InvestigationPDF
81 FR 43115 - Importation of Bone-In Ovine Meat From UruguayPDF
81 FR 43244 - Certain Inkjet Printers, Printheads, and Ink Cartridges, Components Thereof, and Products Containing Same; Institution of InvestigationPDF
81 FR 43031 - Implementation of the Program Fraud Civil Remedies Act of 1986PDF
81 FR 43028 - Rules of Practice and Procedure; Civil Money Penalty Inflation AdjustmentPDF
81 FR 43097 - 2-propenoic acid, 2-methyl-, 2-oxiranylmethyl ester, polymer With ethene, ethenyl acetate, ethenyltrimethoxysilane and sodium ethenesulfonate (1:1); Tolerance ExemptionPDF
81 FR 43242 - Certain Beverage Brewing Capsules, Components Thereof, and Products Containing the Same; Notice of Institution of Formal Enforcement ProceedingPDF
81 FR 43240 - Certain Windshield Wipers and Components Thereof; Commission Determination To Grant the Joint Motion To Terminate the Investigation on the Basis of a Settlement Agreement; Termination of InvestigationPDF
81 FR 43234 - Certain Laser-Driven Light Sources, Subsystems Containing Laser-Driven Light Sources, and Products Containing Same; Commission Determination Not To Review an Initial Determination Granting a Joint Motion To Terminate the Investigation Based on a Settlement AgreementPDF
81 FR 43096 - Approval of Air Quality Implementation Plans; New Jersey, Carbon Monoxide Maintenance PlanPDF
81 FR 43087 - Safety Zone; Confluence of James River and Appomattox River, Hopewell, VAPDF
81 FR 43066 - Oil and Gas and Sulphur Operations in the Outer Continental Shelf-Civil Penalties Inflation AdjustmentsPDF
81 FR 43222 - Endangered Species; Marine Mammals; Issuance of PermitsPDF
81 FR 43223 - Endangered Species; Marine Mammals; Receipt of Applications for PermitPDF
81 FR 43250 - Final Notice of Job Corps Center for ClosurePDF
81 FR 43126 - Direct Investment Surveys: BE-13, Survey of New Foreign Direct Investment in the United States, and Changes to Private Fund Reporting on Direct Investment SurveysPDF
81 FR 43194 - Combined Notice of Filings #1PDF
81 FR 43217 - National Institute on Alcohol Abuse And Alcoholism; Notice of Closed MeetingsPDF
81 FR 43217 - National Institute on Alcohol Abuse and Alcoholism; Notice of Closed MeetingsPDF
81 FR 43217 - National Cancer Institute; Cancellation of MeetingPDF
81 FR 43292 - New Postal ProductsPDF
81 FR 43194 - Midwest Generation, LLC; Notice of Institution of Section 206 Proceeding and Refund Effective DatePDF
81 FR 43194 - Reactive Supply Compensation in Markets Operated by Regional Transmission Organizations and Independent System Operators; Supplemental Notice of WorkshopPDF
81 FR 43301 - MainStay Funds Trust, et al.;PDF
81 FR 43330 - Self-Regulatory Organizations; Bats BYX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.22(i) Identifying Certain Transactions as the Bats One Opening Price or the Bats One Closing PricePDF
81 FR 43295 - Self-Regulatory Organizations; Bats BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 11.22(j) Identifying Certain Transactions as the Bats One Opening Price or the Bats One Closing PricePDF
81 FR 43318 - Self-Regulatory Organizations; Bats EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 13.8(b) Identifying Certain Transactions as the Bats One Opening Price or the Bats One Closing PricePDF
81 FR 43315 - Self-Regulatory Organizations; Bats EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Rule 13.8(b) Identifying Certain Transactions as the Bats One Opening Price or the Bats One Closing PricePDF
81 FR 43327 - Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Designation of a Longer Period for Commission Action on Proposed Rule Change Relating to a Change to the Underlying Index for the PowerShares Build America Bond PortfolioPDF
81 FR 43261 - Notice and Request for Comments-Final Guidelines for Automated Financial-Eligibility ScreeningPDF
81 FR 43336 - Submission for OMB Review; Comment RequestPDF
81 FR 43065 - Office for Access to JusticePDF
81 FR 43070 - Implementation of the Federal Civil Penalties Inflation Adjustment ActPDF
81 FR 43101 - Radio Broadcasting Services; Raymond, WashingtonPDF
81 FR 43042 - Adjustments to Civil Monetary Penalty AmountsPDF
81 FR 43006 - Local and Regional Food Aid Procurement ProgramPDF
81 FR 43225 - Notice of Availability of the Proposed Resource Management Plan Amendment and Final Supplemental Environmental Impact Statement for the Roan Plateau Planning Area, ColoradoPDF
81 FR 43226 - Notice of Availability of the Proposed Resource Management Plan and Final Environmental Impact Statement for the Dominguez-Escalante National Conservation Area, ColoradoPDF
81 FR 43047 - Adoption of Updated EDGAR Filer ManualPDF
81 FR 43180 - Protection of Visibility: Amendments to Requirements for State PlansPDF
81 FR 43061 - The Food and Drug Administration's Policy on Declaring Small Amounts of Nutrients and Dietary Ingredients on Nutrition Labels; Guidance for Industry; AvailabilityPDF
81 FR 43200 - Open Commission MeetingPDF
81 FR 43040 - Space FlightPDF
81 FR 43337 - Consolidated Federal Oil & Gas and Federal & Indian Coal Valuation ReformPDF
81 FR 43091 - Civil Monetary Penalty Inflation Adjustment RulePDF
81 FR 43038 - Amendment of Class E Airspace for the Following Kansas Towns; Belleville, KS; Johnson, KS; Marysville, KS; Pittsburg, KS; and Washington, KSPDF
81 FR 43124 - Proposed Amendment of Class E Airspace for the Following Illinois Towns; Carmi, IL; De Kalb, IL; Harrisburg, IL; Kewanee, IL; Litchfield, IL; Paris, IL; and Taylorville, ILPDF
81 FR 43019 - Adjustment of Civil Penalties for InflationPDF
81 FR 43429 - Department of Labor Federal Civil Penalties Inflation Adjustment Act Catch-Up AdjustmentsPDF
81 FR 43021 - Rules of Practice and Procedure; Rules of Practice and Procedure in Adjudicatory Proceedings; Civil Money Penalty Inflation AdjustmentsPDF
81 FR 43245 - Stainless Steel Plate From Belgium, South Africa, and Taiwan Institution of Five-Year ReviewsPDF
81 FR 43235 - Heavy Forged Hand Tools From China; Institution of Five-Year ReviewsPDF
81 FR 43232 - Ammonium Nitrate From Russia; Institution of a Five-Year ReviewPDF
81 FR 43238 - Stainless Steel Sheet and Strip From Japan, Korea, and Taiwan; Institution of Five-Year ReviewsPDF
81 FR 43077 - Certifications and Exemptions Under the International Regulations for Preventing Collisions at Sea, 1972PDF
81 FR 43183 - Environmental Impact Statements: Tongass National Forest Land and Resource Management Plan AmendmentPDF
81 FR 43037 - Airworthiness Directives; Rolls-Royce Deutschland Ltd & Co KG Turbofan EnginesPDF
81 FR 43048 - Revised Medical Criteria for Evaluating Neurological DisordersPDF
81 FR 43120 - Airworthiness Directives; Dassault Aviation AirplanesPDF
81 FR 43122 - Airworthiness Directives; Bombardier, Inc. AirplanesPDF
81 FR 43069 - Sale and Issue of Marketable Book-Entry Treasury Bills, Notes, and BondsPDF
81 FR 43403 - Energy Conservation Program: Test Procedures for Integrated Light-Emitting Diode LampsPDF

Issue

81 127 Friday, July 1, 2016 Contents Agency Toxic Agency for Toxic Substances and Disease Registry NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 43202-43203 2016-15645 Agriculture Agriculture Department See

Animal and Plant Health Inspection Service

See

Foreign Agricultural Service

See

Forest Service

Alcohol Tobacco Tax Alcohol and Tobacco Tax and Trade Bureau RULES Civil Monetary Penalty Inflation Adjustment: Alcoholic Beverage Labeling Act, 43062-43065 2016-15636 Alcohol Tobacco Firearms Alcohol, Tobacco, Firearms, and Explosives Bureau NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application for Explosives License or Permit, 43248 2016-15669 National Response Team Customer Satisfaction Survey, 43248-43249 2016-15668 Animal Animal and Plant Health Inspection Service PROPOSED RULES Importation of Bone-In Ovine Meat from Uruguay, 43115-43120 2016-15625 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Importation of Fruit From Thailand Into the United States, 43183 2016-15705 Irradiation Phytosanitary Treatment of Imported Fruits and Vegetables, 43182-43183 2016-15706 Centers Disease Centers for Disease Control and Prevention NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 43203-43206 2016-15646 2016-15647 Coast Guard Coast Guard RULES Civil Monetary Penalty Adjustments for Inflation, 42987-43006 2016-15673 Safety Zones: Annual Firework Displays within the Captain of the Port, Puget Sound Zone, 43085 2016-15634 Confluence of James River and Appomattox River, Hopewell, VA, 43087-43089 2016-15608 Ohio River Mile 42.5 to 43.0, Chester, WV, 43089-43091 2016-15689 Shallowbag Bay, Manteo, NC, 43085-43087 2016-15700 Special Local Regulations and Safety Zones: Recurring Events Held in the Coast Guard Sector Northern New England Captain of the Port Zone, 43079-43084 2016-15701 PROPOSED RULES Safety Zones: South Branch of the Chicago River and Chicago Sanitary and Ship Canal, Chicago, IL, 43178-43180 2016-15695 Commerce Commerce Department See

Economic Analysis Bureau

See

Economic Development Administration

See

Industry and Security Bureau

See

International Trade Administration

See

National Oceanic and Atmospheric Administration

Committee for Purchase Committee for Purchase From People Who Are Blind or Severely Disabled NOTICES Procurement List; Additions and Deletions, 43190-43191 2016-15690 2016-15691 Community Development Community Development Financial Institutions Fund NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 43335-43336 2016-15719 Comptroller Comptroller of the Currency RULES Rules of Practice and Procedure in Adjudicatory Proceedings: Civil Money Penalty Inflation Adjustments, 43021-43028 2016-15376 Corporation Corporation for National and Community Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 43191-43192 2016-15637 Defense Department Defense Department See

Navy Department

NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Commercial Item Acquisitions, 43201-43202 2016-15703
Economic Analysis Bureau Economic Analysis Bureau PROPOSED RULES Direct Investment Surveys: Survey of New Foreign Direct Investment in the United States, Changes to Private Fund Reporting on Direct Investment Surveys, 43126-43130 2016-15598 Economic Development Economic Development Administration NOTICES Meetings: National Advisory Council on Innovation and Entrepreneurship, 43184-43185 2016-15654 Employee Benefits Employee Benefits Security Administration RULES Federal Civil Penalties Inflation Adjustment Act Catch-Up Adjustments, 43430-43461 2016-15378 Employment and Training Employment and Training Administration RULES Federal Civil Penalties Inflation Adjustment Act Catch-Up Adjustments, 43430-43461 2016-15378 NOTICES Job Corps Center for Closure, 43250-43254 2016-15603 Energy Department Energy Department See

Federal Energy Regulatory Commission

RULES Energy Conservation Program: Test Procedures for Integrated Light-Emitting Diode Lamps, 43404-43428 2016-14481 NOTICES Application for Long-Term, Multi-Contract Authorization to Export Liquefied Natural Gas to Non-Free Trade Agreement Nations: Eagle LNG Partners Jacksonville LLC, 43192-43194 2016-15694
Environmental Protection Environmental Protection Agency RULES Air Quality State Implementation Plans; Approvals and Promulgations: New Jersey; Carbon Monoxide Maintenance Plan, 43096-43097 2016-15609 Civil Monetary Penalty Inflation Adjustment Rule, 43091-43096 2016-15411 Engine-Testing Procedures; CFR Correction, 43101 2016-15805 Pesticide Tolerances; Exemptions from Requirements: 2-propenoic acid, 2-methyl-, 2-oxiranylmethyl ester, polymer with ethene, ethenyl acetate, 43097-43101 2016-15614 PROPOSED RULES Protection of Visibility: Requirements for State Plans, 43180-43181 2016-15493 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 43197-43198 2016-15737 2016-15738 Agency Information Collection Activities; Proposals, Submissions, and Approvals: NSPS/NESHAP for Wool Fiberglass Insulation Manufacturing Plants, 43199 2016-15725 Environmental Impact Statements; Availability, etc., 43198 2016-15709 Meetings: Environmental Financial Advisory Board, 43198-43199 2016-15727 Federal Accounting Federal Accounting Standards Advisory Board NOTICES Issuance of Statement of Federal Financial Accounting Standards, 43199-43200 2016-15639 Federal Aviation Federal Aviation Administration RULES Airworthiness Directives: Rolls-Royce Deutschland Ltd and Co KG Turbofan Engines, 43037-43038 2016-15351 Class E Airspace; Amendments: Belleville, KS; Johnson, KS; Marysville, KS; Pittsburg, KS; and Washington, KS, 43038-43040 2016-15406 PROPOSED RULES Airworthiness Directives: Bombardier, Inc. Airplanes, 43122-43124 2016-15289 Dassault Aviation Airplanes, 43120-43122 2016-15290 Class E Airspace; Amendments: Carmi, IL; De Kalb, IL; Harrisburg, IL; Kewanee, IL; Litchfield, IL; Paris, IL; and Taylorville, IL, 43124-43126 2016-15403 Federal Communications Federal Communications Commission RULES Radio Broadcasting Services: Raymond, WA, 43101 2016-15545 NOTICES Meetings: Open Commission Meeting, 43200-43201 2016-15449 Federal Contract Federal Contract Compliance Programs Office NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 43254-43261 2016-15671 Federal Energy Federal Energy Regulatory Commission NOTICES Combined Filings, 43194 2016-15597 Meetings: Reactive Supply Compensation in Markets Operated by Regional Transmission Organizations and Independent System Operators; Workshop Supplement, 43194-43197 2016-15585 Section 206 Proceeding and Refund Effective Date: Midwest Generation, LLC, 43194 2016-15586 Federal Financial Federal Financial Institutions Examination Council NOTICES Meetings: Appraisal Subcommittee, 43201 2016-15672 Federal Housing Finance Agency Federal Housing Finance Agency RULES Implementation of the Program Fraud Civil Remedies Act of 1986, 43031-43036 2016-15620 Rules of Practice and Procedure; Civil Money Penalty Inflation Adjustment, 43028-43031 2016-15619 Federal Railroad Federal Railroad Administration RULES Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act for a Violation of a Federal Railroad Safety Law or Federal Railroad Administration Safety Regulation or Order, 43105-43114 2016-15641 Inflation Adjustment of the Ordinary Maximum and Aggravated Maximum Civil Monetary Penalties for a Violation of the Hazardous Material Transportation Laws or Regulations, Orders, Special Permits, and Approvals Issued Under Those Laws, 43101-43105 2016-15642 Fiscal Fiscal Service RULES Sale and Issue of Marketable Book-Entry Treasury Bills, Notes, and Bonds, 43069-43070 2016-15248 Fish Fish and Wildlife Service NOTICES Environmental Impact Statements; Availability, etc.: Programmatic Review of Harvest Actions for Salmon and Steelhead in the Columbia River Basin Related to U.S. v. Oregon, 43187-43188 2016-15688 Permit Applications: Endangered Species; Marine Mammals, 43223-43224 2016-15604 Permits: Endangered Species; Marine Mammals, 43222-43223 2016-15605 Food and Drug Food and Drug Administration RULES Guidance: Policy on Declaring Small Amounts of Nutrients and Dietary Ingredients on Nutrition Labels, 43061-43062 2016-15477 PROPOSED RULES Submission of Food and Drug Administration Import Data in the Automated Commercial Environment, 43155-43178 2016-15684 NOTICES Guidance for Industry: Vulvovaginal Candidiasis: Developing Drugs for Treatment, 43212-43214 2016-15661 Guidance: Bioequivalence Recommendations for Paliperidone Palmitate, 43209-43210 2016-15663 Early Clinical Trials With Live Biotherapeutic Products: Chemistry, Manufacturing, and Control Information, 43206-43207 2016-15664 Elemental Impurities in Drug Products, 43211-43212 2016-15704 Recurrent Herpes Labialis: Developing Drugs for Treatment and Prevention, 43210-43211 2016-15698 Meetings: Erythropoietic Protoporphyria; Scientific Workshop, 43207-43209 2016-15662 Foreign Agricultural Foreign Agricultural Service RULES Local and Regional Food Aid Procurement Program, 43006-43019 2016-15537 Foreign Assets Foreign Assets Control Office RULES Implementation of the Federal Civil Penalties Inflation Adjustment Act, 43070-43077 2016-15552 Forest Forest Service NOTICES Environmental Impact Statements; Availability, etc.: Tongass National Forest Land and Resource Management Plan Amendment, 43183-43184 2016-15353 General Services General Services Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Commercial Item Acquisitions, 43201-43202 2016-15703 Geological Geological Survey NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 43224-43225 2016-15657 Health and Human Health and Human Services Department See

Agency for Toxic Substances and Disease Registry

See

Centers for Disease Control and Prevention

See

Food and Drug Administration

See

Health Resources and Services Administration

See

National Institutes of Health

Health Resources Health Resources and Services Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 43215-43216 2016-15710 Lists of Designated Primary Medical Care, Mental Health, and Dental Health Professional Shortage Areas, 43214-43215 2016-15678 Homeland Homeland Security Department See

Coast Guard

See

Transportation Security Administration

See

U.S. Citizenship and Immigration Services

See

U.S. Customs and Border Protection

RULES Civil Monetary Penalty Adjustments for Inflation, 42987-43006 2016-15673 Federal Civil Penalties Inflation Adjustment Act Catch-Up Adjustments: H-2B Temporary Non-agricultural Worker Program, 42983-42986 2016-15679
Industry Industry and Security Bureau NOTICES Meetings: Information Systems Technical Advisory Committee, 43185 2016-15638 Interior Interior Department See

Fish and Wildlife Service

See

Geological Survey

See

Land Management Bureau

See

Ocean Energy Management Bureau

See

Office of Natural Resources Revenue

International Trade Adm International Trade Administration NOTICES Initiation of Five-Year (Sunset) Reviews, 43185-43187 2016-15722 International Trade Com International Trade Commission NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Ammonium Nitrate from Russia, 43232-43234 2016-15371 Heavy Forged Hand Tools from China, 43235-43238 2016-15374 Stainless Steel Plate from Belgium, South Africa, and Taiwan, 43245-43248 2016-15375 Stainless Steel Sheet and Strip from Japan, Korea, and Taiwan, 43238-43240 2016-15369 Complaints: Certain Hand Dryers and Housings for Hand Dryers, 43241-43242 2016-15702 Institution of Formal Enforcement Proceedings: Certain Beverage Brewing Capsules, Components Thereof, and Products Containing the Same, 43242-43243 2016-15612 Investigations; Determinations, Modifications, and Rulings, etc.: Certain Inkjet Printers, Printheads, and Ink Cartridges, Components Thereof, and Products Containing Same, 43244-43245 2016-15621 Certain Laser-Driven Light Sources, Subsystems Containing Laser-Driven Light Sources, and Products Containing Same, 43234-43235 2016-15610 Certain Magnetic Data Storage Tapes and Cartridges Containing the Same, 43243-43244 2016-15627 Certain Windshield Wipers and Components Thereof, 43240-43241 2016-15611 Justice Department Justice Department See

Alcohol, Tobacco, Firearms, and Explosives Bureau

RULES Office for Access to Justice, 43065-43066 2016-15574 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Assessing Potential Benefits of Accessible Web Content for Individuals Who Are Blind, 43249-43250 2016-15670 Proposed Consent Decrees under CERCLA, 43250 2016-15658
Labor Department Labor Department See

Employee Benefits Security Administration

See

Employment and Training Administration

See

Federal Contract Compliance Programs Office

See

Mine Safety and Health Administration

See

Occupational Safety and Health Administration

See

Wage and Hour Division

See

Workers Compensation Programs Office

RULES Federal Civil Penalties Inflation Adjustment Act Catch-Up Adjustments, 43430-43461 2016-15378
Land Land Management Bureau NOTICES Environmental Impact Statements; Availability, etc.: Dominguez-Escalante National Conservation Area, CO; Proposed Land and Resource Management Plan, 43226-43228 2016-15526 Roan Plateau Planning Area, CO; Proposed Land and Resource Management Plan Amendment, 43225-43226 2016-15527 Temporary Closure and Temporary Restrictions of Specific Uses on Public Lands for the Burning Man Event (Permitted Event), Pershing County, NV, 43228-43232 2016-15681 Legal Legal Services Corporation NOTICES Final Guidelines for Automated Financial-Eligibility Screening, 43261-43262 2016-15578 Mine Mine Safety and Health Administration RULES Federal Civil Penalties Inflation Adjustment Act Catch-Up Adjustments, 43430-43461 2016-15378 NASA National Aeronautics and Space Administration RULES Space Flight, 43040-43042 2016-15431 NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Commercial Item Acquisitions, 43201-43202 2016-15703 National Archives National Archives and Records Administration See

Office of Government Information Services

NOTICES Records Schedules; Availability, 43262-43264 2016-15697
National Credit National Credit Union Administration NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Privacy of Consumer Financial Information Recordkeeping and Disclosure Requirements Under Gramm-Leach-Bliley Act and Regulation P, 43264-43265 2016-15651 National Institute National Institutes of Health NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Population Assessment of Tobacco and Health Study—Fourth Wave of Data Collection, 43217-43219 2016-15644 Charter Renewals: Office of AIDS Research Advisory Council, 43216-43217 2016-15643 Meetings: National Cancer Institute; Cancellation, 43217 2016-15591 National Institute on Alcohol Abuse and Alcoholism, 43217 2016-15592 2016-15593 National Oceanic National Oceanic and Atmospheric Administration NOTICES Endangered and Threatened Species: Take of Anadromous Fish, 43188-43190 2016-15665 Environmental Impact Statements; Availability, etc.: Programmatic Review of Harvest Actions for Salmon and Steelhead in the Columbia River Basin Related to U.S. v. Oregon, 43187-43188 2016-15688 Meetings: North Pacific Fishery Management Council, 43190 2016-15656 Navy Navy Department RULES Certifications and Exemptions Under the International Regulations for Preventing Collisions at Sea, 1972, 43077-43079 2016-15359 Nuclear Regulatory Nuclear Regulatory Commission RULES Adjustment of Civil Penalties for Inflation, 43019-43021 2016-15399 NOTICES Final Procedures for Conducting Hearings on Conformance with the Acceptance Criteria in Combined Licenses, 43266-43292 2016-15693 Occupational Safety Health Adm Occupational Safety and Health Administration RULES Federal Civil Penalties Inflation Adjustment Act Catch-Up Adjustments, 43430-43461 2016-15378 Ocean Energy Management Ocean Energy Management Bureau RULES Oil and Gas and Sulphur Operations in the Outer Continental Shelf--Civil Penalties Inflation Adjustments, 43066-43069 2016-15607 OGIS Office of Government Information Services NOTICES Meetings: Freedom of Information Act Advisory Committee, 43264 2016-15667 Natural Resources Office of Natural Resources Revenue RULES Consolidated Federal Oil and Gas and Federal and Indian Coal Valuation Reform, 43338-43402 2016-15420 Postal Regulatory Postal Regulatory Commission NOTICES New Postal Products, 43292-43293 2016-15587 Postal Service Postal Service NOTICES Clarification of the Move Update Standard, 43293-43294 2016-15648 Reassignment of Post Office Box Section 98025 to Competitive Fee Group, and of Sections 87325 and 87326 to Market Dominant Fee Groups, 43294-43295 2016-15640 Securities Securities and Exchange Commission RULES Adjustments to Civil Monetary Penalty Amounts, 43042-43047 2016-15541 Adoption of Updated EDGAR Filer Manual, 43047-43048 2016-15510 PROPOSED RULES Smaller Reporting Company Definition; Amendments, 43130-43154 2016-15674 NOTICES Applications: MainStay Funds Trust, et al., 43301-43306 2016-15584 Self-Regulatory Organizations; Proposed Rule Changes: Bats BYX Exchange, Inc., 43306-43308, 43330-43332 2016-15583 2016-15717 Bats BZX Exchange, Inc., 43295-43297 2016-15582 Bats EDGA Exchange, Inc., 43315-43318 2016-15580 Bats EDGX Exchange, Inc., 43318-43320 2016-15581 BOX Options Exchange LLC, 43322-43326 2016-15711 2016-15712 Chicago Board Options Exchange, Inc., 43308-43315 2016-15716 NYSE Arca, Inc., 43297-43301, 43327, 43332-43334 2016-15579 2016-15713 2016-15718 NYSE MKT LLC, 43320-43322 2016-15715 The NASDAQ Stock Market LLC, 43327-43330 2016-15714 Small Business Small Business Administration NOTICES Interest Rates, 43334 2016-15686 Social Social Security Administration RULES Revised Medical Criteria for Evaluating Neurological Disorders, 43048-43061 2016-15306 State Department State Department NOTICES Designations as Foreign Terrorist Organizations: al-Qa'ida in the Indian Subcontinent, a.k.a. al-Qaeda in the Indian Subcontinent, a.k.a. Qaedat al-Jihad in the Indian Subcontinent, 43334 2016-15680 2016-15683 Surface Transportation Surface Transportation Board NOTICES Petitions for Declaratory Orders: Newvista Property Holdings, LLC In Utah County, UT; Adverse Abandonment of the Ironton Branch, 43334-43335 2016-15652 Transportation Department Transportation Department See

Federal Aviation Administration

See

Federal Railroad Administration

Security Transportation Security Administration RULES Civil Monetary Penalty Adjustments for Inflation, 42987-43006 2016-15673 Treasury Treasury Department See

Alcohol and Tobacco Tax and Trade Bureau

See

Community Development Financial Institutions Fund

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Comptroller of the Currency

See

Fiscal Service

See

Foreign Assets Control Office

NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 43336 2016-15577
U.S. Citizenship U.S. Citizenship and Immigration Services NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Application for Waiver of Grounds of Inadmissibility, 43221-43222 2016-15655 Customs U.S. Customs and Border Protection NOTICES Final Country of Origin Determinations: Certain Network Cables and Transceivers, 43219-43221 2016-15692 Wage Wage and Hour Division RULES Federal Civil Penalties Inflation Adjustment Act Catch-Up Adjustments, 43430-43461 2016-15378 Federal Civil Penalties Inflation Adjustment Act Catch-Up Adjustments: H-2B Temporary Non-agricultural Worker Program, 42983-42986 2016-15679 Workers' Workers Compensation Programs Office RULES Federal Civil Penalties Inflation Adjustment Act Catch-Up Adjustments, 43430-43461 2016-15378 Separate Parts In This Issue Part II Interior Department, Office of Natural Resources Revenue, 43338-43402 2016-15420 Part III Energy Department, 43404-43428 2016-14481 Part IV Labor Department, Employee Benefits Security Administration, 43430-43461 2016-15378 Labor Department, Employment and Training Administration, 43430-43461 2016-15378 Labor Department, Mine Safety and Health Administration, 43430-43461 2016-15378 Labor Department, Occupational Safety and Health Administration, 43430-43461 2016-15378 Labor Department, Wage and Hour Division, 43430-43461 2016-15378 Labor Department, Workers Compensation Programs Office, 43430-43461 2016-15378 Labor Department, 43430-43461 2016-15378 Reader Aids

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81 127 Friday, July 1, 2016 Rules and Regulations DEPARTMENT OF HOMELAND SECURITY [CIS No. 2585-16] RIN 1615-AC10 DEPARTMENT OF LABOR Wage and Hour Division 29 CFR Part 503 RIN 1235-AA15 Department of Homeland Security and Department of Labor Federal Civil Penalties Inflation Adjustment Act Catch-Up Adjustments for the H-2B Temporary Non-agricultural Worker Program AGENCY:

Department of Homeland Security; Wage and Hour Division, Department of Labor.

ACTION:

Interim final rule.

SUMMARY:

The U.S. Department of Homeland Security (DHS) and the U.S. Department of Labor (DOL) (collectively, “the Departments”) are jointly issuing this interim final rule to adjust the amounts of civil monetary penalties assessed or enforced in connection with the employment of temporary nonimmigrant workers under the H-2B program. The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Inflation Adjustment Act) requires agencies to adjust the levels of civil monetary penalties with an initial catch-up adjustment, followed by annual adjustments for inflation. The Departments are required to calculate the catch-up and subsequent annual adjustments based on the Consumer Price Index for all Urban Consumers. The Departments must publish the interim final rule by July 1, 2016, and the new penalty levels must be effective no later than August 1, 2016. The increased penalty levels will apply to all penalties assessed after the effective date, August 1, 2016, for associated violations that occurred after November 2, 2015, as discussed below.

DATES:

This interim final rule is effective August 1, 2016. The adjusted civil penalty amounts are applicable only to civil penalties assessed after August 1, 2016, whose associated violations occurred after November 2, 2015, the date of enactment of the Inflation Adjustment Act. Therefore, violations occurring on or before November 2, 2015, as well as assessments made prior to August 1, 2016 whose associated violations occurred after November 2, 2015, will continue to be subject to the civil monetary penalty amounts currently set forth in the regulations in 29 CFR part 503 (2015). Interested persons are invited to submit written comments on this interim final rule on or before August 15, 2016.

ADDRESSES:

You may submit comments, identified by Regulatory Information Number (RIN) 1235-AA15, by either of the following methods:

Electronic Comments: Comments may be sent via http://www.regulations.gov, a Federal E-Government Web site that allows the public to find, review, and submit comments on documents that agencies have published in the Federal Register and that are open for comment. Simply type in “Department of Homeland Security and Department of Labor Federal Civil Penalties Inflation Adjustment Act Catch-Up Adjustments” (in quotes) in the Comment or Submission search box, click Go, and follow the instructions for submitting comments.

Mail: Address written submissions to Robert Waterman, Compliance Specialist, Wage and Hour Division, U.S. Department of Labor, Room S-3510, 200 Constitution Avenue NW., Washington, DC 20210.

Instructions: Please submit only one copy of your comments by only one method. All submissions must include the agencies' names and the RIN 1235-AA15. Please be advised that comments received will become a matter of public record and will be posted without change to http://www.regulations.gov, including any personal information provided. Comments that are mailed must be received by the date indicated for consideration.

Docket: For access to the docket to read background documents or comments, go to the Federal e-Rulemaking Portal at http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT:

Pamela Peters, Program Analyst, U.S. Department of Labor, Room S-2312, 200 Constitution Avenue NW., Washington, DC 20210; telephone: (202) 693-5959 (this is not a toll-free number). Copies of this interim final rule may be obtained in alternative formats (large print, Braille, audio tape or disc), upon request, by calling (202) 693-5959 (this is not a toll-free number). TTY/TDD callers may dial toll-free 1-877-889-5627 to obtain information or request materials in alternative formats.

SUPPLEMENTARY INFORMATION: I. Regulatory Information

The U.S. Department of Homeland Security (DHS) and U.S. Department of Labor (DOL) (collectively, “the Departments”) are promulgating this interim final rule to ensure that the amount of civil penalties assessed or enforced in our joint rules reflect the statutorily mandated maximum as adjusted for inflation. Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (“Inflation Adjustment Act”), the Departments are required to promulgate a “catch-up adjustment” through an interim final rule. Pursuant to the Inflation Adjustment Act and 5 U.S.C. 553(b)(3)(B), the Departments find that good cause exists for issuance of this interim final rule without prior notice and comment. By operation of the Inflation Adjustment Act, the Departments must publish the catch-up adjustment by July 1, 2016, and the rule must be effective no later than August 1, 2016. The Inflation Adjustment Act further provides that the increased penalty levels apply to any penalties assessed after the effective date of the increase. Additionally, the Inflation Adjustment Act provides a clear formula for adjustment of the civil penalties, leaving the agencies little room for discretion. Both because of the requirement for action by July 1 of this year, and because of the mechanistic nature of the rulemaking, the Departments find that notice and comment prior to issuing the inflation adjustment would be impracticable and unnecessary, respectively, in addition to being contrary to the language of the Inflation Adjustment Act.

II. Background Inflation Adjustment Act

On November 2, 2015, the President signed into law the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Pub. L. 114-74, 701 (“Inflation Adjustment Act”), which further amended the Federal Civil Penalties Inflation Adjustment Act of 1990, Pub. L. 101-410, as previously amended by the 1996 Debt Collection Improvement Act (collectively, the “Prior Inflation Adjustment Act”), to improve the effectiveness of civil monetary penalties and to maintain their deterrent effect. The Inflation Adjustment Act requires agencies to: (1) adjust the level of civil monetary penalties with an initial “catch-up” adjustment through an interim final rulemaking; and (2) make subsequent annual adjustments for inflation.

The method of calculating inflation adjustments in the Inflation Adjustment Act differs substantially from the methods used in past inflation adjustment rulemakings conducted pursuant to the Prior Inflation Act. Previously, adjustments to civil penalties were conducted under rules that required significant rounding of figures. For example, a penalty increase that was greater than $1,000, but less than or equal to $10,000, would be rounded to the nearest multiple of $1,000. While this allowed penalties to be kept at round numbers, it meant that penalties would often not be increased at all if the inflation factor was not large enough. Furthermore, increases to penalties were capped at 10 percent. Over time, this formula caused penalties to lose value relative to total inflation.

The Inflation Adjustment Act has removed these rounding rules; now, penalties are simply rounded to the nearest $1. This rounding ensures that penalties will be increased each year to a figure commensurate with the actual calculated inflation, and ensures that penalties are more easily and consistently updated. Furthermore, the Inflation Adjustment Act “resets” the inflation calculations by excluding prior inflationary adjustments under the Prior Inflation Act, which contributed to a decline in the real value of penalty levels. To do this, the Inflation Adjustment Act requires agencies to identify, for each penalty, the year and corresponding amount(s) for which the maximum penalty level or range of minimum and maximum penalties was established (i.e., originally enacted by Congress or by regulation) or last adjusted other than pursuant to the Prior Inflation Act.

Pursuant to the Inflation Adjustment Act, the Departments have reviewed the civil penalties for the H-2B program that are enforced by the Department of Labor. This interim final rule sets forth the initial “catch-up” adjustment only for these civil penalties. As required by the Inflation Adjustment Act, these civil penalties levels will subsequently be adjusted annually for inflation.

DOL's Enforcement Authority in the H-2B Program

The Immigration and Nationality Act (INA) establishes the H-2B nonimmigrant classification for a non-agricultural temporary worker “having a residence in a foreign country which he has no intention of abandoning who is coming temporarily to the United States to perform . . . temporary [non-agricultural] service or labor if unemployed persons capable of performing such service or labor cannot be found in this country.” 8 U.S.C. 1101(a)(15)(H)(ii)(b), INA section 101(a)(15)(H)(ii)(b). DHS, which is charged with administration of the H-2B program, may grant a petition for an H-2B nonimmigrant worker “after consultation with appropriate agencies of the Government.” 8 U.S.C. 1184(c)(1), INA section 214(c)(1). DHS regulations therefore provide that an H-2B petition for temporary employment in the United States must be accompanied by an approved temporary labor certification from DOL. 8 CFR 214.2(h)(6)(iii)(A) and (iv)(A). The temporary labor certification serves as DHS's consultation with DOL with respect to whether a qualified U.S. worker is available to fill the petitioning H-2B employer's job opportunity and whether a foreign worker's employment in the job opportunity will adversely affect the wages or working conditions of similarly employed U.S. workers. See 8 CFR 214.2(h)(6)(iii)(A) and (D).1

1 DHS requires DOL to structure this consultative process by issuing regulations. Id. (requiring the Secretary of Labor “to separately establish for the temporary labor program under his or her jurisdiction, by regulation at 20 CFR 655, procedures for administering that temporary labor program under his or her jurisdiction”).

The INA also authorizes DHS to impose appropriate remedies, including civil monetary penalties, against an employer for a substantial failure to meet the terms and conditions of employing an H-2B nonimmigrant worker, or for a willful misrepresentation of a material fact in a petition for an H-2B nonimmigrant worker. 8 U.S.C. 1184(c)(14)(A), INA section 214(c)(14)(A). The INA expressly and specifically authorizes DHS to delegate to DOL the aforementioned H-2B enforcement authorities. 8 U.S.C. 1184(c)(14)(B), INA section 214(c)(14)(B). DHS has delegated this authority to DOL, including authority over the civil monetary penalty established by law at associated 8 U.S.C. 1184(c)(14)(A)(i), INA section 214(c)(14)(A)(i). See DHS, Delegation of Authority to DOL under Section 214(c)(14)(A) of the Immigration and Nationality Act (Jan. 16, 2009) (available in the online docket for this Interim Final Rule at http://www.regulations.gov, in the Supporting Documents section); see 8 CFR 214.2(h)(6)(ix) (stating that DOL may investigate employers to enforce compliance with the conditions of, among other things, an H-2B petition and a DOL-approved temporary labor certification). Consistent with 8 CFR 214.2(h)(6)(ix) and DHS's delegation of statutory enforcement authority, DOL has authority to independently set, adjust, and impose civil monetary penalties under 8 U.S.C. 1184(c)(14)(A)(i), INA section 214(c)(14)(A)(i), and the Inflation Adjustment Act, amending the Prior Inflation Act.

Joint Issuance

On April 29, 2015, following a court's vacatur of nearly all of DOL's H-2B regulations, the Departments jointly promulgated an interim final rule governing DOL's role in enforcing the statutory and regulatory rights and obligations applicable to employment under the H-2B program. See Temporary Non-Agricultural Employment of H-2B Aliens in the United States, 80 FR 24,042 (Apr. 29, 2015) (codified at 8 CFR part 214, 20 CFR part 655, and 29 CFR part 503) (“2015 H-2B IFR”). These regulations include a provision regarding the assessment of civil monetary penalties by the Department of Labor. See 29 CFR 503.23.

As explained in the 2015 H-2B IFR, following conflicting legal decisions about the Department of Labor's authority to independently issue legislative rules to carry out its duties for the H-2B program under the INA, the Departments jointly issued the 2015 H-2B IFR “to ensure that there can be no question about the authority for and validity of the regulations in this area.” See 80 FR 24,045; see also 24,044-47. The Departments further explained that by issuing the 2015 H-2B IFR jointly, “the Departments affirm that this rule is fully consistent with the INA and implementing DHS regulations and is vital to DHS's ability to faithfully implement the statutory labor protections attendant to the program.” Id.

Litigation on these and related matters is ongoing. Accordingly, notwithstanding that DOL has authority to independently issue this inflation adjustment, and to ensure that there can be no question about the authority underlying this action, DHS and DOL are jointly issuing this Interim Final Rule.2 The Interim Final Rule implements the Federal Civil Penalties Inflation Adjustment Act's requirements with respect to the civil monetary penalty provisions found at 29 CFR 503.23.

2 Consistent with DOL's delegated authority under 8 U.S.C. 1184(c)(14), INA section 214(c)(14) and the Federal Civil Penalties Inflation Adjustment Act, DOL will make future adjustments to the civil monetary penalty.

III. Analysis

Section 214(c)(14) of the INA, 8 U.S.C. 1184(c)(14), provides for the imposition of civil money penalties for a substantial failure to meet the terms and conditions of employing an H-2B nonimmigrant worker, or for a willful misrepresentation of a material fact in a petition for an H-2B nonimmigrant worker. This civil money penalty appears in regulation at 29 CFR 503.23. Applicable violations include those related to wages, impermissible deductions, prohibited fees and expenses, and improper refusal to employ or hire U.S. workers, among others. Existing § 503.23(b), (c), and (d) provide for a civil money penalty not to exceed $10,000 per violation. The maximum penalty amount last established by statute or regulation other than the Inflation Adjustment Act was $10,000 in 2005 and is the same as the existing maximum penalty amount. See Save Our Small and Seasonal Businesses Act of 2005, Title IV of Pub. L. 109-13, 404 (May 11, 2005).

To adjust the existing civil money penalty for this section, the Departments multiplied that maximum penalty amount by the inflation adjustment factor for 2005 of 1.19397, which resulted in a penalty of $11,940. The amount of the increase from $10,000 to $11,940 is $1,940, which is less than the statutory cap of 150% of the existing $10,000 penalty, which is $15,000; accordingly, the amount of the increase is not limited by the statutory cap. Consequently, § 503.23(b), (c), and (d) are revised to increase the maximum penalties for these violations from $10,000 to $11,940 per violation.

The Departments invite comments on the calculations outlined in this interim final rule.

IV. Paperwork Reduction Act

The Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) requires that the Departments consider the impact of paperwork and other information collection burdens imposed on the public. The Departments have determined that this interim final rule does not require any collection of information.

V. Executive Orders 12866: Regulatory Planning and Review; and Executive Order 13563: Improving Regulation and Regulatory Review

Executive Order 12866 requires that regulatory agencies assess both the costs and benefits of significant regulatory actions. Under the Executive Order, a “significant regulatory action” is one meeting any of a number of specified conditions, including the following: Having an annual effect on the economy of $100 million or more; creating a serious inconsistency or interfering with an action of another agency; materially altering the budgetary impact of entitlements or the rights of entitlement recipients, or raising novel legal or policy issues.

The Departments have determined that this interim final rule is not a “significant” regulatory action and a cost-benefit and economic analysis is not required. This regulation merely adjusts civil monetary penalties in accordance with inflation as required by the Inflation Adjustment Act, and has no impact on disclosure or compliance costs. The benefit provided by the inflationary adjustment to the maximum civil monetary penalties is that of maintaining the incentive for the regulated community to comply with the laws enforced by the Departments, and not allowing the incentive to be diminished by inflation.

Executive Order 13563 directs agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility to minimize burden.

As provided by Section 701(b)(1)(A) of the Inflation Adjustment Act, the Departments considered whether to publish a notice of proposed rulemaking to explore whether increasing the civil monetary penalty by the otherwise-required amount will have a negative economic impact or whether the social costs of increasing the civil monetary penalty by the otherwise required amount outweighs the benefits. The Departments determined that no such proposed rule is necessary given the modest increases to statutory penalties provided by the Inflation Adjustment Act, especially given the statutory cap.

In that context, Congress has already determined that any possible increase in costs is justified by the overall benefits of such adjustments. This interim final rule makes only the statutory changes outlined herein; thus there are no alternatives or further analysis required by E.O. 13563.

VI. Regulatory Flexibility Act and Small Business Regulatory Enforcement Fairness Act

The Regulatory Flexibility Act, 5 U.S.C. 601 et seq. (RFA), imposes certain requirements on Federal agency rules that are subject to the notice and comment requirements of the APA, 5 U.S.C. 553(b), and that are likely to have a significant economic impact on a substantial number of small entities. This interim final rule is exempt from the notice and comment requirements of the APA because the Inflation Adjustment Act directed agencies to issue an interim final rule. Moreover, pursuant to the Inflation Adjustment Act and 5 U.S.C. 553(b)(3)(B), the Departments find that good cause exists for issuing this interim final rule without prior notice and comment. By operation of the Inflation Adjustment Act, the Departments must publish the catch-up adjustment by July 1, 2016, and the rule must be effective no later than August 1, 2016. Additionally, the Inflation Adjustment Act provides a clear formula for adjustment of the civil penalties, leaving the agencies little room for discretion. For these reasons, the Departments find that providing notice and comment before issuing the IFR would be impracticable and unnecessary in this situation and contrary to the language of the Inflation Adjustment Act.

Therefore, the requirements of the RFA applicable to notices of proposed rulemaking, 5 U.S.C. 603, do not apply to this interim final rule. Accordingly, the Departments are not required to either certify that the interim final rule would not have a significant economic impact on a substantial number of small entities or conduct a regulatory flexibility analysis. Indeed, the rule only adjusts for the effects of inflation.

VII. Other Regulatory Considerations A. The Unfunded Mandates Reform Act of 1995

Because the interim final rule simply adjusts for inflation, it does not include any Federal mandate that may result in increased expenditures by State, local, or tribal governments; nor does it increase private sector expenditures by more than $100 million annually; nor does it significantly or uniquely affect small governments. Accordingly, the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1501 et seq.) requires no further agency action or analysis.

B. Executive Order 13132: Federalism

This interim final rule does not have federalism implications because it does not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. Accordingly, Executive Order 13132, Federalism, requires no further agency action or analysis.

C. Executive Order 13175, Indian Tribal Governments

This interim final rule does not have “tribal implications” because it does not have substantial direct effects on one or more Indian tribes, on the relationship between the Federal government and Indian tribes, or on the distribution of power and responsibilities between the Federal government and Indian tribes. Accordingly, Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, requires no further agency action or analysis.

D. The Treasury and General Government Appropriations Act of 1999: Assessment of Federal Regulations and Policies on Families

This interim final rule will have no effect on family well-being or stability, marital commitment, parental rights or authority, or income or poverty of families and children. Accordingly, section 654 of the Treasury and General Government Appropriations Act of 1999 (5 U.S.C. 601 note) requires no further agency action, analysis, or assessment.

E. Executive Order 13045: Protection of Children From Environmental Health Risks and Safety Risks

This interim final rule will have no adverse impact on children. Accordingly, Executive Order 13045, Protection of Children from Environmental Health Risks and Safety Risks, as amended by Executive Orders 13229 and 13296, requires no further agency action or analysis.

F. Environmental Impact Assessment

This action is one of a category of actions that do not individually or cumulatively have a significant effect on the human environment. This action is therefore categorically excluded from further review under the National Environmental Policy Act of 1969 (NEPA), 42 U.S.C. 4321-4375.

G. Executive Order 13211, Energy Supply

This interim final rule has not been identified to have impacts on energy supply. Accordingly, Executive Order 13211 requires no further Agency action or analysis.

H. Executive Order 12630, Constitutionally Protected Property Rights

This interim final rule will not implement a policy with takings implications. Accordingly, Executive Order 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights, requires no further agency action or analysis.

I. Executive Order 12988, Civil Justice Reform Analysis

This interim final rule was drafted and reviewed in accordance with Executive Order 12988, Civil Justice Reform. This interim final rule was written to provide a clear legal standard for affected conduct and was carefully reviewed to eliminate drafting errors and ambiguities, so as to minimize litigation and undue burden on the Federal court system. The Departments have determined that this interim final rule meets the applicable standards provided in section 3 of Executive Order 12988.

List of Subjects in 29 CFR Part 503

Administrative practice and procedure, Aliens, Employment, Housing, Immigration, Labor, Penalties, Transportation, Wages.

Accordingly, for the reasons stated in the preamble, 29 CFR part 503 is amended as follows:

PART 503-ENFORCEMENT OF OBLIGATIONS FOR TEMPORARY NONIMMIGRANT NON-AGRICULTURAL WORKERS DESCRIBED IN THE IMMIGRATION AND NATIONALITY ACT 1. The authority citation for part 503 is revised to read as follows: Authority:

8 U.S.C. 1101(a)(15)(H)(ii)(b); 8 U.S.C. 1184; 8 CFR 214.2(h); 28 U.S.C. 2461 note (Federal Civil Penalties Inflation Adjustment Act of 1990); Pub. L. 114-74 at § 701.

2. Amend § 503.23 by revising paragraph (b), the first sentence of paragraph (c), and paragraph (d) to read as follows:
§ 503.23 Civil money penalty assessment.

(b) Upon determining that an employer has violated any provisions of § 503.16 related to wages, impermissible deductions or prohibited fees and expenses, the Administrator, WHD, may assess civil money penalties that are equal to the difference between the amount that should have been paid and the amount that actually was paid to such worker(s), not to exceed $11,940 per violation.

(c) Upon determining that an employer has terminated by layoff or otherwise or has refused to employ any worker in violation of § 503.16(r), (t), or (v), within the periods described in those sections, the Administrator, WHD may assess civil money penalties that are equal to the wages that would have been earned but for the layoff or failure to hire, not to exceed $11,940 per violation. * * *

(d) The Administrator, WHD, may assess civil money penalties in an amount not to exceed $11,940 per violation for any other violation that meets the standards described in § 503.19.

Signed at Washington, DC this 28th day of June, 2016. Jeh Charles Johnson, Secretary of Homeland Security. Signed at Washington, DC this 23 day of June, 2016. Thomas E. Perez, Secretary of Labor.
[FR Doc. 2016-15679 Filed 6-30-16; 8:45 am] BILLING CODE 4510-27-9111-97-P
DEPARTMENT OF HOMELAND SECURITY 6 CFR Part 27 8 CFR Parts 270, 274a, and 280 Coast Guard 33 CFR Part 27 Transportation Security Administration 49 CFR Part 1503 RIN 1601-AA80 [Docket No. DHS-2016-0034] Civil Monetary Penalty Adjustments for Inflation AGENCY:

Department of Homeland Security.

ACTION:

Interim final rule with request for comments.

SUMMARY:

This rule amends Department of Homeland Security (DHS or Department) regulations to adjust DHS and component civil monetary penalties for inflation. DHS calculated the adjusted penalties according to the statutory formula in the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, which was signed into law on November 2, 2015. The adjusted penalties will be effective for civil penalties assessed after August 1, 2016 whose associated violations occurred after November 2, 2015.

DATES:

Effective Date. This rule is effective on August 1, 2016.

Comment Date: Comments must be received on or before August 1, 2016.

ADDRESSES:

You may submit comments, identified by docket number DHS-2016-0034, by one of the following methods:

Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments.

Mail: Megan Westmoreland, Office of the General Counsel, U.S. Department of Homeland Security, 245 Murray Lane SW., Mail Stop 0485, Washington, DC 20528-0485.

FOR FURTHER INFORMATION CONTACT:

Megan Westmoreland, Attorney-Advisor, Office of the General Counsel, U.S. Department of Homeland Security. Phone: 202-447-4384.

SUPPLEMENTARY INFORMATION:

Table of Contents I. Background II. Adjustments by Component A. National Protection and Programs Directorate B. U.S. Customs and Border Protection C. Immigration and Customs Enforcement D. U.S. Coast Guard E. Transportation Security Administration III. Administrative Procedure Act IV. Regulatory Analyses A. Executive Orders 12866 and 13563 B. Regulatory Flexibility Act C. Unfunded Mandates Reform Act D. Paperwork Reduction Act I. Background

On November 2, 2015, the President signed into law the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Pub. L. 114-74 section 701 (Nov. 2, 2105)) (the 2015 Act),1 which further amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note) (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 issuance of an interim final rule (IFR) and (2) make subsequent annual adjustments for inflation.

1 The 2015 Act was enacted as part of the Bipartisan Budget Act of 2015, Public Law 114-74 (Nov. 2, 2015).

The 2015 Act applies to all agency civil penalties except for any penalty (including any addition to tax and additional amount) under the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) and the Tariff Act of 1930 (19 U.S.C. 1202 et seq.). See sec. 4(a)(1) of the 2015 Act. In the case of DHS, several civil penalties that are collected by U.S. Customs and Border Protection (CBP) and the U.S. Coast Guard fall under the Tariff Act of 1930, and thus DHS is not adjusting those civil penalties in this rulemaking.

The 2015 Act applies the new penalty amounts to all penalties that DHS assesses after August 1, 2016, the effective date of this rule. Additionally, pursuant to 28 U.S.C. 2461 note sec. 6, as amended by the 2015 Act, DHS will apply the adjusted penalty amounts for any violations that occurred after November 2, 2015 (i.e., the date the 2015 Act was signed into law) as long as the penalty is assessed after the effective date of this interim final rule.

The 2015 Act provides a new method for calculating inflation adjustments. The new method differs substantially from the methods that agencies used in the past when conducting inflation adjustments pursuant to the 1990 Inflation Adjustment Act. The new method is intended to more accurately reflect inflation. Previously, when agencies conducted adjustments to civil penalties, they did so under rules that required significant rounding of figures. For example, an agency would round a penalty increase that was greater than $1,000, but less than or equal to $10,000, to the nearest multiple of $1,000. While this allowed penalties to be kept at round numbers, it meant that agencies would often not increase penalties at all if the inflation factor was not large enough. Furthermore, increases to penalties were capped at 10 percent, which meant that longer periods without an inflation adjustment could cause a penalty to rapidly lose value in real terms. Over time, the formula used in the 1990 Inflation Adjustment Act calculations frequently caused penalties to lose value relative to actual inflation. The 2015 Act removed these rounding rules, and instead instructs agencies to round penalties to the nearest $1. While this creates penalty values that are no longer round numbers, it does ensure that agencies will increase penalties each year to a figure commensurate with the actual calculated inflation.

To better reflect the original impact of civil penalties, the 2015 Act “resets” the inflation calculations by excluding prior inflationary adjustments under the Inflation Adjustment Act. To do this, the 2015 Act requires agencies to identify, for each penalty, the year that Congress originally enacted the maximum penalty level/range of minimum and maximum penalty levels or the year that the agency last adjusted the penalty amount other than to pursuant to the Inflation Adjustment Act, and the corresponding penalty amount(s). The 2015 Act then requires agencies to perform an initial “catch-up” adjustment, using the original amounts of civil penalties as a baseline, so that the 2016 penalty levels are equal, in real terms, to the penalty amounts as they were originally established.

Pursuant to the 2015 Act, DHS undertook a review of the civil penalties that DHS and its components administer. This rule sets forth the initial “catch-up” adjustment for all civil penalties that DHS and its components administer. For each component, we have provided a table showing how DHS is increasing the penalties pursuant to the 2015 Act. The table contains the following information:

• In the first column (penalty name), we provide a description of the penalty.

• In the second column (citation), we provide the statutory cite from the United States Code (U.S.C.) and the regulatory cite from the Code of Federal Regulations (CFR).

• In the third column (current penalty), we list the existing penalty in effect on November 2, 2015.

• In the fourth column (baseline penalty (year)), we provide the amount and year of the penalty as enacted by Congress or as last changed through a mechanism other than pursuant to the Inflation Adjustment Act, whichever is later.

• In the fifth column (multiplier), we list the multiplier used to adjust the penalty. The multiplier is determined by the year of enactment or last adjustment of the penalty. The multiplier is based upon the Consumer Price Index (CPI-U) for the month of October 2015, not seasonally adjusted.2

2 OMB, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Table A, 24 February 2016. https://www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf.

• In the sixth column (preliminary new penalty), we list the amount obtained by multiplying the Baseline Penalty from column 4 with the Multiplier from column 5. This amount will be the final penalty, if, in accordance with the 2015 Act, this level does not increase penalty levels by more than 150 percent of the corresponding levels in effect on November 2, 2015.3

3 The 150 percent limitation is on the amount of the increase; therefore, the adjusted penalty levels are up to 250 percent of the levels in effect on November 2, 2015.

• In the seventh column, (adjusted new penalty), we provide the final number for the penalty. To derive this number, we compare the preliminary new penalty with the current penalty from column 3. The adjusted new penalty is the lesser of either the preliminary new penalty or an amount equal to 150 percent more than the current penalty.

Additionally, where applicable, we have also made conforming edits to regulatory text.

II. Adjustments by Component

In the following sections, we briefly describe the civil penalties that DHS and its components assess. We describe the nature of the penalties and discuss relevant authorities. We include tables at the end of each section, which list the individual adjustments for each penalty. We also include discussions where we believe further explanation is helpful.

A. National Protection and Programs Directorate

The National Protection and Programs Directorate (NPPD) administers only one civil penalty that the 2015 Act affects. This penalty assesses fines for violations of the Chemical Facility Anti-Terrorism Standards (CFATS), a program which regulates the security of chemical facilities that, in the discretion of the Secretary, present high levels of security risk. The CFATS program was originally established in 2007, pursuant to section 550 of the Department of Homeland Security Appropriations Act of 2007 (Pub. L. 109-295),4 and is currently located in part 27 of Title 6 of the CFR.

4 Section 550 has since been superseded by the Protecting and Securing Chemical Facilities from Terrorist Attacks Act of 2014 (Pub. L. 113-254). The new legislation codified the statutory authority for the CFATS program within Title XXI of the Homeland Security Act of 2002, as amended. See 6 U.S.C. 621 et seq.

One question that arose is how to calculate the baseline date of the CFATS penalty, which is $25,000 per day. The question arose because the 2007 legislation, which established CFATS, did not create a new penalty provision, but rather referenced an older one: 5 Section 70119(a) of Title 46. The Maritime Transportation Security Act (MTSA) (Pub. L. 107-295) was enacted in 2002 and established this penalty provision. For that reason, arguments could be made that we should index the $25,000 penalty by the 2002 CPI value (the date the MTSA penalty was established) or the 2007 CPI value (the date the CFATS program was enacted). The difference between these numbers is material—indexing the $25,000 penalty by the 2002 CPI value would yield a current penalty of $32,796 per day, while indexing the penalty by the 2007 CPI value would yield a current penalty of only $28,458 per day.

5 Section 550(d) of the Department of Homeland Security Appropriations Act of 2007 set forth the CFATS penalty, providing that “[a]ny person who violates an order issued under this section shall be liable for a civil penalty under section 70119(a) of title 46, United States Code. After promulgation of the Protecting and Securing Chemical Facilities from Terrorist Attacks Act of 2014, the relevant U.S.C. citation is 6 U.S.C. 624(b)(1), which still refers to the civil penalty section in 46 U.S.C. 70119(a).

Because the CFATS legislation did not create a new civil penalty, but rather simply referenced the existing MTSA penalty, we believe the intent of Congress was that violators of either MTSA or CFATS would face identical penalties. For this reason, we have considered the “baseline” year for the CFATS penalty to be 2002 rather than 2007, and have increased the penalty by the multiplier appropriate for that year, as shown in Table 1 below.

Table 1—CFATS Civil Penalty Adjustment Penalty name Citation Current penalty Baseline penalty *
  • (year)
  • Multiplier ** Preliminary
  • new penalty
  • [multiplier ×
  • baseline
  • penalty]
  • Adjusted new penalty
  • [increase capped at 150% more than current penalty]
  • Penalty for non-compliance with CFATS regulations 6 U.S.C. 624(b)(1);
  • 6 CFR 27.300(b)(3)
  • $25,000 per day $25,000 (2002) 1.31185 $32,796 $32,796
    * The amount of the penalty and the year of when the penalty was established or last adjusted in statute or regulation other than pursuant to the Inflation Adjustment Act of 1990. ** OMB, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Table A: 2016 Civil Monetary Penalty Catch-Up Adjustment Multiplier by Calendar Year, February 24, 2016.
    B. U.S. Customs and Border Protection

    U.S. Customs and Border Protection (CBP) assesses civil monetary penalties for certain violations of title 8 of the CFR regarding the Immigration and Nationality Act of 1952 (Pub. L. 82-414, as amended) (INA). The INA contains provisions that impose penalties on persons, including carriers and aliens, who violate specified provisions of the INA. For example, section 231(g) of the INA, codified at 8 U.S.C. 1221(g), requires that a carrier shall be fined $1,000 for each person for whom manifest information is not provided.

    CBP's relevant penalty provisions are located in numerous sections of the INA (see list below), however CBP has enumerated these penalties in regulation in one location—in 8 CFR 280.53. Below is the list of penalty provisions in the INA:

    • Section 231(g), Penalties for non-compliance with arrival and departure manifest requirements for passengers, crewmembers, or occupants transported on commercial vessels or aircraft arriving to or departing from the United States.

    • Section 234, Penalties for non-compliance with landing requirements at designated ports of entry for aircraft transporting aliens.

    • Section 240B(d), Penalties for failure to depart voluntarily.

    • Section 243(c)(1)(A), Penalties for violations of removal orders relating to aliens transported on vessels or aircraft under section 241(d) or for costs associated with removal under section 241(e).

    • Section 243(c)(1)(B), Penalties for failure to remove alien stowaways under section 241(d)(2).

    • Section 251(d), Penalties for failure to report an illegal landing or desertion of alien crewmen, and for each alien not reported on arrival or departure manifest or lists required in accordance with section 251 and penalties for use of alien crewmen for longshore work in violation of section 251(d).

    • Section 254(a), Penalties for failure to control, detain, or remove alien crewmen.

    • Section 255, Penalties for employment on passenger vessels of aliens afflicted with certain disabilities.

    • Section 256, Penalties for discharge of alien crewmen.

    • Section 257, Penalties for bringing into the United States alien crewmen with intent to evade immigration laws.

    • Section 271(a), Penalties for failure to prevent the unauthorized landing of aliens.

    • Section 272(a), Penalties for bringing to the United States aliens subject to denial of admission on a health-related ground.

    • Section 273(b), Penalties for bringing to the United States aliens without required documentation.

    • Section 274D, Penalties for failure to depart.

    • Section 275(b), Penalties for improper entry.

    We note, for reference, that CBP also assesses certain civil monetary penalties for customs violations under title 19 of the CFR. CBP assesses those penalties under the Tariff Act of 1930, as amended, but as we discussed above, the 2015 Act specifically exempts Tariff Act penalties from the inflation adjustment requirements in the 2015 Act. For that reason, we have not listed those title 19 penalties in the below table of CBP penalty adjustments.

    Under this rule, the current penalties continue to be applicable with regard to violations that occurred on or before November 2, 2015, the date of enactment of the 2015 Act. In Table 2 below, we provide the penalties that we are adjusting in accordance with the 2015 Act, where the associated violations occurred after November 2, 2015.

    Table 2—U.S. Customs and Border Protection Civil Penalties Adjustments Penalty name Citation Current penalty Baseline penalty *
  • (year)
  • Multiplier ** Preliminary new penalty
  • [multiplier × baseline
  • penalty]
  • Adjusted new penalty
  • [increase capped at 150% more than current penalty]
  • Penalties for non-compliance with arrival and departure manifest requirements for passengers, crewmembers, or occupants transported on commercial vessels or aircraft arriving to or departing from the United States 8 U.S.C. 1221(g)
  • 8 CFR 280.53(c)(1) (INA section 231(g))
  • $1,100 $1,000 (2002) 1.31185 $1,312 $1,312
    Penalties for non-compliance with landing requirements at designated ports of entry for aircraft transporting aliens 8 U.S.C. 1224
  • 8 CFR 280.53(c)(2) (INA section 234)
  • $3,200 $2,000 (1990) 1.78156 $3,563 $3,563
    Penalties for failure to depart voluntarily 8 U.S.C. 1229c(d)
  • 8 CFR 280.53(c)(3) (INA section 240B(d))
  • $1,100-$5,500 $1,000-$5,000 (1996) 1.50245 $1,502-$7,512 $1,502-$7,512
    Penalties for violations of removal orders relating to aliens transported on vessels or aircraft under section 241(d) of the INA, or for costs associated with removal under section 241(e) of the INA 8 U.S.C. 1253(c)(1)(A)
  • 8 CFR 280.53(c)(4) (INA section 243(c)(1)(A))
  • $2,200 $2,000 (1996) 1.50245 $3,005 $3,005
    Penalties for failure to remove alien stowaways under section 241(d)(2) of the INA 8 U.S.C. 1253(c)(1)(B)
  • 8 CFR 280.53(c)(4) (INA section 243(c)(1)(B))
  • $5,500 $5,000 (1996) 1.50245 $7,512 $7,512
    Penalties for failure to report an illegal landing or desertion of alien crewmen, and for each alien not reported on arrival or departure manifest or lists required in accordance with section 251 of the INA 8 U.S.C. 1281(d)
  • 8 CFR 280.53(c)(5) (INA section 251(d))
  • $320 for each alien $200 for each alien (1990) 1.78156 $356 for each alien $356 for each alien
    Penalties for use of alien crewmen for longshore work in violation of section 251(d) of the INA 8 U.S.C. 1281(d)
  • 8 CFR 280.53(c)(5) (INA section 251(d))
  • $7,500 $5,000 (1990) 1.78156 $8,908 $8,908
    Penalties for failure to control, detain, or remove alien crewmen 8 U.S.C. 1284(a)
  • 8 CFR 280.53(c)(6) (INA section 254(a))
  • $750-$4,300 $500-$3000 (1990) 1.78156 $891-$5,345 $891-$5,345
    Penalties for employment on passenger vessels of aliens afflicted with certain disabilities 8 U.S.C. 1285
  • 8 CFR 280.53(c)(7) (INA section 255)
  • $1,100 $1,000 (1990) 1.78156 $1,782 $1,782
    Penalties for discharge of alien crewmen 8 U.S.C. 1286
  • 8 CFR 280.53(c)(8) (INA section 256)
  • $1,500-$4,300 $1,500-$3,000 (1990) 1.78156 $2,672-$5,345 $2,672-$5,345
    Penalties for bringing into the United States alien crewmen with intent to evade immigration laws 8 U.S.C. 1287
  • 8 CFR 280.53(c)(9) (INA section 257)
  • $16,000 $10,000 (1990) 1.78156 $17,816 $17,816
    Penalties for failure to prevent the unauthorized landing of aliens 8 U.S.C. § 1321(a)
  • 8 CFR 280.53(c)(10) (INA section 271(a))
  • $4,300 $3,000 (1990) 1.78156 $5,345 $5,345
    Penalties for bringing to the United States aliens subject to denial of admission on a health-related ground 8 U.S.C. § 1322(a)
  • 8 CFR 280.53(c)(11) (INA section 272(a))
  • $4,300 $3,000 (1990) 1.78156 $5,345 $5,345
    Penalties for bringing to the United States aliens without required documentation 8 U.S.C. § 1323(b)
  • 8 CFR 280.53(c)(12) (INA section 273(b))
  • $4,300 $3,000 (1990) 1.78156 $5,345 $5,345
    Penalties for failure to depart 8 U.S.C. 1324d
  • 8 CFR 280.53(c)(13) (INA section 274D)
  • $550 $500 (1996) 1.50245 $751 $751
    Penalties for improper entry 8 U.S.C. § 1325(b)
  • 8 CFR 280.53(c)(14) (INA section 275(b))
  • $55-275 $50-$250 (1996) 1.50245 $75-$376 $75-$376
    * The amount of the penalty and the year of when the penalty was established or last adjusted in statute or regulation other than pursuant to the Inflation Adjustment Act of 1990. ** OMB, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Table A: 2016 Civil Monetary Penalty Catch-Up Adjustment Multiplier by Calendar Year, February 24, 2016.
    C. Immigration and Customs Enforcement

    Immigration and Customs Enforcement (ICE) assesses civil monetary penalties for certain employment-related violations arising from the INA. ICE's civil penalties are located in title 8 of the CFR.

    There are three different sections in the INA that impose civil monetary penalties for violations of the laws that relate to employment actions (sections 274A, 274B, and 274C). ICE has primary enforcement responsibilities for two of these civil penalty provisions (sections 274A and 274C), and the Department of Justice (DOJ) has enforcement responsibilities for one of these civil penalty provisions (section 274B). The INA, in sections 274A and 274C, provides for imposition of civil penalties for various specified unlawful acts pertaining to the employment eligibility verification process (Form I-9, Employment Eligibility Verification) and the employment of unauthorized aliens. These penalties cover, among other things, the knowing employment of unauthorized aliens and the failure to comply with the employment verification requirements relating to completion of the Form I-9. ICE assesses and imposes civil monetary penalties with respect to employer sanctions under section 274A of the INA and 8 CFR part 274a. Similarly, ICE imposes civil penalties for specified actions relating to immigration-related document fraud under section 274C of the INA and 8 CFR part 270. We note that while ICE is updating the penalty amounts in 8 CFR part 270, ICE has not assessed these penalties in recent years.

    Because both DHS and DOJ implement the three employment-related penalty sections in the INA, both Departments are codifying the civil penalty amounts in their implementing regulations. Pursuant to the authority of the Inflation Adjustment Act and before the creation of DHS, DOJ previously adjusted the civil monetary penalties for inflation, increasing the specific amounts stated in sections 274A, 274B, and 274C of the INA. See 64 FR 7066 (Feb. 12, 1999) and 64 FR 47099 (Aug. 30, 1999). Both agencies issued a joint rulemaking to update the penalties in 2008. See 73 FR 10130 (Feb. 26, 2008). Today, as in 2008, the division of responsibilities between the Secretary of Homeland Security and the Attorney General requires action by both Departments in order to effectuate a further adjustment of the civil penalties. The minimum and maximum civil penalty amounts for each violation will necessarily be the same whether DHS or DOJ imposes the penalty. See 8 CFR 274a.10 and 270.3; 28 CFR 68.52(c) and (e).

    In this rule, DHS is amending 8 CFR parts 270 and 274a of the DHS regulations to incorporate the revised schedule of civil penalties, as adjusted for inflation according to the statutory formula described above. We note that DOJ is similarly revising regulations in 28 CFR part 68 (which correspond to the penalties in 8 CFR part 270) in a separate civil penalty adjustment rulemaking.

    Under this rule, the current penalties continue to be applicable with regard to violations that occurred on or before November 2, 2015, the date of enactment of the 2015 Act. Table 3 below lays out the changes to the penalties, where the associated violations occurred after November 2, 2015.

    Table 3—Immigration and Customs Enforcement Civil Penalties Adjustments Penalty name Citation Current
  • penalty
  • Baseline
  • penalty *
  • (year)
  • Multiplier ** Preliminary new penalty
  • [multiplier × baseline
  • penalty]
  • Adjusted new penalty
  • [increase capped at 150% more than current
  • penalty]
  • Civil penalties for violation of Immigration and Naturalization Act (INA) sections 274C(a)(1)-(a)(4), penalty for first offense 8 CFR 270.3(b)(1)(ii)(A) $375-$3,200 $250-$2,000 (1990) 1.78156 $445-$3,563 $445-$3,563 Civil penalties for violation of Immigration and Naturalization Act (INA) sections 274C(a)(5)-(a)(6), penalty for first offense 8 CFR 270.3(b)(1)(ii)(B) $275-$2,200 $250-$2,000 (1996) 1.50245 $376-$3,005 $376-$3,005 Civil penalties for violation of Immigration and Naturalization Act (INA) sections 274C(a)(1)-(a)(4), penalty for subsequent offenses 8 CFR 270.3(b)(1)(ii)(C) $3,200-$6,500 $2,000-$5,000 (1990) 1.78156 $3,563-$8,908 $3,563-$8,908 Civil penalties for violation of Immigration and Naturalization Act (INA) sections 274C(a)(5)-(a)(6), penalty for subsequent offenses 8 CFR 270.3(b)(1)(ii)(D) $2,200-$5,500 $2,000-$5,000 (1996) 1.50245 $3,005-$7,512 $3,005-$7,512 Violation/prohibition of indemnity bonds 8 CFR 274a.8(b) $1,100 $1,000 (1986) 2.15628 $2,156 $2,156 Civil penalties for knowingly hiring, recruiting, referral, or retention of unauthorized aliens—Penalty for first offense (per unauthorized alien) 8 CFR 274a.10(b)(1)(ii)(A) $375-$3,200 $250-$2,000 (1986) 2.15628 $539-$4,313 $539-$4,313 Penalty for second offense (per unauthorized alien) 8 CFR 274a.10(b)(1)(ii)(B) $3,200-$6,500 $2,000-$5,000 (1986) 2.15628 $4,313-$10,781 $4,313-$10,781 Penalty for third or subsequent offense (per unauthorized alien) 8 CFR 274a.10(b)(1)(ii)(C) $4,300-$16,000 $3,000-$10,000 (1986) 2.15628 $6,469-$21,563 $6,469-$21,563 Civil penalties for I-9 paperwork violations 8 CFR 274a.10(b)(2) $110-$1,100 $100-$1,000 (1986) 2.15628 $216-$2,156 $216-$2,156 * The amount of the penalty and the year of when the penalty was established or last adjusted in statute or regulation other than pursuant to the Inflation Adjustment Act of 1990. ** OMB, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Table A: 2016 Civil Monetary Penalty Catch-Up Adjustment Multiplier by Calendar Year, February 24, 2016.
    D. U.S. Coast Guard

    The Coast Guard is adjusting for inflation the penalties in the table in part 27 of title 33 of the CFR. That table identifies the statutes that provide the Coast Guard with civil monetary penalty authority and sets out the inflation-adjusted maximum penalty that the Coast Guard may impose pursuant to each statutory provision. The new table in this regulation provides the current maximum penalty for violations that occurred after November 2, 2015. The penalties in effect for violations on or prior to November 2, 2015 can be found in prior CFR versions that pertain to the date in which the violation occurred. Since the Coast Guard had adjusted the table in part 27 for inflation on several occasions, not just one table can be used for all violations on or before November 2, 2015.

    The Coast Guard is authorized to assess close to 150 penalties involving maritime safety and security and environmental stewardship that are critical to the continued success of Coast Guard missions. Various statutes in Title 14, 16, 19, 33, 42, 46, and 49 of the U.S.C. authorize these penalties. Titles 33 and 46 authorize the vast majority of these penalties as these statutes deal with navigation, navigable waters, and shipping.

    Under title 33 of the U.S.C., the Coast Guard assesses penalties with respect to bridges, marine events, pollution prevention, oil discharges, sanitation, international navigation, and other environmental stewardship responsibilities. Most notably, the Coast Guard has express joint authority with the Environmental Protection Agency (EPA) to assess penalties in order to enforce the Federal Water Pollution Control Act (Clean Water Act) (CWA), as amended by the Oil Pollution Act of 1990 (OPA 90) (33 U.S.C. 1321 et seq.), and MARPOL Protocol, Annex VI (33 U.S.C. 1908). Penalties under the CWA and OPA 90 relate to the discharge of oil or a hazardous substance from a vessel or facility into or upon the navigable waters of the United States, adjoining shoreline, or into or upon the waters of the contiguous zone. Both agencies may assess penalties for discharges of oil or hazardous substances in connection with activities under the Outer Continental Shelf Lands Act or the Deepwater Port Act. Further, both agencies may assess penalties if a person fails to take mitigation or removal action, or fails to comply with an order of the Federal On-Scene Coordinator. The Coast Guard and EPA delineate enforcement boundaries within each region. Under the Act to Prevent Pollution from Ships (APPS) (33 U.S.C. 1901 et seq.), both of these agencies may assess penalties for any violation of Annex VI, including but not limited to the carriage and use of low-sulfur fuel oil, and vessel engine and emission requirements. While the EPA focuses primarily on engine permit requirements and shoreside facility compliance, the Coast Guard may refer other matters to the EPA for enforcement in accordance with established protocol.

    Under title 46 of the U.S.C., the Coast Guard assesses penalties with respect to vessel inspections, vessel operations, manning and training on vessels, marine casualty reporting, drug testing, pilotage, vessel identification, and other aspects of personnel and operations involved in the shipping industry. The majority of civil penalties under this title relate to vessel compliance, which includes general inspection requirements, crew requirements and limitations, and operational requirements of the vessel to engage in a commercial enterprise.

    Beyond title 33 and title 46 of the U.S.C., the Coast Guard assesses penalties related to the organization and management of the Coast Guard, aquatic species conservation, obstruction of revenue, and hazardous substances and materials. Most notably, the Coast Guard has joint authority with EPA under title 42 of the U.S.C. to assess penalties for hazardous substances. Under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) (42 U.S.C. 9601 et seq.), the Coast Guard may assess penalties for the failure to meet the notification requirements, failure to provide evidence of financial responsibility, or failure to follow an administrative order, among other violations. The Coast Guard has the primary responsibility to enforce the laws on navigational waterways.

    As evidenced by the table below, the current inflation adjustment imposes a substantial change in many of the civil penalties administered by the Coast Guard. Part of the reason for the changes are that the enactment dates for penalties assessed by the Coast Guard vary widely, spanning from 1935 to 2014. Furthermore, the penalty amounts vary widely, spanning up to $250,000. Under the 2015 Act, and as mentioned elsewhere in this preamble, Congress has created a straightforward method for calculating the amount of the inflation allowable for each penalty.

    While the increases due to inflation are, for some penalties, substantial, not all penalties will be equivalent to their original value in real terms. Pursuant to the 2015 Act, the Coast Guard cannot increase any penalty by more than 150% of the previously adjusted penalty. As the Coast Guard last adjusted penalties for inflation on June 2, 2011 (76 FR 31831), it cannot adjust any penalty by more than 150% of the amount set by the final rule of June 2, 2011. After the Coast Guard used the new method and applied the 150% cap, they increased the penalties by an amount of 3% to 150% above the last adjustment. Of those penalties that the Coast Guard is increasing in this rulemaking, approximately 23 of the penalties are increasing more than 100% from their 2011 value, and the 2015 Act limits the amount that they can increase to 150% of the 2011 value. All of the penalties that Congress or the Coast Guard enacted prior to 1980 are increasing more than 100%. This is due to the great difference between the CPI-U level from the years enacted and the CPI-U from October 2015.

    There were three penalties that decreased in value from their previous amounts. These penalties (codified in 46 U.S.C. App. 1505(a)(2), 46 U.S.C. App. 1805(c)(2), and 42 U.S.C. 12151(c)) showed significant decreases. These changes occurred because Congress recodified these penalties in 2006 after the Coast Guard adjusted them for inflation. Using the 2006 recodification as the new statutory baseline, the penalty amounts declined significantly in this rulemaking from their current values.

    Finally, we are adding several penalties to the existing table in 33 CFR 27.3 that had been inadvertently omitted from regulatory text. These penalties include a penalty for intentional interference with a broadcast (codified at 14 U.S.C. 88(e)), a clean hulls penalty for recreational and commercial vessels (33 U.S.C. 3852(c)), vessel documentation relating to mobile offshore drilling units (46 U.S.C. 12151(a)(2), and hazardous material training penalties (49 U.S.C. 5123(a)(3)).

    Table 4—U.S. Coast Guard Civil Penalties Adjustments Penalty name Citation Current
  • penalty
  • Baseline
  • penalty *
  • (year)
  • (statutory citation)
  • Multiplier ** Preliminary new penalty
  • [multiplier × baseline
  • penalty]
  • Adjusted new penalty
  • [increase capped at 150% more than current
  • penalty]
  • Saving Life and Property 14 U.S.C. 88(c) $10,000 $10,000
  • (2014)
  • (Pub. L. 113-281)
  • 1.00171 $10,017 $10,017
    Saving Life and Property; Intentional Interference with Broadcast 14 U.S.C. 88(e) 1,000 $1,000
  • (2012)
  • (Pub. L. 112-213)
  • 1.02819 1,028 1,028
    Confidentiality of Medical Quality Assurance Records (first offense) 14 U.S.C. 645(i); 33 CFR 27.3 4,000 $3,000
  • (1992)
  • (Pub. L. 102-587)
  • 1.67728 5,032 5,032
    Confidentiality of Medical Quality Assurance Records (subsequent offenses) 14 U.S.C. 645(i); 33 CFR 27.3 30,000 $20,000
  • (1992)
  • (Pub. L. 102-587)
  • 1.67728 33,546 33,546
    Aquatic Nuisance Species in Waters of the United States 16 U.S.C. 4711(g)(1); 33 CFR 27.3 35,000 $25,000
  • (1996)
  • (Pub. L. 104-332)
  • 1.50245 37,561 37,561
    Obstruction of Revenue Officers by Masters of Vessels 19 U.S.C. 70; 33 CFR 27.3 3,000 $2,000
  • (1935)
  • 17.36044 34,721 7,500
    Obstruction of Revenue Officers by Masters of Vessels—Minimum Penalty 19 U.S.C. 70; 33 CFR 27.3 700 $500
  • (1935)
  • 17.36044 8,680 1,750
    Failure to Stop Vessel When Directed; Master, Owner, Operator or Person in Charge 19 U.S.C. 1581(d) 5,000 $5,000
  • (1930)
  • N/A N/A *** 5,000
    Failure to Stop Vessel When Directed; Master, Owner, Operator or Person in Charge—Minimum Penalty 19 U.S.C. 1581(d) 1,000 $1,000
  • (1930)
  • N/A N/A *** 1,000
    Anchorage Ground/Harbor Regulations General 33 U.S.C. 471; 33 CFR 27.3 110 $10,000
  • (2010)
  • (Pub. L. 111-281)
  • 1.08745 10,875 10,875
    Anchorage Ground/Harbor Regulations St. Mary's river 33 U.S.C. 474; 33 CFR 27.3 300 $200
  • (1946)
  • (11 FR 7875)
  • 11.43452 2,287 750
    Bridges/Failure to Comply with Regulations 33 U.S.C. 495(b); 33 CFR 27.3 25,000 $25,000
  • (2008)
  • (Pub. L. 108-293)
  • 1.09819 27,455 27,455
    Bridges/Drawbridges 33 U.S.C. 499(c); 33 CFR 27.3 25,000 $25,000
  • (2008)
  • (Pub. L. 108-293)
  • 1.09819 27,455 27,455
    Bridges/Failure to Alter Bridge Obstructing Navigation 33 U.S.C. 502(c); 33 CFR 27.3 25,000 $25,000
  • (2008)
  • (Pub. L. 108-293)
  • 1.09819 27,455 27,455
    Bridges/Maintenance and Operation 33 U.S.C. 533(b); 33 CFR 27.3 25,000 $25,000
  • (2008)
  • (Pub. L. 108-293)
  • 1.09819 27,455 27,455
    Bridge to Bridge Communication; Master, Person in Charge or Pilot 33 U.S.C. 1208(a); 33 CFR 27.3 800 $500
  • (1971)
  • (Pub. L. 92-63)
  • 5.81511 2,908 2,000
    Bridge to Bridge Communication; Vessel 33 U.S.C. 1208(b); 33 CFR 27.3 800 $500
  • (1971)
  • (Pub. L. 92-63)
  • 5.81511 2,908 2,000
    PWSA Regulations 33 U.S.C. 1232(a); 33 CFR 27.3 40,000 $25,000
  • (1978)
  • (Pub. L. 95-474)
  • 3.54453 88,613 88,613
    Vessel Navigation: Regattas or Marine Parades; Unlicensed Person in Charge 33 U.S.C. 1236(b); 33 CFR 27.3 8,000 $5,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 8,908 8,908
    Vessel Navigation: Regattas or Marine Parades; Owner Onboard Vessel 33 U.S.C. 1236(c); 33 CFR 27.3 8,000 $5,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 8,908 8,908
    Vessel Navigation: Regattas or Marine Parades; Other Persons 33 U.S.C. 1236(d); 33 CFR 27.3 3,000 $2,500
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 4,454 4,454
    Oil/Hazardous Substances: Discharges (Class I per violation) 33 U.S.C. 1321(b)(6)(B)(i); 33 CFR 27.3 15,000 $10,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 17,816 17,816
    Oil/Hazardous Substances: Discharges (Class I total under paragraph) 33 U.S.C. 1321(b)(6)(B)(i); 33 CFR 27.3 40,000 $25,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 44,539 44,539
    Oil/Hazardous Substances: Discharges (Class II per day of violation) 33 U.S.C. 1321(b)(6)(B)(ii); 33 CFR 27.3 15,000 $10,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 17,816 17,816
    Oil/Hazardous Substances: Discharges (Class II total under paragraph) 33 U.S.C. 1321(b)(6)(B)(ii); 33 CFR 27.3 190,000 $125,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 222,695 222,695
    Oil/Hazardous Substances: Discharges (per day of violation) Judicial Assessment 33 U.S.C. 1321(b)(7)(A); 33 CFR 27.3 40,000 $25,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 44,539 44,539
    Oil/Hazardous Substances: Discharges (per barrel of oil or unit discharged) Judicial Assessment 33 U.S.C. 1321(b)(7)(A); 33 CFR 27.3 1,100 $1,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 1,782 1,782
    Oil/Hazardous Substances: Failure to Carry Out Removal/Comply With Order (Judicial Assessment) 33 U.S.C. 1321(b)(7)(B); 33 CFR 27.3 40,000 $25,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 44,539 44,539
    Oil/Hazardous Substances: Failure to Comply with Regulation Issued Under 1321(j) (Judicial Assessment) 33 U.S.C. 1321(b)(7)(C); 33 CFR 27.3 40,000 $25,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 44,539 44,539
    Oil/Hazardous Substances: Discharges, Gross Negligence (per barrel of oil or unit discharged) Judicial Assessment 33 U.S.C. 1321(b)(7)(D); 33 CFR 27.3 4,000 $3,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 5,345 5,345
    Oil/Hazardous Substances: Discharges, Gross Negligence—Minimum Penalty (Judicial Assessment) 33 U.S.C. 1321(b)(7)(D); 33 CFR 27.3 130,000 $100,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 178,156 178,156
    Marine Sanitation Devices; Operating 33 U.S.C. 1322(j); 33 CFR 27.3 3,000 $2,000
  • (1972)
  • (Pub. L. 92-500)
  • 5.62265 11,245 7,500
    Marine Sanitation Devices; Sale or Manufacture 33 U.S.C. 1322(j); 33 CFR 27.3 8,000 $5,000
  • (1972)
  • (Pub. L. 92-500)
  • 5.62265 28,113 20,000
    International Navigation Rules; Operator 33 U.S.C. 1608(a); 33 CFR 27.3 8,000 $5,000
  • (1980)
  • (Pub. L. 96-591)
  • 2.80469 14,023 14,023
    International Navigation Rules; Vessel 33 U.S.C. 1608(b); 33 CFR 27.3 8,000 $5,000
  • (1980)
  • (Pub. L. 96-591)
  • 2.80469 14,023 14,023
    Pollution from Ships; General 33 U.S.C. 1908(b)(1); 33 CFR 27.3 40,000 $25,000
  • (1980)
  • (Pub. L. 96-478)
  • 2.80469 70,117 70,117
    Pollution from Ships; False Statement 33 U.S.C. 1908(b)(1); 33 CFR 27.3 8,000 $5,000
  • (1980)
  • (Pub. L. 96-478)
  • 2.80469 14,023 14,023
    Inland Navigation Rules; Operator 33 U.S.C. 2072(a); 33 CFR 27.3 8,000 $5,000
  • (1980)
  • (Pub. L. 96-591)
  • 2.80469 14,023 14,023
    Inland Navigation Rules; Vessel 33 U.S.C. 2072(b); 33 CFR 27.3 8,000 $5,000
  • (1980)
  • (Pub. L. 96-591)
  • 2.80469 14,023 14,023
    Shore Protection; General 33 U.S.C. 2609(a); 33 CFR 27.3 40,000 $25,000
  • (1988)
  • (Pub. L. 100-688)
  • 1.97869 49,467 49,467
    Shore Protection; Operating Without Permit 33 U.S.C. 2609(b); 33 CFR 27.3 15,000 $10,000
  • (1988)
  • (Pub. L. 100-688)
  • 1.97869 19,787 19,787
    Oil Pollution Liability and Compensation 33 U.S.C. 2716a(a); 33 CFR 27.3 40,000 $25,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 44,539 44,539
    Clean Hulls 33 U.S.C. 3852(a)(1)(A); 33 CFR 27.3 37,500 $37,500
  • (2010)
  • (Pub. L. 111-281)
  • 1.08745 40,779 40,779
    Clean Hulls—related to false statements 33 U.S.C. 3852(a)(1)(A); 33 CFR 27.3 50,000 $50,000
  • (2010)
  • (Pub. L. 111-281)
  • 1.08745 54,373 54,373
    Clean Hulls—Recreational Vessel 33 U.S.C. 3852(c); 33 CFR 27.3 5,000 $5,000
  • (2010)
  • (Pub. L. 111-281)
  • 1.08745 5,437 5,437
    Hazardous Substances, Releases, Liability, Compensation (Class I) 42 U.S.C. 9609(a); 33 CFR 27.3 35,000 $25,000
  • (1986)
  • (Pub. L. 99-499)
  • 2.15628 53,907 53,907
    Hazardous Substances, Releases, Liability, Compensation (Class II) 42 U.S.C. 9609(b); 33 CFR 27.3 35,000 $25,000
  • (1986)
  • (Pub. L. 99-499)
  • 2.15628 53,907 53,907
    Hazardous Substances, Releases, Liability, Compensation (Class II subsequent offense) 42 U.S.C. 9609(b); 33 CFR 27.3 100,000 $75,000
  • (1986)
  • (Pub. L. 99-499)
  • 2.15628 161,721 161,721
    Hazardous Substances, Releases, Liability, Compensation (Judicial Assessment) 42 U.S.C. 9609(c); 33 CFR 27.3 35,000 $25,000
  • (1986)
  • (Pub. L. 99-499)
  • 2.15628 53,907 53,907
    Hazardous Substances, Releases, Liability, Compensation (Judicial Assessment subsequent offense) 42 U.S.C. 9609(c); 33 CFR 27.3 100,000 $75,000
  • (1986)
  • (Pub. L. 99-499)
  • 2.15628 161,721 161,721
    Safe Containers for International Cargo 46 U.S.C. App 1505(a)(2) (codified as 46 USC 80509); 33 CFR 27.3 8,000 $5,000
  • (2006)
  • (Pub. L. 109-304)
  • 1.17858 5,893 5,893
    Suspension of Passenger Service 46 U.S.C. App 1805(c)(2) (codified 46 USC 70305); 33 CFR 27.3 70,000 $50,000
  • (2006)
  • (Pub. L. 109-304; 46 USC 70305)
  • 1.17858 58,929 58,929
    Vessel Inspection or Examination Fees 46 U.S.C. 2110(e); 33 CFR 27.3 8,000 $5,000
  • (1990)
  • (Pub. L. 101-508)
  • 1.78156 8,908 8,908
    Alcohol and Dangerous Drug Testing 46 U.S.C. 2115; 33 CFR 27.3 7,000 $5,000
  • (1998)
  • (Pub. L. 105-383)
  • 1.45023 7,251 7,251
    Negligent Operations: Recreational Vessels 46 U.S.C. 2302(a); 33 CFR 27.3 6,000 $5,000
  • (2002)
  • (Pub. L. 107-295)
  • 1.31185 6,559 6,559
    Negligent Operations: Other Vessels 46 U.S.C. 2302(a); 33 CFR 27.3 30,000 $25,000
  • (2002)
  • (Pub. L. 107-295)
  • 1.31185 32,796 32,796
    Operating a Vessel While Under the Influence of Alcohol or a Dangerous Drug 46 U.S.C. 2302(c)(1); 33 CFR 27.3 7,000 $5,000
  • (1998)
  • (Pub. L. 105-383)
  • 1.45023 7,251 7,251
    Vessel Reporting Requirements: Owner, Charterer, Managing Operator, or Agent 46 U.S.C. 2306(a)(4); 33 CFR 27.3 8,000 $5,000
  • (1984)
  • (Pub. L. 98-498)
  • 2.25867 11,293 11,293
    Vessel Reporting Requirements: Master 46 U.S.C. 2306(b)(2); 33 CFR 27.3 1,100 $1,000
  • (1984)
  • (Pub. L. 98-498)
  • 2.25867 2,259 2,259
    Immersion Suits 46 U.S.C. 3102(c)(1); 33 CFR 27.3 8,000 $5,000
  • (1984)
  • (Pub. L. 98-623)
  • 2.25867 11,293 11,293
    Inspection Permit 46 U.S.C. 3302(i)(5); 33 CFR 27.3 1,100 $1,000
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 2,355 2,355
    Vessel Inspection; General 46 U.S.C. 3318(a); 33 CFR 27.3 8,000 $5,000
  • (1984)
  • (Pub. L. 98-498)
  • 2.25867 11,293 11,293
    Vessel Inspection; Nautical School Vessel 46 U.S.C. 3318(g); 33 CFR 27.3 8,000 $5,000
  • (1984)
  • (Pub. L. 98-498)
  • 2.25867 11,293 11,293
    Vessel Inspection; Failure to Give Notice IAW 3304(b) 46 U.S.C. 3318(h); 33 CFR 27.3 1,100 $1,000
  • (1984)
  • (Pub. L. 98-498)
  • 2.25867 2,259 2,259
    Vessel Inspection; Failure to Give Notice IAW 3309(c) 46 U.S.C. 3318(i); 33 CFR 27.3 1,100 $1,000
  • (1984)
  • (Pub. L. 98-498)
  • 2.25867 2,259 2,259
    Vessel Inspection; Vessel ≥1600 Gross Tons 46 U.S.C. 3318(j)(1); 33 CFR 27.3 15,000 $10,000
  • (1984)
  • (Pub. L. 98-498)
  • 2.25867 22,587 22,587
    Vessel Inspection; Vessel <1600 Gross Tons 46 U.S.C. 3318(j)(1); 33 CFR 27.3 3,000 $2,000
  • (1984)
  • (Pub. L. 98-498)
  • 2.25867 4,517 4,517
    Vessel Inspection; Failure to Comply with 3311(b) 46 U.S.C. 3318(k); 33 CFR 27.3 15,000 $10,000
  • (1984)
  • (Pub. L. 98-498)
  • 2.25867 22,587 22,587
    Vessel Inspection; Violation of 3318(b)-3318(f) 46 U.S.C. 3318(l); 33 CFR 27.3 8,000 $5,000
  • (1984)
  • (Pub. L. 98-498)
  • 2.25867 11,293 11,293
    List/count of Passengers 46 U.S.C. 3502(e); 33 CFR 27.3 110 $100
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 235 235
    Notification to Passengers 46 U.S.C. 3504(c); 33 CFR 27.3 15,000 $10,000
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 23,548 23,548
    Notification to Passengers; Sale of Tickets 46 U.S.C. 3504(c); 33 CFR 27.3 800 $500
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 1,177 1,177
    Copies of Laws on Passenger Vessels; Master 46 U.S.C. 3506; 33 CFR 27.3 300 $200
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 471 471
    Liquid Bulk/Dangerous Cargo 46 U.S.C. 3718(a)(1); 33 CFR 27.3 40,000 $25,000
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 58,871 58,871
    Uninspected Vessels 46 U.S.C. 4106; 33 CFR 27.3 8,000 $5,000
  • (1988)
  • (Pub. L. 100-540)
  • 1.97869 9,893 9,893
    Recreational Vessels (maximum for related series of violations) 46 U.S.C. 4311(b)(1); 33 CFR 27.3 300,000 $250,000
  • (2004)
  • (Pub. L. 108-293)
  • 1.24588 311,470 311,470
    Recreational Vessels; Violation of 4307(a) 46 U.S.C. 4311(b)(1); 33 CFR 27.3 6,000 $5,000
  • (2004)
  • (Pub. L. 108-293)
  • 1.24588 6,229 6,229
    Recreational vessels 46 U.S.C. 4311(c); 33 CFR 27.3 1,100 $1,000
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 2,355 2,355
    Uninspected Commercial Fishing Industry Vessels 46 U.S.C. 4507; 33 CFR 27.3 8,000 $5,000
  • (1988)
  • (Pub. L. 100-424)
  • 1.97869 9,893 9,893
    Abandonment of Barges 46 U.S.C. 4703; 33 CFR 27.3 1,100 $1,000
  • (1992)
  • (Pub. L. 102-587)
  • 1.67728 1,677 1,677
    Load Lines 46 U.S.C. 5116(a); 33 CFR 27.3 8,000 $5,000
  • (1986)
  • (Pub. L. 99-509)
  • 2.15628 10,781 10,781
    Load Lines; Violation of 5112(a) 46 U.S.C. 5116(b); 33 CFR 27.3 15,000 $10,000
  • (1986)
  • (Pub. L. 99-509)
  • 2.15628 21,563 21,563
    Load Lines; Violation of 5112(b) 46 U.S.C. 5116(c); 33 CFR 27.3 8,000 $5,000
  • (1986)
  • (Pub. L. 99-509)
  • 2.15628 10,781 10,781
    Reporting Marine Casualties 46 U.S.C. 6103(a); 33 CFR 27.3 35,000 $25,000
  • (1996)
  • (Pub. L. 104-324)
  • 1.50245 37,561 37,561
    Reporting Marine Casualties; Violation of 6104 46 U.S.C. 6103(b); 33 CFR 27.3 8,000 $5,000
  • (1988)
  • (Pub. L. 100-424)
  • 1.97869 9,893 9,893
    Manning of Inspected Vessels; Failure to Report Deficiency in Vessel Complement 46 U.S.C. 8101(e); 33 CFR 27.3 1,100 $1,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 1,782 1,782
    Manning of Inspected Vessels 46 U.S.C. 8101(f); 33 CFR 27.3 15,000 $10,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 17,816 17,816
    Manning of Inspected Vessels; Employing or Serving in Capacity not Licensed by USCG 46 U.S.C. 8101(g); 33 CFR 27.3 15,000 $10,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 17,816 17,816
    Manning of Inspected Vessels; Freight Vessel <100 GT, Small Passenger Vessel, or Sailing School Vessel 46 U.S.C. 8101(h); 33 CFR 27.3 1,100 $1,000
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 2,355 2,355
    Watchmen on Passenger Vessels 46 U.S.C. 8102(a) 1,100 $1,000
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 2,355 2,355
    Citizenship Requirements 46 U.S.C. 8103(f) 800 $500
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 1,177 1,177
    Watches on Vessels; Violation of 8104(a) or (b) 46 U.S.C. 8104(i) 15,000 $10,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 17,816 17,816
    Watches on Vessels; Violation of 8104(c), (d), (e), or (h) 46 U.S.C. 8104(j) 15,000 $10,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 17,816 17,816
    Staff Department on Vessels 46 U.S.C. 8302(e) 110 $100
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 235 235
    Officer's Competency Certificates 46 U.S.C. 8304(d) 110 $100
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 235 235
    Coastwise Pilotage; Owner, Charterer, Managing Operator, Agent, Master or Individual in Charge 46 U.S.C. 8502(e) 15,000 $10,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 17,816 17,816
    Coastwise Pilotage; Individual 46 U.S.C. 8502(f) 15,000 $10,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 17,816 17,816
    Federal Pilots 46 U.S.C. 8503 40,000 $25,000
  • (1984)
  • (Pub. L. 98-557)
  • 2.25867 56,467 56,467
    Merchant Mariners Documents 46 U.S.C. 8701(d) 800 $500
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 1,177 1,177
    Crew Requirements 46 U.S.C. 8702(e) 15,000 $10,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 17,816 17,816
    Small Vessel Manning 46 U.S.C. 8906 35,000 $25,000
  • (1996)
  • (Pub. L. 104-324)
  • 1.50245 37,561 37,561
    Pilotage: Great Lakes; Owner, Charterer, Managing Operator, Agent, Master or Individual in Charge 46 U.S.C. 9308(a) 15,000 $10,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 17,816 17,816
    Pilotage: Great Lakes; Individual 46 U.S.C. 9308(b) 15,000 $10,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 17,816 17,816
    Pilotage: Great Lakes; Violation of 9303 46 U.S.C. 9308(c) 15,000 $10,000
  • (1990)
  • (Pub. L. 101-380)
  • 1.78156 17,816 17,816
    Failure to Report Sexual Offense 46 U.S.C. 10104(b) 8,000 $5,000
  • (1989)
  • (Pub. L. 101-225)
  • 1.89361 9,468 9,468
    Pay Advances to Seamen 46 U.S.C. 10314(a)(2) 800 $500
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 1,177 1,177
    Pay Advances to Seamen; Remuneration for Employment 46 U.S.C. 10314(b) 800 $500
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 1,177 1,177
    Allotment to Seamen 46 U.S.C. 10315(c) 800 $500
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 1,177 1,177
    Seamen Protection; General 46 U.S.C. 10321 7,000 $5,000
  • (1993)
  • (Pub. L. 103-206)
  • 1.63238 8,162 8,162
    Coastwise Voyages: Advances 46 U.S.C. 10505(a)(2) 7,000 $5,000
  • (1993)
  • (Pub. L. 103-206)
  • 1.63238 8,162 8,162
    Coastwise Voyages: Advances; Remuneration for Employment 46 U.S.C. 10505(b) 7,000 $5,000
  • (1993)
  • (Pub. L. 103-206)
  • 1.63238 8,162 8,162
    Coastwise Voyages: Seamen Protection; General 46 U.S.C. 10508(b) 7,000 $5,000
  • (1993)
  • (Pub. L. 103-206)
  • 1.63238 8,162 8,162
    Effects of Deceased Seamen 46 U.S.C. 10711 300 $200
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 471 471
    Complaints of Unfitness 46 U.S.C. 10902(a)(2) 800 $500
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 1,177 1,177
    Proceedings on Examination of Vessel 46 U.S.C. 10903(d) 110 $100
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 235 235
    Permission to Make Complaint 46 U.S.C. 10907(b) 800 $500
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 1,177 1,177
    Accommodations for Seamen 46 U.S.C. 11101(f) 800 $500
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 1,177 1,177
    Medicine Chests on Vessels 46 U.S.C. 11102(b) 800 $500
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 1,177 1,177
    Destitute Seamen 46 U.S.C. 11104(b) 110 $100
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 235 235
    Wages on Discharge 46 U.S.C. 11105(c) 800 $500
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 1,177 1,177
    Log Books; Master Failing to Maintain 46 U.S.C. 11303(a) 300 $200
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 471 471
    Log Books; Master Failing to Make Entry 46 U.S.C. 11303(b) 300 $200
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 471 471
    Log Books; Late Entry 46 U.S.C. 11303(c) 200 $150
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 353 353
    Carrying of Sheath Knives 46 U.S.C. 11506 80 $50
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 118 118
    Vessel Documentation 46 U.S.C. 12151(a)(1) 15,000 $15,000
  • (2012)
  • (Pub. L. 112-213)
  • 1.02819 15,423 15,423
    Documentation of Vessels—Related to Activities involving mobile offshore drilling units 46 U.S.C. 12151(a)(2) 25,000 $25,000
  • (2012)
  • (Pub. L. 112-213)
  • 1.02819 25,705 25,705
    Vessel Documentation; Fishery Endorsement 46 U.S.C. 12151(c) 130,000 $100,000
  • (2006)
  • (Pub. L. 109-304)
  • 1.17858 117,858 117,858
    Numbering of Undocumented Vessels—Willful violation 46 U.S.C. 12309(a) 6,000 $5,000
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 11,774 11,774
    Numbering of Undocumented Vessels 46 U.S.C. 12309(b) 1,100 $1,000
  • (1983)
  • (Pub. L. 98-89)
  • 2.35483 2,355 2,355
    Vessel Identification System 46 U.S.C. 12507(b) 15,000 $10,000
  • (1988)
  • (Pub. L. 100-710)
  • 1.97869 19,787 19,787
    Measurement of Vessels 46 U.S.C. 14701 30,000 $20,000
  • (1986)
  • (Pub. L. 99-509)
  • 2.15628 43,126 43,126
    Measurement; False Statements 46 U.S.C. 14702 30,000 $20,000
  • (1986)
  • (Pub. L. 99-509)
  • 2.15628 43,126 43,126
    Commercial Instruments and Maritime Liens 46 U.S.C. 31309 15,000 $10,000
  • (1988)
  • (Pub. L. 100-710)
  • 1.97869 19,787 19,787
    Commercial Instruments and Maritime Liens; Mortgagor 46 U.S.C. 31330(a)(2) 15,000 $10,000
  • (1988)
  • (Pub. L. 100-710)
  • 1.97869 19,787 19,787
    Commercial Instruments and Maritime Liens; Violation of 31329 46 U.S.C. 31330(b)(2) 35,000 $25,000
  • (1988)
  • (Pub. L. 100-710)
  • 1.97869 49,467 49,467
    Port Security 46 U.S.C. 70119(a) 30,000 $25,000
  • (2002)
  • (Pub. L. 107-295)
  • 1.31185 32,796 32,796
    Port Security—Continuing Violations 46 U.S.C. 70119(b) 50,000 $50,000
  • (2006)
  • (Pub. L. 109-241)
  • 1.17858 58,929 58,929
    Maritime Drug Law Enforcement 46 U.S.C. 70506(c) 5,000 $5,000
  • (2010)
  • (Pub. L. 111-281)
  • 1.08745 5,437 5,437
    Hazardous Materials: Related to Vessels 49 U.S.C. 5123(a)(1) 75,000 $75,000
  • (2012)
  • (Pub. L. 112-141)
  • 1.02819 77,114 77,114
    Hazardous Materials: Related to Vessels—Penalty from Fatalities, Serious Injuries/Illness or substantial Damage to Property 49 U.S.C. 5123(a)(2) 175,000 $175,000
  • (2012)
  • (Pub. L. 112-141)
  • 1.02819 179,933 179,933
    Hazardous Materials: Related to Vessels; Training 49 U.S.C. 5123(a)(3) 450 $450
  • (2012)
  • (Pub. L. 112-141)
  • 1.02819 463 463
    * The amount of the penalty and the year of when the penalty was established or last adjusted in statute or regulation other than pursuant to the Inflation Adjustment Act of 1990. ** OMB, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Table A: 2016 Civil Monetary Penalty Catch-Up Adjustment Multiplier by Calendar Year, February 24, 2016. *** Exempt as under the Tariff Act.
    E. Transportation Security Administration

    The Transportation Security Administration (TSA) is updating its civil penalties regulation in accordance with the 2015 Act. Pursuant to its statutory authority in 49 U.S.C. 114(v), TSA may impose penalties for violations of any statute that TSA administers, whether an implementing regulation or order imposes the penalty.6 TSA assesses these penalties for a wide variety of aviation and surface security requirements, including violations of TSA's requirements applicable to Transportation Worker Identification Credentials (TWIC),7 as well as violations of requirements described in chapter 449 of Title 49 of the U.S. Code. These penalties can apply to a wide variety of situations, as described in the statutory and regulatory provisions, as well as in guidance that TSA publishes.

    6 See 49 U.S.C. 114(v), as amended by sec. 1302 of the Implementing Recommendations of the 9/11 Commission Act of 2007 (Pub. L. 110-53, 121 Stat. 266 (Aug. 3, 2007)).

    7 See, e.g., 46 U.S.C. 70105, 49 U.S.C. 46302 and 46303, and U.S.C. ch. 449.

    TSA's maximum civil penalty amounts are located in 49 CFR 1503.401. Over the years, Congress has increased the amount of those penalties to reflect the importance of maintaining aviation security. In section 1602 of the Homeland Security Act of 2002 (Pub. L. 107-296 (Nov. 25, 2002)), Congress raised the maximum civil penalty amounts per violation for certain aviation security statutes. Additionally, in section 503(b) of the Vision 100—Century of Aviation Reauthorization Act (Vision 100) (Pub. L. 108-176 (Dec. 12, 2003)), Congress raised the total civil penalty amount per case that TSA may assess.

    In this rulemaking, we are also making several minor adjustments to the regulatory text in section 1503.401 beyond simply updating the penalty numbers. First, we are eliminating the text in paragraph (d), “Inflation adjustment,” because it is no longer needed. Pursuant to the 2015 Act, TSA will carry out inflation adjustments annually in the future, so there is no need for this text. Each year, TSA will update the amounts with current figures per the latest adjustment.

    Additionally, TSA is correcting a minor error that appeared in section 1503.401(c). Previously, subsection (c)(1), which prescribed penalties for certain aviation-related violations, stated that the penalty against an entity that is operating a non-aircraft operator business was limited to $50,000. However, that statement incorrectly applied the limiting provision in 49 U.S.C. 46301(d)(8)(C), which applies the $50,000 limitation (unadjusted for inflation) only to individuals and small businesses. TSA can assess the full amount of $400,000 (adjusted for inflation) against an entity that is not an individual or small business, and operating a non-aircraft operator business who is subject to this fine. We have made this correction by removing the inaccurate clause from paragraph (c)(1) and adding a new paragraph (c)(2) explicitly stating that an entity operating an on-aircraft operator business is subject to the full fine. We are redesignating existing paragraph (c)(2) as (c)(3).

    Under this rule, the current penalties continue to be applicable with regard to violations that occurred on or before November 2, 2015, the date of enactment of the 2015 Act. Table 5 below contains a full list of the penalties assessed by the Transportation Security Administration, where the associated violation occurred after November 2, 2015.

    Table 5—Transportation Security Administration Civil Penalties Adjustments Penalty name Citation Current penalty Baseline penalty *
  • (year)
  • Multiplier ** Preliminary new penalty
  • [multiplier ×
  • baseline
  • penalty]
  • Adjusted new
  • penalty
  • [increase capped at 150% more than current penalty]
  • Violation of 49 U.S.C. ch. 449 (except secs. 44902, 44903(d), 44907(a)-(d)(1)(A), 44907(d)(1)(C)-(f), 44908, and 44909), or 49 U.S.C. 46302 or 46303, a regulation prescribed, or order issued thereunder by a person operating an aircraft for the transportation of passengers or property for compensation 49 U.S.C. 46301(a)(1), (4); 49 CFR 1503.401(c)(2) $27,500 (up to a total of $400,000 per civil penalty action) $25,000 (2003) (up to a total of $400,000 per civil penalty action) 1.28561 $32,140 (up to a total of $514,244 per civil penalty action) $32,140 (up to a total of $514,244 per civil penalty action). Violation of 49 U.S.C. ch. 449 (except secs. 44902, 44903(d), 44907(a)-(d)(1)(A), 44907(d)(1)(C)-(f), 44908, and 44909), or 49 U.S.C. 46302 or 46303, a regulation prescribed, or order issued thereunder by an individual (except an airman serving as an airman), any person not operating an aircraft for the transportation of passengers or property for compensation, or a small business concern 49 U.S.C. 46301(a)(1), (4); 49 CFR 1503.401(c)(1) $11,000 (up to a total of $50,000 total for small businesses, $400,000 for others) $10,000 (2003) (up to a total of $50,000 total for small businesses, $400,000 for others) 1.28561 $12,856 (up to a total of $64,281 total for small businesses, $514,244 for others) $12,856 (up to a total of $64,281 total for small businesses, $514,244 for others). Violation of any other provision of title 49 U.S.C. or of 46 U.S.C. ch. 701, a regulation prescribed, or order issued thereunder 49 U.S.C. 114(v); 49 CFR 1503.401(b) $10,000 (up to a total of $50,000 total for small businesses, $400,000 for others) $10,000 (2009) (up to a total of $50,000 total for small businesses, $400,000 for others) 1.10020 $11,002 (up to a total of $55,010 total for small businesses, $440,080 for others) $11,002 (up to a total of $55,010 total for small businesses, $440,080 for others). * The amount of the penalty and the year of when the penalty was established or last adjusted in statute or regulation other than pursuant to the Inflation Adjustment Act of 1990. ** OMB, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Table A: 2016 Civil Monetary Penalty Catch-Up Adjustment Multiplier by Calendar Year, February 24, 2016.
    III. Administrative Procedure Act

    The Administrative Procedure Act (APA) generally requires agencies to publish a notice of proposed rulemaking in the Federal Register (5 U.S.C. 553(b)) and to provide interested persons with the opportunity to submit comments (5 U.S.C. 553(c)). The APA, however, provides an exception to the notice and public comment requirements where the “agency for good cause finds . . . that notice and public procedure thereon are impracticable, unnecessary, or contrary to public interest.” 5 U.S.C. 553(b)(B).

    DHS is promulgating this rule to ensure that the amount of civil penalties that DHS assesses or enforces reflects the statutorily mandated ranges as adjusted for inflation. Pursuant to 5 U.S.C. 553(b)(3)(B), there is good cause to issue this rule without prior public notice or opportunity for public comment, because it would be impracticable and unnecessary. The 2015 Act directed agencies to “adjust civil monetary penalties through an interim final rulemaking” and to make subsequent annual adjustments for inflation to civil monetary penalties notwithstanding section 553 of title 5 of the U.S. Code. In addition, the 2015 Act provides a clear formula for adjustment of the civil penalties, leaving DHS and its components with little room for discretion. DHS and its components have been charged only with performing ministerial computations to determine the amounts of adjustments for inflation to civil monetary penalties. Accordingly, prior public notice and comment are not required for this rule.

    IV. Regulatory Analyses A. Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This final rule has not been designated a “significant regulatory action,” under section 3(f) of Executive Order 12866. Accordingly, the Office of Management and Budget (OMB) has not reviewed this rule.

    This final rule makes nondiscretionary adjustments to existing civil monetary penalties in accordance with the 2015 Act and OMB guidance.8 DHS therefore did not consider alternatives and does not have the flexibility to alter the adjustments of the civil monetary penalty amounts as provided in this rule. To the extent this rule increases civil monetary penalties, it would result in an increase in transfers from persons or entities assessed a civil monetary penalty to the government.

    8 OMB, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, 24 February 2016. https://www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf.

    B. Regulatory Flexibility Act

    The Regulatory Flexibility Act applies only to rules for which an agency publishes a notice of proposed rulemaking pursuant to 5 U.S.C. 553(b). See 5 U.S.C. 601-612. The Regulatory Flexibility Act does not apply to this interim final rule, because a notice of proposed rulemaking is not required for the reasons stated above.

    C. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1531-1538, requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or Tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. This interim final rule will not result in such an expenditure.

    D. Paperwork Reduction Act

    The provisions of the Paperwork Reduction Act of 1995, 44 U.S.C. chapter 35, and its implementing regulations, 5 CFR part 1320, do not apply to this final rule, because this interim final rule does not trigger any new or revised recordkeeping or reporting.

    List of Subjects 6 CFR Part 27

    Reporting and recordkeeping requirements, Security measures.

    8 CFR Part 270

    Administrative practice and procedure, Aliens, Employment, Fraud, Penalties.

    8 CFR Part 274a

    Administrative practice and procedure, Aliens, Employment, Penalties, Reporting and recordkeeping requirements.

    8 CFR Part 280

    Administrative practice and procedure, Immigration, Penalties.

    33 CFR Part 27

    Administrative practice and procedure, Penalties.

    49 CFR Part 1503

    Administrative practice and procedure, Investigations, Law enforcement, Penalties.

    Amendments to the Regulations

    For the reasons stated in the preamble, the Department of Homeland Security amends 6 CFR part 27, 8 CFR parts 270, 274a, and 280, 33 CFR part 27, and 49 CFR part 1503 as follows:

    Title 6—Domestic Security PART 27—CHEMICAL FACILITY ANTI-TERRORISM STANDARDS 1. The authority citation for part 27 is revised to read as follows: Authority:

    6 U.S.C. 624; Pub. L. 101-410, 104 Stat. 890, as amended by Pub. L. 114-74, 129 Stat. 599.

    2. In § 27.300, revise paragraph (b)(3) to read as follows:
    § 27.300 Orders.

    (b) * * *

    (3) Where the Assistant Secretary determines that a facility is in violation of an Order issued pursuant to paragraph (a) of this section and issues an Order Assessing Civil Penalty pursuant to paragraph (b)(1) of this section, a chemical facility is liable to the United States for a civil penalty of not more than $25,000 for each day during which the violation continues, if the violation of the Order occurred on or before November 2, 2015, or $32,796 for each day during which the violation of the Order continues, if the violation occurred after November 2, 2015.

    Title 8—Aliens and Nationality PART 270—PENALTIES FOR DOCUMENT FRAUD 3. The authority citation for part 270 is revised to read as follows: Authority:

    8 U.S.C. 1101, 1103, and 1324c; Pub. L. 101-410, 104 Stat. 890, as amended by Pub. L. 104-134, 110 Stat. 1321 and Pub. L. 114-74, 129 Stat. 599.

    4. In § 270.3, revise paragraphs (b)(1)(ii)(A), (B), (C), and (D) to read as follows:
    § 270.3 Penalties.

    (b) * * *

    (1) * * *

    (ii) * * *

    (A) First offense under section 274C(a)(1) through (a)(4). Not less than $275 and not exceeding $2,200 for each fraudulent document or each proscribed activity described in section 274C(a)(1) through (a)(4) of the Act before March 27, 2008; not less than $375 and not exceeding $3,200 for each fraudulent document or each proscribed activity described in section 274C(a)(1) through (a)(4) of the Act on or after March 27, 2008 and on or before November 2, 2015; and not less than $445 and not exceeding $3,563 for each fraudulent document or each proscribed activity described in section 274C(a)(1) through (a)(4) of the Act after November 2, 2015.

    (B) First offense under section 274C(a)(5) or (a)(6). Not less than $250 and not exceeding $2,000 for each fraudulent document or each proscribed activity described in section 274C(a)(5) or (a)(6) of the Act before March 27, 2008; not less than $275 and not exceeding $2,200 for each fraudulent document or each proscribed activity described in section 274C(a)(5) or (a)(6) of the Act on or after March 27, 2008 and on or before November 2, 2015; and not less than $376 and not exceeding $3,005 for each fraudulent document or each proscribed activity described in section 274C(a)(5) or (a)(6) of the Act after November 2, 2015.

    (C) Subsequent offenses under section 274C(a)(1) through (a)(4). Not less than $2,200 and not more than $5,500 for each fraudulent document or each proscribed activity described in section 274C(a)(1) through (a)(4) of the Act before March 27, 2008; not less than $3,200 and not exceeding $6,500 for each fraudulent document or each proscribed activity described in section 274C(a)(1) through (a)(4) of the Act occurring on or after March 27, 2008 and on or before November 2, 2015; and not less than $3,563 and not more than $8,908 for each fraudulent document or each proscribed activity described in section 274C(a)(1) through (a)(4) of the Act after November 2, 2015.

    (D) Subsequent offenses under section 274C(a)(5) or (a)(6). Not less than $2,000 and not more than $5,000 for each fraudulent document or each proscribed activity described in section 274C(a)(5) or (a)(6) of the Act before March 27, 2008; not less than $2,200 and not exceeding $5,500 for each fraudulent document or each proscribed activity described in section 274C(a)(5) or (a)(6) of the Act occurring on or after March 27, 2008 and on or before November 2, 2015; and not less than $3,005 and not more than $7,512 for each fraudulent document or each proscribed activity described in section 274C(a)(5) or (a)(6) of the Act after November 2, 2015.

    PART 274a—CONTROL OF EMPLOYMENT OF ALIENS 5. The authority citation for part 274a is revised to read as follows: Authority:

    8 U.S.C. 1101, 1103, 1324a; 48 U.S.C. 1806; 8 CFR part 2; Pub. L. 101-410, 104 Stat. 890, as amended by Pub. L. 114-74, 129 Stat. 599.

    6. In § 4a.8, revise (b) to read as follows:
    § 274a.8 Prohibition of indemnity bonds.

    (b) Penalty. Any person or other entity who requires any individual to post a bond or security as stated in this section shall, after notice and opportunity for an administrative hearing in accordance with section 274A(e)(3)(B) of the Act, be subject to a civil monetary penalty of $1,000 for each violation before September 29, 1999, of $1,100 for each violation occurring on or after September 29, 1999 but on or before November 2, 2015, and of $2,156 for each violation occurring after November 2, 2015, and to an administrative order requiring the return to the individual of any amounts received in violation of this section or, if the individual cannot be located, to the general fund of the Treasury.

    7. In § 274a.10, revise paragraphs (b)(1)(ii)(A),(B),(C), and (b)(1)(iii)(2) to read as follows:
    § 274a.10 Penalties.

    (b) * * *

    (1) * * *

    (ii) * * *

    (A) First offense—not less than $275 and not more than $2,200 for each unauthorized alien with respect to whom the offense occurred before March 27, 2008; not less than $375 and not exceeding $3,200, for each unauthorized alien with respect to whom the offense occurred occurring on or after March 27, 2008 and on or before November 2, 2015; and not less than $539 and not more than $4,313 for each unauthorized alien with respect to whom the offense occurred occurring after November 2, 2015.

    (B) Second offense—not less than $2,200 and not more than $5,500 for each unauthorized alien with respect to whom the second offense occurred before March 27, 2008; not less than $3,200 and not more than $6,500, for each unauthorized alien with respect to whom the second offense occurred on or after March 27, 2008 and on or before November 2, 2015; and not less than $4,313 and not more than $10,781 for each unauthorized alien with respect to whom the second offense occurred after November 2, 2015; or

    (C) More than two offenses—not less than $3,300 and not more than $11,000 for each unauthorized alien with respect to whom the third or subsequent offense occurred before March 27, 2008; not less than $4,300 and not exceeding $16,000, for each unauthorized alien with respect to whom the third or subsequent offense occurred on or after March 27, 2008 and on or before November 2, 2015; and not less than $6,469 and not more than $21,563 for each unauthorized alien with respect to whom the third or subsequent offense occurred after November 2, 2015; and

    (iii) * * *

    (2) A respondent determined by the Service (if a respondent fails to request a hearing) or by an administrative law judge, to have failed to comply with the employment verification requirements as set forth in § 274a.2(b), shall be subject to a civil penalty in an amount of not less than $100 and not more than $1,000 for each individual with respect to whom such violation occurred before September 29, 1999; not less than $110 and not more than $1,100 for each individual with respect to whom such violation occurred on or after September 29, 1999 and on or before November 2, 2015; and not less than $216 and not more than $2,156 for each individual with respect to whom such violation occurred after November 2, 2015. In determining the amount of the penalty, consideration shall be given to:

    (i) The size of the business of the employer being charged;

    (ii) The good faith of the employer;

    (iii) The seriousness of the violation;

    (iv) Whether or not the individual was an unauthorized alien; and

    (v) The history of previous violations of the employer.

    PART 280—IMPOSITION AND COLLECTION OF FINES 8. The authority citation for part 280 is revised to read as follows: Authority:

    8 U.S.C. 1103, 1221, 1223, 1227, 1229, 1253, 1281, 1283, 1284, 1285, 1286, 1322, 1323, 1330; 66 Stat. 173, 195, 197, 201, 203, 212, 219, 221-223, 226, 227, 230; Pub. L. 101-410, 104 Stat. 890, as amended by Pub. L. 114-74, 129 Stat. 599.

    9. Revise § 280.53 to read as follows:
    § 280.53 Civil Monetary Penalties Inflation Adjustment.

    (a) Statutory authority. In accordance with the requirements of the Federal Civil Penalties Inflation Adjustment Act of 1990, Public Law 101-410, 104 Stat. 890, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Public Law 114-74, Sec. 701, 129 Stat. 599, the civil monetary penalties listed in paragraph (b) of this section are adjusted as provided in this paragraph (b).

    (b) Adjustment of penalties. For violations occurring on or before November 2, 2015, the penalty amount prior to adjustment applies. For violations occurring after November 2, 2015, the listed penalties are adjusted as follows:

    (1) Section 231(g) of the Act, Penalties for non-compliance with arrival and departure manifest requirements for passengers, crewmembers, or occupants transported on commercial vessels or aircraft arriving to or departing from the United States: From $1,100 to $1,312.

    (2) Section 234 of the Act, Penalties for non-compliance with landing requirements at designated ports of entry for aircraft transporting aliens: From $3,200 to $3,563.

    (3) Section 240B(d) of the Act, Penalties for failure to depart voluntarily: From $1,100 minimum/$5,500 maximum to $1,502 minimum/$7,512 maximum.

    (4) Section 243(c)(1)(A) of the Act, Penalties for violations of removal orders relating to aliens transported on vessels or aircraft, under section 241(d) of the Act, or for costs associated with removal under section 241(e) of the Act: From $2,200 to $3,005;

    (5) Penalties for failure to remove alien stowaways under section 241(d)(2): From $5,500 to $7,512.

    (6) Section 251(d) of the Act, Penalties for failure to report an illegal landing or desertion of alien crewmen, and for each alien not reported on arrival or departure manifest or lists required in accordance with section 251 of the Act: From $320 to $356; and penalties for use of alien crewmen for longshore work in violation of section 251(d) of the Act: From $7,500 to $8,908.

    (7) Section 254(a) of the Act, Penalties for failure to control, detain, or remove alien crewmen: From $750 minimum/$4,300 maximum to $891 minimum/$5,345 maximum.

    (8) Section 255 of the Act, Penalties for employment on passenger vessels of aliens afflicted with certain disabilities: From $1,100 to $1,782.

    (9) Section 256 of the Act, Penalties for discharge of alien crewmen: From $1,500 minimum/$4,300 maximum to $2,672 minimum/$5,345 maximum.

    (10) Section 257 of the Act, Penalties for bringing into the United States alien crewmen with intent to evade immigration laws: From $16,000 maximum to $17,816 maximum.

    (11) Section 271(a) of the Act, Penalties for failure to prevent the unauthorized landing of aliens: From $4,300 to $5,345.

    (12) Section 272(a) of the Act, Penalties for bringing to the United States aliens subject to denial of admission on a health-related ground: From $4,300 to $5,345.

    (13) Section 273(b) of the Act, Penalties for bringing to the United States aliens without required documentation: From $4,300 to $5,345.

    (14) Section 274D of the Act, Penalties for failure to depart: From $550 to $751, for each day the alien is in violation.

    (15) Section 275(b) of the Act, Penalties for improper entry: From $55 minimum/$275 maximum to $75 minimum/$376 maximum, for each entry or attempted entry.

    Title 33—Navigation and Navigable Waters
    PART 27—ADJUSTMENT OF CIVIL MONETARY PENALTIES FOR INFLATION 10. The authority citation for part 27 continues to read as follows: Authority:

    Secs. 1-6, Public Law 101-410, 104 Stat. 890, as amended by Sec. 31001(s)(1), Public Law 104-134, as amended by Public Law 114-74; 110 Stat. 1321 (28 U.S.C. 2461 note); Department of Homeland Security Delegation No. 0170.1, sec. 2 (106).

    11. Revise § 27.3 to read as follows:
    § 27.3 Penalty adjustment table.

    Table 1 identifies the statutes administered by the Coast Guard that authorize a civil monetary penalty. The “adjusted maximum penalty” is the maximum penalty authorized by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, as determined by the Coast Guard. The adjusted civil penalty amounts listed in Table 1 are applicable for penalty assessments issued after August 1, 2016, with respect to violations occurring after November 2, 2015. The applicable civil penalty amounts for violations occurring on or before November 2, 2015, are set forth in previously published regulations amending 33 CFR part 27.

    Table 1—Civil Monetary Penalty Inflation Adjustments U.S. Code citation Civil monetary penalty description 2016 adjusted
  • maximum
  • penalty
  • amount
  • ($)
  • 14 U.S.C. 88(c) Saving Life and Property 10,017 14 U.S.C. 88(e) Saving Life and Property; Intentional Interference with Broadcast 1,028 14 U.S.C. 645(i) Confidentiality of Medical Quality Assurance Records (first offense) 5,032 14 U.S.C. 645(i) Confidentiality of Medical Quality Assurance Records (subsequent offenses) 33,546 16 U.S.C. 4711(g)(1) Aquatic Nuisance Species in Waters of the United States 37,561 19 U.S.C. 70 Obstruction of Revenue Officers by Masters of Vessels 7,500 19 U.S.C. 70 Obstruction of Revenue Officers by Masters of Vessels—Minimum Penalty 1,750 19 U.S.C. 1581(d) Failure to Stop Vessel When Directed; Master, Owner, Operator or Person in Charge 1 5,000 19 U.S.C. 1581(d) Failure to Stop Vessel When Directed; Master, Owner, Operator or Person in Charge—Minimum Penalty 1 1,000 33 U.S.C. 471 Anchorage Ground/Harbor Regulations General 10,875 33 U.S.C. 474 Anchorage Ground/Harbor Regulations St. Mary's River 750 33 U.S.C. 495(b) Bridges/Failure to Comply with Regulations 27,455 33 U.S.C. 499(c) Bridges/Drawbridges 27,455 33 U.S.C. 502(c) Bridges/Failure to Alter Bridge Obstructing Navigation 27,455 33 U.S.C. 533(b) Bridges/Maintenance and Operation 27,455 33 U.S.C. 1208(a) Bridge to Bridge Communication; Master, Person in Charge or Pilot 2,000 33 U.S.C. 1208(b) Bridge to Bridge Communication; Vessel 2,000 33 U.S.C. 1232(a) PWSA Regulations 88,613 33 U.S.C. 1236(b) Vessel Navigation: Regattas or Marine Parades; Unlicensed Person in Charge 8,908 33 U.S.C. 1236(c) Vessel Navigation: Regattas or Marine Parades; Owner Onboard Vessel 8,908 33 U.S.C. 1236(d) Vessel Navigation: Regattas or Marine Parades; Other Persons 4,454 33 U.S.C. 1321(b)(6)(B)(i) Oil/Hazardous Substances: Discharges (Class I per violation) 17,816 33 U.S.C. 1321(b)(6)(B)(i) Oil/Hazardous Substances: Discharges (Class I total under paragraph) 44,539 33 U.S.C. 1321(b)(6)(B)(ii) Oil/Hazardous Substances: Discharges (Class II per day of violation) 17,816 33 U.S.C. 1321(b)(6)(B)(ii) Oil/Hazardous Substances: Discharges (Class II total under paragraph) 222,695 33 U.S.C. 1321(b)(7)(A) Oil/Hazardous Substances: Discharges (per day of violation) Judicial Assessment 44,539 33 U.S.C. 1321(b)(7)(A) Oil/Hazardous Substances: Discharges (per barrel of oil or unit discharged) Judicial Assessment 1,782 33 U.S.C. 1321(b)(7)(B) Oil/Hazardous Substances: Failure to Carry Out Removal/Comply With Order (Judicial Assessment) 44,539 33 U.S.C. 1321(b)(7)(C) Oil/Hazardous Substances: Failure to Comply with Regulation Issued Under 1321(j) (Judicial Assessment) 44,539 33 U.S.C. 1321(b)(7)(D) Oil/Hazardous Substances: Discharges, Gross Negligence (per barrel of oil or unit discharged) Judicial Assessment 5,345 33 U.S.C. 1321(b)(7)(D) Oil/Hazardous Substances: Discharges, Gross Negligence—Minimum Penalty (Judicial Assessment) 178,156 33 U.S.C. 1322(j) Marine Sanitation Devices; Operating 7,500 33 U.S.C. 1322(j) Marine Sanitation Devices; Sale or Manufacture 20,000 33 U.S.C. 1608(a) International Navigation Rules; Operator 14,023 33 U.S.C. 1608(b) International Navigation Rules; Vessel 14,023 33 U.S.C. 1908(b)(1) Pollution from Ships; General 70,117 33 U.S.C. 1908(b)(2) Pollution from Ships; False Statement 14,023 33 U.S.C. 2072(a) Inland Navigation Rules; Operator 14,023 33 U.S.C. 2072(b) Inland Navigation Rules; Vessel 14,023 33 U.S.C. 2609(a) Shore Protection; General 49,467 33 U.S.C. 2609(b) Shore Protection; Operating Without Permit 19,787 33 U.S.C. 2716a(a) Oil Pollution Liability and Compensation 44,539 33 U.S.C. 3852(a)(1)(A) Clean Hulls; Civil Enforcement 40,779 33 U.S.C. 3852(a)(1)(A) Clean Hulls; related to false statements 54,373 33 U.S.C. 3852(c) Clean Hulls; Recreational Vessels 5,437 42 U.S.C. 9609(a) Hazardous Substances, Releases, Liability, Compensation (Class I) 53,907 42 U.S.C. 9609(b) Hazardous Substances, Releases, Liability, Compensation (Class II) 53,907 42 U.S.C. 9609(b) Hazardous Substances, Releases, Liability, Compensation (Class II subsequent offense) 161,721 42 U.S.C. 9609(c) Hazardous Substances, Releases, Liability, Compensation (Judicial Assessment) 53,907 42 U.S.C. 9609(c) Hazardous Substances, Releases, Liability, Compensation (Judicial Assessment subsequent offense) 161,721 46 U.S.C. 80509(a) Safe Containers for International Cargo 5,893 46 U.S.C. 70305(c) Suspension of Passenger Service 58,929 46 U.S.C. 2110(e) Vessel Inspection or Examination Fees 8,908 46 U.S.C. 2115 Alcohol and Dangerous Drug Testing 7,251 46 U.S.C. 2302(a) Negligent Operations: Recreational Vessels 6,559 46 U.S.C. 2302(a) Negligent Operations: Other Vessels 32,796 46 U.S.C. 2302(c)(1) Operating a Vessel While Under the Influence of Alcohol or a Dangerous Drug 7,251 46 U.S.C. 2306(a)(4) Vessel Reporting Requirements: Owner, Charterer, Managing Operator, or Agent 11,293 46 U.S.C. 2306(b)(2) Vessel Reporting Requirements: Master 2,259 46 U.S.C. 3102(c)(1) Immersion Suits 11,293 46 U.S.C. 3302(i)(5) Inspection Permit 2,355 46 U.S.C. 3318(a) Vessel Inspection; General 11,293 46 U.S.C. 3318(g) Vessel Inspection; Nautical School Vessel 11,293 46 U.S.C. 3318(h) Vessel Inspection; Failure to Give Notice IAW 3304(b) 2,259 46 U.S.C. 3318(i) Vessel Inspection; Failure to Give Notice IAW 3309(c) 2,259 46 U.S.C. 3318(j)(1) Vessel Inspection; Vessel ≥1600 Gross Tons 22,587 46 U.S.C. 3318(j)(1) Vessel Inspection; Vessel <1600 Gross Tons 4,517 46 U.S.C. 3318(k) Vessel Inspection; Failure to Comply with 3311(b) 22,587 46 U.S.C. 3318(l) Vessel Inspection; Violation of 3318(b)-3318(f) 11,293 46 U.S.C. 3502(e) List/Count of Passengers 235 46 U.S.C. 3504(c) Notification to Passengers 23,548 46 U.S.C. 3504(c) Notification to Passengers; Sale of Tickets 1,177 46 U.S.C. 3506 Copies of Laws on Passenger Vessels; Master 471 46 U.S.C. 3718(a)(1) Liquid Bulk/Dangerous Cargo 58,871 46 U.S.C. 4106 Uninspected Vessels 9,893 46 U.S.C. 4311(b)(1) Recreational Vessels (maximum for related series of violations) 311,470 46 U.S.C. 4311(b)(1) Recreational Vessels; Violation of 4307(a) 6,229 46 U.S.C. 4311(c) Recreational Vessels 2,355 46 U.S.C. 4507 Uninspected Commercial Fishing Industry Vessels 9,893 46 U.S.C. 4703 Abandonment of Barges 1,677 46 U.S.C. 5116(a) Load Lines 10,781 46 U.S.C. 5116(b) Load Lines; Violation of 5112(a) 21,563 46 U.S.C. 5116(c) Load Lines; Violation of 5112(b) 10,781 46 U.S.C. 6103(a) Reporting Marine Casualties 37,561 46 U.S.C. 6103(b) Reporting Marine Casualties; Violation of 6104 9,893 46 U.S.C. 8101(e) Manning of Inspected Vessels; Failure to Report Deficiency in Vessel Complement 1,782 46 U.S.C. 8101(f) Manning of Inspected Vessels 17,816 46 U.S.C. 8101(g) Manning of Inspected Vessels; Employing or Serving in Capacity not Licensed by USCG 17,816 46 U.S.C. 8101(h) Manning of Inspected Vessels; Freight Vessel <100 GT, Small Passenger Vessel, or Sailing School Vessel 2,355 46 U.S.C. 8102(a) Watchmen on Passenger Vessels 2,355 46 U.S.C. 8103(f) Citizenship Requirements 1,177 46 U.S.C. 8104(i) Watches on Vessels; Violation of 8104(a) or (b) 17,816 46 U.S.C. 8104(j) Watches on Vessels; Violation of 8104(c), (d), (e), or (h) 17,816 46 U.S.C. 8302(e) Staff Department on Vessels 235 46 U.S.C. 8304(d) Officer's Competency Certificates 235 46 U.S.C. 8502(e) Coastwise Pilotage; Owner, Charterer, Managing Operator, Agent, Master or Individual in Charge 17,816 46 U.S.C. 8502(f) Coastwise Pilotage; Individual 17,816 46 U.S.C. 8503 Federal Pilots 56,467 46 U.S.C. 8701(d) Merchant Mariners Documents 1,177 46 U.S.C. 8702(e) Crew Requirements 17,816 46 U.S.C. 8906 Small Vessel Manning 37,561 46 U.S.C. 9308(a) Pilotage: Great Lakes; Owner, Charterer, Managing Operator, Agent, Master or Individual in Charge 17,816 46 U.S.C. 9308(b) Pilotage: Great Lakes; Individual 17,816 46 U.S.C. 9308(c) Pilotage: Great Lakes; Violation of 9303 17,816 46 U.S.C. 10104(b) Failure to Report Sexual Offense 9,468 46 U.S.C. 10314(a)(2) Pay Advances to Seamen 1,177 46 U.S.C. 10314(b) Pay Advances to Seamen; Remuneration for Employment 1,177 46 U.S.C. 10315(c) Allotment to Seamen 1,177 46 U.S.C. 10321 Seamen Protection; General 8,162 46 U.S.C. 10505(a)(2) Coastwise Voyages: Advances 8,162 46 U.S.C. 10505(b) Coastwise Voyages: Advances; Remuneration for Employment 8,162 46 U.S.C. 10508(b) Coastwise Voyages: Seamen Protection; General 8,162 46 U.S.C. 10711 Effects of Deceased Seamen 471 46 U.S.C. 10902(a)(2) Complaints of Unfitness 1,177 46 U.S.C. 10903(d) Proceedings on Examination of Vessel 235 46 U.S.C. 10907(b) Permission to Make Complaint 1,177 46 U.S.C. 11101(f) Accommodations for Seamen 1,177 46 U.S.C. 11102(b) Medicine Chests on Vessels 1,177 46 U.S.C. 11104(b) Destitute Seamen 235 46 U.S.C. 11105(c) Wages on Discharge 1,177 46 U.S.C. 11303(a) Log Books; Master Failing to Maintain 471 46 U.S.C. 11303(b) Log Books; Master Failing to Make Entry 471 46 U.S.C. 11303(c) Log Books; Late Entry 353 46 U.S.C. 11506 Carrying of Sheath Knives 118 46 U.S.C. 12151(a)(1) Vessel Documentation 15,423 46 U.S.C. 12151(a)(2) Documentation of Vessels—Related to activities involving mobile offshore drilling units 25,705 46 U.S.C. 12151(c) Vessel Documentation; Fishery Endorsement 117,858 46 U.S.C. 12309(a) Numbering of Undocumented Vessels—Willful violation 11,774 46 U.S.C. 12309(b) Numbering of Undocumented Vessels 2,355 46 U.S.C. 12507(b) Vessel Identification System 19,787 46 U.S.C. 14701 Measurement of Vessels 43,126 46 U.S.C. 14702 Measurement; False Statements 43,126 46 U.S.C. 31309 Commercial Instruments and Maritime Liens 19,787 46 U.S.C. 31330(a)(2) Commercial Instruments and Maritime Liens; Mortgagor 19,787 46 U.S.C. 31330(b)(2) Commercial Instruments and Maritime Liens; Violation of 31329 49,467 46 U.S.C. 70119(a) Port Security 32,796 46 U.S.C. 70119(b) Port Security—Continuing Violations 58,929 46 U.S.C. 70506 Maritime Drug Law Enforcement; Penalties 5,437 49 U.S.C. 5123(a)(1) Hazardous Materials: Related to Vessels—Maximum Penalty 77,114 49 U.S.C. 5123(a)(2) Hazardous Materials: Related to Vessels—Penalty from Fatalities, Serious Injuries/Illness or Substantial Damage to Property 179,933 49 U.S.C. 5123(a)(3) Hazardous Materials: Related to Vessels—Training. 463 1 Enacted under the Tariff Act of 1930, exempt from inflation adjustments.
    Title 49—Transportation PART 1503—INVESTIGATIVE AND ENFORCEMENT PROCEDURES 12. The authority citation for part 1503 is revised to read as follows: Authority:

    6 U.S.C. 1142; 18 U.S.C. 6002; 28 U.S.C. 2461 (note); 49 U.S.C. 114, 20109, 31105, 40113-40114, 40119, 44901-44907, 46101-46107, 46109-46110, 46301, 46305, 46311, 46313-46314; Pub. L. 104-134, as amended by Pub. L. 114-74.

    13. Revise § 1503.401 to read as follows:
    § 1503.401 Maximum penalty amounts.

    (a) General. TSA may assess civil penalties not exceeding the following amounts against a person for the violation of a TSA requirement.

    (b) In general. Except as provided in paragraph (c) of this section, in the case of violation of title 49 U.S.C. or 46 U.S.C. chapter 701, or a regulation prescribed or order issued under any of those provisions, TSA may impose a civil penalty in the following amounts:

    (1) For violations that occurred on or before November 2, 2015, $10,000 per violation, up to a total of $50,000 per civil penalty action, in the case of an individual or small business concern, as defined in section 3 of the Small Business Act (15 U.S.C. 632). For violations that occurred after November 2, 2015, $11,002 per violation, up to a total of $55,010 per civil penalty action, in the case of an individual or small business concern; and

    (2) For violations that occurred on or before November 2, 2015, $10,000 per violation, up to a total of $400,000 per civil penalty action, in the case of any other person. For violations that occurred after November 2, 2015, $11,002 per violation, up to a total of $440,080 per civil penalty action, in the case of any other person.

    (c) Certain aviation related violations. In the case of a violation of 49 U.S.C. chapter 449 (except sections 44902, 44903(d), 44907(a)-(d)(1)(A), 44907(d)(1)(C)-(f), 44908, and 44909), or 49 U.S.C. 46302 or 46303, or a regulation prescribed or order issued under any of those provisions, TSA may impose a civil penalty in the following amounts:

    (1) For violations that occurred on or before November 2, 2015, $10,000 per violation, up to a total of $50,000 per civil penalty action, in the case of an individual or small business concern, as defined in section 3 of the Small Business Act (15 U.S.C. 632). For violations that occurred after November 2, 2015, $12,856 per violation, up to a total of 64,281 per civil penalty action, in the case of an individual (except an airman serving as an airman), or a small business concern.

    (2) For violations that occurred on or before November 2, 2015, $10,000 per violation, up to a total of $400,000 per civil penalty action, in the case of any other person (except an airman serving as an airman) not operating an aircraft for the transportation of passengers or property for compensation. For violations that occurred after November 2, 2015, $12,856 per violation, up to a total of $514,244 per civil penalty action, in the case of any other person (except an airman serving as an airman) not operating an aircraft for the transportation of passengers or property for compensation.

    (3) For violations that occurred on or before November 2, 2015, $25,000 per violation, up to a total of $400,000 per civil penalty action, in the case of a person operating an aircraft for the transportation of passengers or property for compensation (except an individual serving as an airman). For violations that occurred after November 2, 2015, $32,140 per violation, up to a total of $514,244 per civil penalty action, in the case of a person (except an individual serving as an airman) operating an aircraft for the transportation of passengers or property for compensation.

    Jeh Charles Johnson, Secretary.
    [FR Doc. 2016-15673 Filed 6-30-16; 8:45 am] BILLING CODE 9110-09-P; 9111-14-P; 9111-28-P; 9110-04-P; 9110-05-P
    DEPARTMENT OF AGRICULTURE Foreign Agricultural Service 7 CFR Part 1590 RIN 0551-AA87 Local and Regional Food Aid Procurement Program AGENCY:

    Foreign Agricultural Service, USDA.

    ACTION:

    Final rule with request for comments.

    SUMMARY:

    This document establishes rules to govern the award of funds by the Foreign Agricultural Service (FAS) to recipients under the USDA Local and Regional Food Aid Procurement Program (USDA LRP Program). Section 3206 of the Food, Conservation, and Energy Act of 2008, as amended by the Agricultural Act of 2014, provides that the Secretary of Agriculture will provide grants to, or enter into cooperative agreements with, eligible organizations to implement field-based projects that consist of local or regional procurements of eligible commodities in developing countries to provide development assistance and respond to food crises and disasters. The intended effects of the USDA LRP Program are to support development activities aimed at strengthening the trade capacity of food-insecure developing countries and to address the cause of chronic food insecurity. The regulation also addresses how emergency programming will be addressed.

    DATES:

    Effective July 1, 2016.

    Comment Dates: Written comments must be received by FAS or carry a postmark or equivalent no later than August 30, 2016.

    ADDRESSES:

    Submit comments to:

    Federal Rulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments.

    • Director, Food Assistance Division, Office of Capacity Building and Development, Foreign Agricultural Service, 1400 Independence Ave. SW., STOP 1034, Washington, DC 20250.

    FOR FURTHER INFORMATION CONTACT:

    Director, Food Assistance Division, Office of Capacity Building and Development, Foreign Agricultural Service, 1400 Independence Ave. SW., STOP 1034, Washington, DC 20250. Telephone: (202) 720-4221; Fax: (202) 690-0251; Email: [email protected]

    SUPPLEMENTARY INFORMATION: Background Overview

    Section 3206 of the Food, Conservation, and Energy Act of 2008 (the “2008 Farm Bill”), as amended by the Agricultural Act of 2014 (the “2014 Farm Bill”), provides that the Secretary of Agriculture will establish a program to provide grants to, or enter into cooperative agreements with, eligible organizations to procure locally or regionally produced commodities to respond to food crises and disasters. International nongovernmental organizations (NGOs) and intergovernmental organizations, like the World Food Program (WFP), have successfully utilized local and regional procurement over the last decade. Local and regional procurement, which has increasingly become a key element in the multilateral food aid response, is used to purchase food in countries affected by disasters and food crises or in a different country within the same region.

    Currently many bilateral food assistance donors have shifted from commodity-based in-kind food aid to a cash-based food assistance program. The World Food Program has cited that the use of cash-based programs enables NGOs and intergovernmental organizations to purchase food locally or regionally in order to deliver assistance to beneficiaries quickly and cost-effectively, while also providing development benefits to local communities by strengthening agricultural markets where the food is purchased.

    Several academic and other studies have cited significant cost and time savings for certain commodities and in certain areas.1 For example, GAO found that in Sub-Saharan Africa, local procurement cost about 34 percent less than similar in-kind U.S. food aid shipments. Some studies cited by the Government Accountability Office noted that large cash purchases in some developing countries could have detrimental effects on local market conditions if not carefully done. In cases where local purchases might substantially raise local market prices, in-kind donations of commodities may be more beneficial. Similarly, GAO and others have noted that in-kind donations can also have detrimental effects depending on local market conditions, depressing local farmers' prices if not carefully done. As the largest international food aid donor, contributing over half of all global food aid supplies to alleviate hunger and support development, the United States plays an important role in responding to food assistance needs and ensuring global food security. U.S. international food assistance programs must maintain flexibility and use the approach that best serves the in-country food security situation.

    1 See, for example, Erin C. Lentz, Simone Passarelli, Christopher B. Barrett, “The Timeliness and Cost-Effectiveness of the Local and Regional Procurement of Food Aid,” World Development, Available online 1 March 2013, ISSN 0305-750X, 10.1016/j.worlddev.2013.01.017; Barrett, Christopher B., Samuel D. Bell, Teevrat Garg, Miguel I. Gomez, Aurélie P. Harou, Erin C. Lentz, Simone Passarelli, Joanna B. Upton and William J. Violette. “Final Report: A Multidimensional Analysis of Local and Regional Procurement of US Food Aid,” January 2012. Cornell University; and General Accountability Office, Local and Regional Procurement Can Enhance the Efficiency of U.S. Food Aid, but Challenges May Constrain Its Implementation, GAO-09-570: Published: May 29, 2009. Publicly Released: Jun 4, 2009, http://www.gao.gov/products/GAO-09-570. Appendix VI of the GAO report includes a review of literature on local and regional procurement.

    The USDA LRP Program adds another mechanism to deliver food assistance to the federal programs currently providing assistance, including Title II of the Food for Peace Act and International Disaster Assistance under the Foreign Assistance Act of 1961, both of which currently utilize local and regional procurement and are administered by the U.S. Agency for International Development, and USDA's Food for Progress Program and McGovern-Dole International Food for Education and Child Nutrition (“McGovern-Dole”) Program. The USDA LRP Program aims to support development activities to strengthen the capacity of food-insecure developing countries and address the cause of chronic food insecurity. Other objectives of the USDA LRP Program are to support the consumption of locally produced food and strengthen local value chains and all associated procurement activities. The USDA LRP Program will focus primarily on development programs, although the rule also provides for the furnishing of food assistance through an emergency response. Given the role of the United States Agency for International Development (USAID) as the lead agency in the provision of U.S. emergency humanitarian assistance, any emergency response will be determined in consultation with the USAID Administrator, as provided for in section 3206(b)(2) of the 2008 Farm Bill, as amended, to ensure programs address the highest priority needs only and are not duplicative.

    Lessons From Pilot Program

    The 2008 Farm Bill, as enacted on June 18, 2008, authorized and funded a pilot program (the USDA LRP pilot program) to test different approaches and study practical lessons regarding the timeliness, cost effectiveness, impacts on market, and quality and other benefits of locally procured food assistance. Twenty-one local and regional procurement pilot projects were funded in nineteen countries. An independent evaluation that examined the activities of the final twenty projects in eighteen countries (due to the cancellation of one project) demonstrated that locally procured food assistance can provide food assistance at lower cost, with a shorter delivery time, and in some cases has other development benefits. The full evaluation can be viewed at http://www.fas.usda.gov/newsroom/local-and-regional-food-aid-procurement-pilot-project-independent-evaluation-report.

    To address food safety and quality and market sensitivities, the USDA LRP Program will build capacity to meet quality standards and product specifications to ensure food safety and nutritional content within each project and with its beneficiaries. To address market sensitivities around local and regional purchases, the USDA LRP Program will work with its recipients to improve the reliability and utility of market intelligence in areas where the USDA LRP Program is implemented, seeking to ensure that the USDA LRP Program minimizes potential adverse impacts and maximizes potential benefits.

    Program Essentials

    The 2008 Farm Bill, as amended by the 2014 Farm Bill, authorizes the Secretary to provide grants to, or enter into cooperative agreements with, eligible organizations to implement international field-based projects that consist of local or regional procurements of eligible commodities to fill nutritional gaps for targeted populations and respond to food availability gaps generated by unexpected emergencies. The USDA LRP program will use the local or regional procurement of commodities for distribution in developing countries to complement existing food aid programs, giving preference to the McGovern-Dole Program. The Food and Agricultural Organization of the United Nations states that there is global consensus recognizing child nutrition as an essential element to improve not only the health and well-being of children around the world, but also the social and economic development of communities and countries. Under the USDA LRP Program, FAS will provide grants to, or enter into cooperative agreements with, private voluntary organizations, cooperatives, and the World Food Program to undertake activities such as strengthening value chains and other procurement activities.

    The USDA LRP Program will be used for development projects, and focus on supplementing U.S. commodity purchases through the McGovern-Dole Program. The USDA LRP Program will focus on developing appropriate supply chains for the procurement of commodities from local producers. School meals using locally purchased foods will add locally known varieties to the meals, which may make them more appealing to the children and help increase nutrition. In cases where supply chains need to be strengthened in order to support a workable and reliable supply of food for the McGovern-Dole Program, the USDA LRP Program can work with producers, school authorities, and local municipalities in communities around schools to provide technical and management expertise to build reliable supply systems, as well as to procure commodities.

    The USDA LRP Program will aim to strengthen rural farm communities economically and incentivize school attendance in order to improve education, while at the same time work with host country governments to build a type of safety net for those populations in great need. For example, this type of programing can address multiple issues in many developing countries, of which many have large, agricultural based economies with rural populations in need of education and market opportunities.

    Notice and Comment

    This rule is being issued as a final rule without prior notice and opportunity for comment. The Administrative Procedure Act exempts rules “relating to agency management or personnel or to public property, loans, grants, benefits, or contracts” from the statutory requirement in 5 U.S.C. 553, which includes the requirement for prior notice and opportunity for comment (5 U.S.C. 553(a)(2)). However, members of the public may participate in this rulemaking by submitting written comments, data, or views. FAS will consider the comments received and may conduct additional rulemaking based on the comments. Written comments must be received by FAS or carry a postmark or equivalent no later than 60 days after publication of this rule in the Federal Register.

    Effective Date

    The Administrative Procedure Act (5 U.S.C. 553) provides generally that before rules are issued by Government agencies, the rule must be published in the Federal Register, and the required publication of a substantive rule is to be not less than 30 days before its effective date. However, noted above, one of the exceptions is that section 553 does not apply to rulemaking that involves a matter relating to benefits. Therefore, because this rule relates to benefits, this final rule is effective when published in the Federal Register. This will allow us to provide greater access to local and regional procured food aid as soon as possible during the 2016 school year.

    Catalog of Federal Domestic Assistance

    The program covered by this regulation is listed in the Catalog of Federal Domestic Assistance (CFDA) under the following FAS CFDA number: 10.612, USDA LRP Program.

    Paperwork Reduction Act of 1995

    In accordance with the Paperwork Reduction Act of 1995, the following new information collection request that supports USDA's Local and Regional Food Aid Procurement Program was submitted to OMB for emergency approval. FAS is requesting comments from interested individuals and organizations on the information collection activities related to USDA's Local and Regional Food Aid Procurement application process and reporting requirements.

    Title: USDA's Local and Regional Food Aid Procurement Program.

    OMB Control Number: 0551-New.

    Type of Request: New Collection.

    Abstract: Under the USDA Local and Regional Food Aid Procurement Program, information will be gathered from applicants desiring to receive grants or enter into cooperative agreements under the USDA LRP Program to determine the viability of requests for resources to implement activities in foreign countries. Recipients of grants or cooperative agreements under the USDA LRP Program must submit performance and financial reports until funds provided by FAS and commodities purchased with such funds are utilized. Documents are used to develop effective grant or cooperative agreements and assure that statutory requirements and program objectives are met.

    Estimate of Burden: The public reporting burden for each respondent resulting from information collection under the USDA Local and Regional Food Aid Procurement Program varies in direct relation to the number and type of agreements entered into by such respondent. The estimated average reporting burden for USDA Local and Regional Food Aid Procurement Program is 78 hours per response.

    Type of Respondents: Private voluntary organizations, cooperatives, and intergovernmental organizations.

    Estimated Number of Respondents: 22 per annum.

    Estimated Number of Responses per Respondent: 17 per annum.

    Estimated Total Annual Burden of Respondents: 29,172 hours.

    Copies of this information collection can be obtained from Connie Ehrhart, the Agency Information Collection Coordinator, at (202) 690-1578 or email at [email protected]

    Request for Comments: Send comments regarding (a) whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (b) the accuracy of the agency's estimate of the burden of the proposed collection of information; (c) ways to enhance the quality, utility and clarity of the information to be collected; and (d) ways to minimize the burden of the collection of information on those who are to respond, including through the use of automated, electronic, mechanical, or other technological collection techniques or other forms of information technology. Comments may be sent to:

    Federal Rulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments.

    • Director, Food Assistance Division, Office of Capacity Building and Development, Foreign Agricultural Service, 1400 Independence Ave. SW., STOP 1034, Washington, DC 20250.

    All comments received in response to this notice, including names and addresses when provided, will be a matter of public record. Comments will be summarized and included in the submission for Office of Management and Budget approval.

    On February 16, 2016, FAS published in the Federal Register a notice entitled “Notice of Request for Approval of a New Information Collection” at 81 FR 7742. This notice included a 60 day comment period for interested individuals to provide comments on the information collection burden of the USDA LRP Program. As such, the notice duplicates the request for comments above pertaining to the information collection burden of the USDA LRP Program. Interested parties may provide comments on the information collection burden either by providing comments on this rule or on the Federal Register notice that was published on February 16, 2016. It is not necessary to provide comments on both documents.

    E-Government Act Compliance

    FAS is committed to complying with the E-Government Act of 2002 (44 U.S.C. chapter 36), to promote the use of the Internet and other information technologies to provide increased opportunities for citizens' access to Government information and services, and for other purposes.

    Executive Orders 12866 and 13563

    Executive Order 12866, “Regulatory Planning and Review,” and Executive Order 13563, “Improving Regulation and Regulatory Review,” direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility.

    The Office of Management and Budget (OMB) designated this rule as significant under Executive Order 12866, “Regulatory Planning and Review,” and therefore, OMB has reviewed this rule. The costs and benefits of this final rule are summarized below. The full cost benefit analysis is available on regulations.gov.

    Summary of Economic Impacts

    The economic benefits of local and regional procurement have been identified in a number of studies 2 in addition to the USDA LRP pilot program during the period of 2009-2012, the results of which are documented in an independent evaluation report (http://www.fas.usda.gov/newsroom/local-and-regional-food-aid-procurement-pilot-project-independent-evaluation-report). For example, the results of the USDA LRP pilot program included: Cost savings in transport, shipping, and handling; better match between recipients' needs and program commodity availability; and time savings between the procurement and delivery of food, which is especially important in emergency situations. Since commodities purchased under the USDA LRP pilot program did not need to be shipped across oceans and were purchased nearer the final destination, the transport, shipping, and handling costs were on average lower than in-kind food assistance. In projects where recipients were children, improved commodity match resulted in more of the food provided being consumed, yielding nutritional gains. Delivery times for emergency food aid under the USDA LRP pilot program yielded faster delivery than in-kind food aid shipped from the United States. As a result of the USDA LRP pilot program, small-scale producers and suppliers began pooling resources to achieve economies of scale to increase their profitability. The USDA LRP Program is intended to maximize the impact of food assistance, consistent with the positive results achieved under the USDA LRP pilot program.

    2 See, for example, the references included in footnote 1.

    Executive Order 12988

    This rule has been reviewed in accordance with Executive Order 12988. This rule does not preempt State or local laws, regulations, or policies unless they present an irreconcilable conflict with this rule. This rule will not be retroactive.

    Executive Order 12372

    Executive Order 12372, “Intergovernmental Review of Federal Programs,” requires consultation with officials of State and local governments that would be directly affected by the proposed Federal financial assistance. The objectives of the Executive Order are to foster an intergovernmental partnership and a strengthened federalism by relying on State and local processes for the State and local government coordination and review of proposed Federal financial assistance and direct Federal development. This rule will not directly affect State or local officials and, for this reason, it is excluded from the scope of Executive Order 12372.

    Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601-612), as amended by the Small Business Regulatory Enforcement Fairness Act of 1996, generally requires an agency to prepare a regulatory flexibility analysis of any rule that is subject to notice and comment rulemaking under the Administrative Procedure Act (APA) or any other law, unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. The Regulatory Flexibility Act does not apply to this rule because FAS is not required by the APA or any other law to publish a notice of proposed rulemaking with respect to the subject matter of the rule. FAS is unaware of any possible negative effects for U.S. small entities as a result of the USDA LRP Program.

    Executive Order 13132

    This rule has been reviewed under Executive Order 13132, “Federalism.” This rule will not have any substantial direct effect on States, on the relationship between the Federal government and the States, or on the distribution of power and responsibilities among the various levels of government, except as required by law. This rule does not impose substantial direct compliance costs on State and local governments. Therefore, consultation with the States was not required.

    Executive Order 13175

    This rule has been reviewed in accordance with the requirements of Executive Order 13175, “Consultation and Coordination with Indian Tribal Governments.” Executive Order 13175 requires Federal agencies to consult and coordinate with tribes on a government-to-government basis on policies that have tribal implications, including regulations, legislative comments or proposed legislation, and other policy statements or actions that have substantial direct effects on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes. FAS does not expect this rule to have any effect on Indian tribes.

    Unfunded Mandates

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA) does not apply to this rule because it does not impose any enforceable duty or contain any unfunded mandate as described under the UMRA.

    List of Subjects in 7 CFR Part 1590

    Food assistance programs, Grant programs—agriculture, Technical assistance, Local and regional procurement.

    For the reasons stated in the preamble, the Foreign Agricultural Service amends 7 CFR chapter XV by adding part 1590 to read as follows:

    PART 1590—UNITED STATES DEPARTMENT OF AGRICULTURE LOCAL AND REGIONAL FOOD AID PROCUREMENT PROGRAM Sec. 1590.1 Purpose and applicability. 1590.2 Definitions. 1590.3 Eligibility and conflicts of interest. 1590.4 Application process. 1590.5 Agreements. 1590.6 Procurement of eligible commodities. 1590.7 Payments. 1590.8 Transportation of procured commodities. 1590.9 Entry, handling, and labeling of commodities and notification requirements. 1590.10 Damage to or loss of procured commodities. 1590.11 Claims for damage to or loss of procured commodities. 1590.12 Use of procured commodities, FAS-provided funds, and program income. 1590.13 Monitoring and evaluation requirements. 1590.14 Reporting and record keeping requirements. 1590.15 Subrecipients. 1590.16 Noncompliance with an agreement. 1590.17 Suspension and termination of agreements. 1590.18 Opportunities to object and appeals. 1590.19 Audit requirements. 1590.20 Paperwork Reduction Act. Authority:

    7 U.S.C. 1726c.

    § 1590.1 Purpose and applicability.

    (a)(1) This part sets forth the general terms and conditions governing the award of funds by the Foreign Agricultural Service (FAS) to recipients under the U.S. Department of Agriculture (USDA) Local and Regional Food Aid Procurement Program (USDA LRP Program). Under the USDA LRP Program, recipients use FAS-provided funds to purchase eligible commodities in developing countries and pay for associated administrative and operational costs related to the implementation of field-based projects in a foreign country pursuant to an agreement with FAS.

    (2) Funds provided by FAS under the USDA LRP Program may be used to provide food assistance in the form of development assistance, an emergency response, or both through a field-based project. Field-based projects intended to provide development assistance will be implemented for a period of not less than one year. Food assistance may be provided under the USDA LRP Program through local and regional procurement, food vouchers, and cash transfers.

    (3) FAS will consult with the United States Agency for International Development in the development and implementation of field-based projects that will provide food assistance in the form of an emergency response.

    (b)(1) The Office of Management and Budget (OMB) issued guidance on Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR part 200. In 2 CFR 400.1, USDA adopted OMB's guidance in subparts A through F of 2 CFR part 200, as supplemented by 2 CFR part 400, as USDA's policies and procedures for uniform administrative requirements, cost principles, and audit requirements for federal awards.

    (2) The OMB guidance at 2 CFR part 200, as supplemented by 2 CFR part 400 and by this part, applies to the USDA LRP Program, except as provided in paragraph (e) of this section.

    (c) Except as otherwise provided in this part, other regulations that are generally applicable to grants and cooperative agreements of USDA, including the applicable regulations set forth in 2 CFR chapters I, II, and IV, also apply to the USDA LRP Program.

    (d) In accordance with 7 U.S.C. 1726c(a)(4), assistance under the USDA LRP Program may be provided to a private voluntary organization or a cooperative that is, to the extent practicable, registered with the Administrator of the U.S. Agency for International Development or to an intergovernmental organization, such as the World Food Program.

    (e)(1) The OMB guidance at subparts A through E of 2 CFR part 200, and the corresponding provisions of 2 CFR part 400 and of this part, apply to all awards by FAS under the USDA LRP Program to all recipients that are private voluntary organizations or cooperatives, including a private voluntary organization that is a foreign organization, as defined in 2 CFR 200.47, and a cooperative that is a for-profit entity or a foreign organization. Subpart F of 2 CFR part 200, and the corresponding provisions of 2 CFR part 400 and this part, apply only to awards by FAS to recipients that are private voluntary organizations or non-profit cooperatives but that are not foreign organizations. The OMB guidance at 2 CFR part 200, and the provisions of 2 CFR part 400 and of this part, do not apply to an award by FAS under the USDA LRP Program to a recipient that is a foreign public entity, as defined in 2 CFR 200.46, and, therefore, they do not apply to an intergovernmental organization.

    (2) The OMB guidance at subparts A through E of 2 CFR part 200, and the corresponding provisions of 2 CFR part 400 and of this part, apply to all subawards to all subrecipients under this part, except in cases:

    (i) Where the subrecipient is a foreign public entity; or

    (ii) Where FAS determines that the application of these provisions to a subaward to a subrecipient that is a foreign organization would be inconsistent with the international obligations of the United States or the statutes or regulations of a foreign government or would not be in the best interest of the United States.

    § 1590.2 Definitions.

    These are definitions for terms used in this part. The definitions in 2 CFR part 200, as supplemented in 2 CFR part 400, are also applicable to this part, with the exception that, if a term that is defined in this section is defined differently in 2 CFR part 200 or part 400, the definition in this section will apply to such term as used in this part.

    Activity means a discrete undertaking within a project to be carried out by a recipient, directly or through a subrecipient, that is specified in an agreement and is intended to fulfill a specific objective of the agreement.

    Agreement means a legally binding grant or cooperative agreement entered into between FAS and a recipient to implement a field-based project under the USDA LRP Program.

    Codex Alimentarius means the program of the United Nations Food and Agriculture Organization and the World Health Organization that was created to develop food standards, guidelines, and related texts, such as codes of practice to protect the health of consumers, ensure fair trade practices in the food trade, and promote the coordination of all food standards work undertaken by international governmental and nongovernmental organizations.

    Cooperative means a private sector organization whose members own and control the organization and share in its services and its profits and that provides business services and outreach in cooperative development for its membership.

    Cost sharing or matching means the portion of project expenses, or necessary goods and services provided to carry out the project, not paid or acquired with Federal funds. The term may include cash or in-kind contributions provided by recipients, subrecipients, foreign public entities, foreign organizations, or private donors.

    Country of origin means the country in which the procured commodities were produced.

    Developing country means a country that has a shortage of foreign exchange earnings and has difficulty meeting all of its food needs through commercial channels.

    Development assistance means an activity or activities that will enhance the availability of, access to, or the utilization of adequate food to meet the caloric and nutritional needs of populations suffering from chronic food insecurity, or enhance the ability of such populations to build assets to protect against chronic food insecurity.

    Disaster means an event or a series of events that creates a need for emergency food assistance by threatening or resulting in significantly decreased availability of, or access to, food or the erosion of the ability of populations to meet food needs. Disasters include, but are not limited to, natural events such as floods, earthquakes, and drought; crop failure; disease; civil strife and war; and economic turmoil. Disasters can be characterized as slow or rapid-onset. The situation caused by a disaster is a “food crisis.”

    Disburse means to make a payment to liquidate an obligation.

    Eligible commodity means an agricultural commodity, or the product of an agricultural commodity, that is produced in and procured from a developing country, and that meets each nutritional, quality, and labeling standard of the target country, as determined by the Secretary of Agriculture, as well as any other criteria specified in section § 1590.6(b).

    Emergency response means an activity that is designed to meet the urgent food and nutritional needs of those affected by acute or transitory food insecurity as a result of a disaster.

    FAS means the Foreign Agricultural Service of the United States Department of Agriculture.

    FAS-provided funds means U.S. dollars provided under an agreement to a recipient, or through a subagreement to a subrecipient, for expenses for the purchase, ocean and overland transportation, and storage and handling of the procured commodities; expenses involved in the administration, monitoring, and evaluation of the activities under the agreement; and operational costs related to the implementation of the field-based project under the agreement.

    Field-based project or project means the totality of the activities to be carried out by a recipient, directly or through a subrecipient, to fulfill the objectives of an agreement. It can either stand alone or be an add-on component to another program that provides other forms of assistance to the food insecure.

    Food assistance means assistance that is provided to members of a targeted vulnerable group to meet their food needs.

    Local procurement means the procurement of food by a recipient, directly or through a subrecipient, in the target country to assist beneficiaries within that same country. The use of food vouchers to obtain food under an agreement is a form of local procurement.

    Overland transportation means any transportation other than ocean transportation. It includes internal transportation within the target country and regional transportation within the target region.

    Private voluntary organization means a not-for-profit, nongovernmental organization (in the case of a United States organization, an organization that is exempt from Federal income taxes under section 501(c)(3) of the Internal Revenue Code of 1986) that receives funds from private sources, voluntary contributions of money, staff time, or in-kind support from the public, and that is engaged in or is planning to engage in voluntary, charitable, or development assistance activities (other than religious activities).

    Procured commodities means the eligible commodities that are procured by a recipient, directly or through a subrecipient, under an agreement.

    Program Income means funds received by a recipient or subrecipient as a direct result of carrying out an approved activity under an agreement. The term includes but is not limited to income from fees for services performed, the use or rental of real or personal property acquired under a Federal award, the sale of items fabricated under a Federal award, license fees, and royalties on patents and copyrights, and principal and interest on loans made with Federal award funds. Program income does not include FAS-provided funds or interest earned on such funds; or funds provided for cost sharing or matching contributions, refunds or rebates, credits, discounts, or interest earned on any of them.

    Purchase country means a developing country in which the procured commodities are purchased.

    Recipient means an entity that enters into an agreement with FAS and receives FAS-provided funds to carry out activities under the agreement. The term recipient does not include a subrecipient.

    Regional procurement means the procurement of food by a recipient, directly or through a subrecipient, in a developing country that is located on the same continent as the target country. Regional procurement does not include the purchase of food in the target country.

    Subrecipient means an entity that enters into a subagreement with a recipient for the purpose of implementing in the target country activities described in an agreement. The term does not include an individual that is a beneficiary under the agreement.

    Target country means the developing country in which activities are implemented under an agreement.

    Target region means the continent on which the target country is located or nearby.

    USDA means the United States Department of Agriculture.

    Voluntary committed cost sharing or matching contributions means cost sharing or matching contributions specifically pledged on a voluntary basis by an applicant in its proposal, which become binding as part of an agreement. Voluntary committed cost sharing or matching contributions may be provided in the form of cash or in-kind contributions.

    § 1590.3 Eligibility and conflicts of interest.

    (a)(1) A private voluntary organization or a cooperative is eligible to submit an application under this part to become a recipient under the USDA LRP Program if it is either registered with the Administrator of the U.S. Agency for International Development or FAS has determined that such registration is impracticable. FAS will set forth specific eligibility information, including any factors or priorities that will affect the eligibility of an applicant or application for selection, in the full text of the applicable notice of funding opportunity posted on the U.S. Government Web site for grant opportunities.

    (2) FAS may give preference for funding to eligible entities that have, or are working toward, projects under the McGovern-Dole International Food for Education and Child Nutrition Program established under section 3107 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 1736o-1).

    (b) Applicants, recipients, and subrecipients must comply with policies established by FAS pursuant to 2 CFR 400.2(a), and with the requirements in 2 CFR 400.2(b), regarding conflicts of interest.

    § 1590.4 Application process.

    (a) An applicant seeking to enter into an agreement with FAS must submit an application, in accordance with this section, that sets forth its proposal to carry out activities under the USDA LRP Program in a proposed target country(ies). An application must contain the items specified in paragraph (b) of this section and any other items required by the notice of funding opportunity and must be submitted electronically to FAS at the address set forth in the notice of funding opportunity.

    (b) An applicant must include the following items in its application:

    (1) A completed Form SF-424, which is a standard application for Federal assistance;

    (2) An introduction and impact analysis, as specified in the notice of funding opportunity;

    (3) A plan of operation that contains the elements specified in the notice of funding opportunity;

    (4) A summary line item budget and a budget narrative that indicate:

    (i) The amount(s) of any FAS-provided funds, program income, and voluntary committed cost sharing or matching contributions that the applicant proposes to use to fund:

    (A) Administrative costs;

    (B) Commodity procurement costs, including costs for locally and regionally procured commodities, and food vouchers;

    (C) Transportation, storage, and handling costs; and

    (D) Activity costs;

    (ii) Where applicable, how the applicant's indirect cost rate will be applied to each type of expense; and

    (iii) The amount of funding that will be provided to each proposed subrecipient under the agreement;

    (5) A project-level results framework that outlines the changes that the applicant expects to accomplish through the proposed project and is based on the USDA LRP Program-level results framework;

    (6) Unless otherwise specified in the notice of funding opportunity, an evaluation plan that describes the proposed design, methodology, and time frame of the project's evaluation activities, and how the applicant intends to manage these activities, and that will include a baseline study, interim evaluation, final evaluation, and any applicable special studies; and

    (7) Any additional required items set forth in the notice of funding opportunity.

    (c) Each applicant (unless the applicant has an exception approved by FAS under 2 CFR 25.110(d)) is required to:

    (1) Be registered in the System for Award Management (SAM) before submitting its application;

    (2) Provide a valid unique entity identifier in its application; and

    (3) Continue to maintain an active SAM registration with current information at all times during which it has an active Federal award or an application or plan under consideration by a Federal awarding agency.

    § 1590.5 Agreements.

    (a) After FAS approves a proposal by an applicant, FAS will negotiate an agreement with the applicant. The agreement will set forth the obligations of FAS and the recipient.

    (b) The agreement will specify the general information required in 2 CFR 200.210(a), as applicable.

    (c) The agreement will incorporate general terms and conditions, pursuant to 2 CFR 200.210(b), as applicable.

    (d) To the extent that this information is not already included in the agreement pursuant to paragraphs (b) and (c) of this section, the agreement will also include the following:

    (1) A plan of operation, which will include the following:

    (i) The objectives to be accomplished under the project;

    (ii) A detailed description of each activity to be implemented;

    (iii) The target country(ies) and the areas of the target country(ies) in which the activities will be implemented;

    (iv) The method(s) and criteria for selecting the beneficiaries of the activities;

    (v) Any contributions for cost sharing or matching, including cash and non-cash contributions, that the recipient expects to receive from non-FAS sources that:

    (A) Are critical to the implementation of the activities; or

    (B) Enhance the implementation of the activities;

    (vi) Any subrecipient that will be involved in the implementation of the activities, and the criteria for selecting a subrecipient that has not yet been identified;

    (vii) Any other governmental or nongovernmental entities that will be involved in the implementation of the activities; and

    (viii) Any additional items specified by FAS during the negotiation of the agreement;

    (2) Requirements relating to the procurement of the eligible commodities, as set forth in § 1590.6;

    (3) A budget, which will set forth the maximum amounts of FAS-provided funds, program income, and voluntary committed cost sharing or matching contributions that may be used for each line item; and

    (4) Performance goals for the agreement, including a list of results to be achieved by the activities and corresponding indicators, targets, and time frames.

    (e) The agreement will also include specific terms and conditions, and certifications and representations, including the following:

    (1) The agreement will prohibit the use of the procured commodities, food vouchers, or cash transfers for any purpose other than food assistance;

    (2) The agreement will prohibit the resale or transshipment of the procured commodities by the recipient to a country other than the target country specified in the agreement for so long as the recipient has title to such commodities;

    (3) The recipient will assert that it has taken action to ensure that any eligible commodities that will be procured regionally will be imported free from all customs, duties, tolls, and taxes. The recipient must submit information to FAS to support this assertion;

    (4) The recipient will assert that, to the best of its knowledge, the eligible commodities can be procured locally or regionally without a disruptive impact on farmers located in, or the economy of, the target country or any country in the target region. The recipient will also assert that, to the best of its knowledge, the eligible commodities can be procured without unduly disrupting world prices for agricultural commodities or normal patterns of commercial trade with foreign countries. The recipient must submit information to FAS to support these assertions; and

    (5) The recipient will assert that adequate transportation and storage facilities are available in the target country to prevent spoilage or waste of the eligible commodities. The recipient must submit information to FAS to support these assertions.

    (f) FAS may enter into a multicountry agreement.

    (g) FAS may provide funds under a multiyear agreement contingent upon the availability of funds.

    § 1590.6 Procurement of eligible commodities.

    (a)(1) When using funds provided by FAS under the USDA LRP Program to make a local or regional procurement of food, including through the use of food vouchers, the recipient, or a subrecipient, must procure eligible commodities.

    (2) The agreement will specify the types of eligible commodities approved for procurement; the approved purchase country(ies); and the approved method(s) of procurement (local procurement, regional procurement, food vouchers, or a combination of these methods). The agreement will prohibit the recipient from procuring eligible commodities from any country not specified in the agreement or utilizing methods of procurement that differ from those approved in the agreement.

    (b) In carrying out an agreement, the recipient must comply with the following requirements, as applicable, relating to the procurement of eligible commodities under the agreement:

    (1) The recipient must procure eligible commodities at a reasonable market price with respect to the economy of the purchase country, as determined by FAS.

    (2) If the recipient procures eligible commodities that are grains, legumes, and pulses, the commodities must meet the food safety standards of the target country; provided, however, that if the target country does not have food safety standards for grains, legumes, and pulses, then the recipient must ensure that such commodities meet the Codex Alimentarius Recommended International Code of Practice: General Principles of Food Hygiene CAC/RCP 1-1969 Rev 4-2003, including Annex Hazard Analysis and Critical Control Point (HACCP) System and Guidelines.

    (3) If the recipient procures eligible commodities that are food products other than grains, legumes or pulses, such as processed foods, fortified blended foods, and enriched foods, the commodities must comply, in terms of raw materials, composition, or manufacture, unless otherwise specified in the agreement, with the Codex Alimentarius Recommended International Code of Practice: General Principles of Food Hygiene CAC/RCP 1-1969 Rev 4-2003 including Annex Hazard Analysis and Critical Control Point (HACCP) System and Guidelines.

    (4) If the recipient procures eligible commodities that are cereals, groundnuts, or tree nuts, or food products derived from or containing cereals, groundnuts, or tree nuts, the commodities must be tested for aflatoxin and have their moisture content certified. The maximum acceptable total aflatoxin level is 20 parts per billion, the U.S. Food and Drug Administration action level for aflatoxin in human foods.

    (5) If the recipient procures an unprocessed commodity, it must ensure that the commodity has been produced either in the target country or in another developing country within the target region.

    (6) If the recipient purchases a processed commodity, it must ensure that the processing took place, and the primary ingredient has been produced, either in the target country or in another developing country within the target region. The primary ingredient is determined on the basis of weight in the case of solid foods, or volume in the case of liquids.

    (7) If the recipient purchases eligible commodities through a competitive tender, the recipient must specify the minimally acceptable commodity specifications and food safety and quality assurance standards in the tender. Purchases that are made from commercial wholesalers in a local or regional market must meet the food safety and quality assurance standards specified in paragraphs (b)(2), (3) and (4) of this section.

    (8) The recipient must enter into a contract that complies with this paragraph for every local or regional procurement of eligible commodities, other than through food vouchers, from a commodity vendor. The recipient must ensure that the contract between the recipient and the commodity vendor clearly specifies the country of origin and specific market(s) in which the procurement will take place, commodity safety and quality assurance standards, product specifications, price per metric ton, and delivery terms. Recipients will be required to make such contracts available to FAS upon request.

    (9) The recipient must enter into a contract with an established inspection service to survey and report on the safety, quality, and condition of all procured commodities, other than those procured through food vouchers, prior to their shipment and distribution. The recipient will be required to submit any survey reports or certificates issued by such inspection service to FAS upon request.

    (10) The recipient must enter into a contract with each vendor expected to redeem food vouchers distributed under an agreement that specifies the conditions under which the vouchers will be redeemed for food. The recipient must ensure that beneficiaries use food vouchers to purchase eligible commodities that meet the food safety and quality assurance standards specified in paragraphs (b)(2), (3) and (4) of this section.

    (c) The agreement will require the recipient to submit a procurement plan for FAS's approval within the time period specified in the agreement. The procurement plan will include time periods, broken down by month, for commodity procurement, delivery, and distribution and, where applicable, the distribution of food vouchers. The agreement will require the recipient to comply with the procurement plan, as approved by FAS, and will prohibit the recipient from making any changes to the procurement plan without obtaining the prior written approval of FAS.

    § 1590.7 Payments.

    (a) If the agreement authorizes the payment of FAS-provided funds, FAS will generally provide the funds to the recipient on an advance payment basis, in accordance with 2 CFR 200.305(b). In addition, the following procedures will apply to advance payments:

    (1) A recipient may request advance payments of FAS-provided funds, up to the total amount specified in the agreement. When making an advance payment request, a recipient must provide, for each agreement for which it is requesting an advance, total expenditures to date; an estimate of expenses to be covered by the advance; total advances previously requested, if any; the amount of cash on hand from the preceding advance; and, if necessary, a request to roll over any unused funds from the preceding advance to the current request period. The advance payment request must take into account any program income earned since the preceding advance.

    (2) Whenever possible, the recipient should consolidate advance payment requests to cover anticipated cash needs for all food assistance program awards made by FAS to the recipient. A recipient may request advance payments with no minimum time required between requests.

    (3) A recipient must minimize the amount of time that elapses between the transfer of funds by FAS and the disbursement of funds by the recipient. A recipient must fully disburse funds from the preceding advance before it submits a new advance request for the same agreement, with the exception that the recipient may request to retain the balance of any funds that have not been disbursed and roll it over into a new advance request if the new advance request is made within 90 days after the preceding advance was made.

    (4) FAS will review all requests to roll over unexpended funds from the preceding advance that have not been disbursed and make a decision based on the merits of the request. FAS will consider factors such as the amount of funding that the recipient is requesting to roll over, the length of time that the recipient has been in possession of the funds, any unforeseen or extenuating circumstances, the recipient's history of performance, and findings from recent financial audits or compliance reviews.

    (5) FAS will not approve any request for an advance or rollover of funds if the most recent financial report, as specified in the agreement, is past due, or if any required report, as specified in any open agreement between the recipient and FAS or the Commodity Credit Corporation (CCC), is more than three months in arrears.

    (6)(i) A recipient must return to FAS any funds advanced by FAS that have not been disbursed as of the 91st day after the advance was made; provided, however, that paragraphs (a)(6)(ii) and (iii) of this section will apply if the recipient submits a request to FAS before that date to roll over the funds into a new advance.

    (ii) If a recipient submits a request to roll over funds into a new advance, and FAS approves the rollover of funds, such funds will be considered to have been advanced on the date that the recipient receives the approval notice from FAS, for the purposes of complying with the requirement in paragraph (a)(6)(i) of this section.

    (iii) If a recipient submits a request to roll over funds into a new advance, and FAS does not approve the rollover of some or all of the funds, such funds must be returned to FAS.

    (iv) If the recipient must return funds to FAS in accordance with paragraph (a)(6) of this section, the recipient must return the funds on the later of five business days after the 91st day after the funds were advanced, or five business days after the date on which the recipient receives notice from FAS that it has denied the recipient's request to roll over the funds; provided, however, that FAS may specify a different date for the return of funds in a written communication to the recipient.

    (7) Except as may otherwise be provided in the agreement, the recipient must deposit and maintain in an insured bank account located in the United States all funds advanced by FAS. The account must be interest-bearing, unless one of the exceptions in 2 CFR 200.305(b)(8) applies, or FAS determines that this requirement would constitute an undue burden. A recipient will not be required to maintain a separate bank account for advance payments of FAS-provided funds. However, a recipient must be able to separately account for the receipt, obligation, and expenditure of funds under each agreement.

    (8) A recipient may retain, for administrative purposes, up to $500 per Federal fiscal year of any interest earned on funds advanced under an agreement. The recipient must remit to the U.S. Department of Health and Human Services, Payment Management System, any additional interest earned during the Federal fiscal year on such funds, in accordance with the procedures in 2 CFR 200.305(b)(9).

    (b) If a recipient is required to pay funds to FAS in connection with an agreement, the recipient must make such payment in U.S. dollars, unless otherwise approved in advance by FAS.

    § 1590.8 Transportation of procured commodities.

    (a) The recipient must acquire all transportation of procured commodities under the USDA LRP Program. FAS will pay for the transportation, as provided for in the agreement, through an advance payment or reimbursement to the recipient.

    (b) A recipient that acquires ocean transportation in accordance with paragraph (a) of this section must comply with the requirements of 46 U.S.C. 55305, regarding carriage on U.S.-flag vessels.

    (c) The recipient may only use the services of a transportation company that is legally operating in the target country or another country within the target region, and that would not have a conflict of interest in transporting the commodities.

    (d) The recipient must declare in the transportation contract the point at which the ocean carrier or overland transportation company will take custody of the eligible commodities to be transported.

    § 1590.9 Entry, handling, and labeling of procured commodities and notification requirements.

    (a) The recipient must make all necessary arrangements for receiving regionally procured commodities in the target country, including obtaining appropriate approvals for entry and transit. The recipient must make arrangements with the target country government for all regionally procured commodities to be imported and distributed free from all customs duties, tolls, and taxes, unless otherwise specified in the agreement.

    (b) The recipient must, as provided in the agreement, arrange for transporting, storing, and distributing the procured commodities from the designated point and time where title to the commodities passes to the recipient.

    (c) The recipient must store and maintain all of the procured commodities in good condition from the time of delivery at the port of entry or the point of receipt from the commodity vendor(s) until their distribution.

    (d)(1) If a recipient arranges for the packaging or repackaging of the procured commodities, the recipient must ensure that the packaging:

    (i) Is plainly labeled in the language of the target country;

    (ii) Contains the name of the procured commodities;

    (iii) Contains the name of the country of origin;

    (iv) Includes a statement indicating that the procured commodities are being furnished through a project funded by the United States Department of Agriculture; and

    (v) Includes a statement indicating that the procured commodities must not be sold, bartered, or exchanged.

    (2) If a recipient distributes procured commodities that are prepackaged or not packaged, the recipient must display a sign at the distribution site that includes the name of the procured commodities, the country of origin, a statement indicating that the procured commodities are being furnished through a project funded by the United States Department of Agriculture, and a statement indicating that the procured commodities must not be sold, bartered, or exchanged.

    (3) If a recipient distributes food vouchers or cash transfers, the recipient must display a sign at the distribution site that includes a statement indicating that the food vouchers or cash transfers are being furnished through a project funded by the United States Department of Agriculture. The recipient must ensure that all paper vouchers or receipts for electronic vouchers are printed with a statement indicating that the vouchers are being furnished through a project funded by the United States Department of Agriculture. The vouchers must also include a statement indicating that they must not be sold, bartered, or exchanged.

    (e) The recipient must ensure that signs are displayed at all activity implementation and commodity, food voucher, or cash transfer distribution sites to inform beneficiaries that funding for the project was provided by the United States Department of Agriculture.

    (f) The recipient must also ensure that all public communications in relation to the project, the activities, or the procured commodities, whether made through print, broadcast, digital, or other media, include a statement acknowledging that funding was provided by the United States Department of Agriculture.

    (g) FAS may waive compliance with one or more of the labeling and notification requirements in paragraphs (d), (e) and (f) of this section if a recipient demonstrates to FAS that the requirement presents a safety or security risk in the target country. If a recipient determines that compliance with a labeling or notification requirement poses an imminent threat of destruction of property, injury, or loss of life, the recipient must submit a waiver request to FAS as soon as possible. The recipient will not have to comply with such requirement during the period prior to the issuance of a waiver determination by FAS. A recipient may submit a written request for a waiver at any time after the agreement has been signed.

    (h) In exceptional circumstances, FAS may, on its own initiative, waive one or more of the labeling and notification requirements in paragraphs (d), (e) and (f) of this section for programmatic reasons.

    § 1590.10 Damage to or loss of procured commodities.

    (a) The recipient will be responsible for the procured commodities following the transfer of title to the procured commodities from the commodity vendor(s) to the recipient. FAS may require the recipient to purchase transportation insurance against commodity loss or damage.

    (b) A recipient must inform FAS, in the manner and within the time period set forth in the agreement, of any damage to or loss of the procured commodities that occurs following the transfer of title to the procured commodities to the recipient. The recipient must take all steps necessary to protect its interests and the interests of FAS with respect to any damage to or loss of the procured commodities that occurs after title has been transferred to the recipient.

    (c) The recipient will be responsible for arranging for an independent cargo surveyor to inspect any procured commodities transported by ocean upon discharge from the vessel and to prepare a survey or outturn report. The report must show the quantity and condition of the procured commodities discharged from the vessel and must indicate the most likely cause of any damage noted in the report. The report must also indicate the time and place when the survey took place. All discharge surveys must be conducted contemporaneously with the discharge of the vessel, unless FAS determines that failure to do so was justified under the circumstances. For procured commodities shipped on a through bill of lading, the recipient must also obtain a delivery survey. All surveys obtained by the recipient must, to the extent practicable, be conducted jointly by the surveyor, the recipient, and the carrier, and the survey report must be signed by all three parties. The recipient must obtain a copy of each discharge or delivery survey report within 45 days after the completion of the survey. The recipient must make each such report available to FAS upon request, or in the manner specified in the agreement. FAS will reimburse the recipient for the reasonable costs of these services, as determined by FAS, in the manner specified in the agreement.

    (d) When procured commodities are transported overland, the recipient will ensure that overland transportation contracts include a requirement that a loading and offloading report be prepared and provided to the recipient. The report must show the quantity and condition of the procured commodities loaded on the overland conveyance, as well as the time and place that the loading and offloading occurred. The recipient must obtain a copy of the report from the overland transportation company within 45 days after the completion of the commodity delivery. The recipient must make each such report available to FAS upon request, or in the manner specified in the agreement. FAS will reimburse the recipient for the reasonable costs of these services, as determined by FAS, in the manner specified in the agreement.

    (e) If procured commodities are damaged or lost during the time that they are in the care of an ocean carrier or overland transportation company:

    (1) The recipient must ensure that any reports, narrative chronology, or other commentary prepared by the independent cargo surveyor, and any such documentation prepared by a port authority, stevedoring service, or customs official, or an official of the transit or target country government or the transportation company, are provided to FAS;

    (2) The recipient must provide to FAS the names and addresses of any individuals known to be present at the time of discharge or unloading, or during the survey, who can verify the quantity of damaged or lost procured commodities;

    (3) If the damage or loss occurred with respect to a bulk shipment on an ocean carrier, the recipient must ensure that the independent cargo surveyor:

    (i) Observes the discharge of the cargo;

    (ii) Reports on discharging methods, including scale type, calibrations, and any other factors that may affect the accuracy of scale weights, and, if scales are not used, states the reason therefor and describes the actual method used to determine weight;

    (iii) Estimates the quantity of cargo, if any, lost during discharge through carrier negligence;

    (iv) Advises on the quality of sweepings;

    (v) Obtains copies of port or vessel records, if possible, showing the quantity discharged; and

    (vi) Notifies the recipient immediately if the surveyor has reason to believe that the correct quantity was not discharged or if additional services are necessary to protect the cargo; and

    (4) If the damage or loss occurred with respect to a container shipment on an ocean carrier, the recipient must ensure that the independent cargo surveyor lists the container numbers and seal numbers shown on the containers, indicates whether the seals were intact at the time the containers were opened, and notes whether the containers were in any way damaged.

    (e) If the recipient has title to the procured commodities, and procured commodities valued in excess of $5,000 are damaged at any time prior to their distribution under the agreement, regardless of the party at fault, the recipient must immediately arrange for an inspection by a public health official or other competent authority approved by FAS and provide to FAS a certification by such public health official or other competent authority regarding the exact quantity and condition of the damaged commodities. The value of damaged procured commodities must be determined on the basis of the commodity acquisition, transportation, and related costs incurred by the recipient and paid by FAS with respect to such commodities. The recipient must inform FAS of the results of the inspection and indicate whether the damaged procured commodities are:

    (1) Fit for the use authorized in the agreement and, if so, whether there has been a diminution in quality; or

    (2) Unfit for the use authorized in the agreement.

    (f)(1) If the recipient has title to the procured commodities, the recipient must arrange for the recovery of that portion of the procured commodities designated as suitable for the use authorized in the agreement. The recipient must dispose of procured commodities that are unfit for such use in the following order of priority:

    (i) Sale for the most appropriate use, i.e., animal feed, fertilizer, industrial use, or another use approved by FAS, at the highest obtainable price;

    (ii) Donation to a governmental or charitable organization for use as animal feed or another non-food use; or

    (iii) Destruction of the procured commodities if they are unfit for any use, in such manner as to prevent their use for any purpose.

    (2) The recipient must arrange for all U.S. Government markings to be obliterated or removed before the procured commodities are transferred by sale or donation under paragraph (f)(1) of this section.

    (g) A recipient may retain any proceeds generated by the disposal of the procured commodities in accordance with paragraph (f)(1) of this section and must use the retained proceeds for expenses related to the disposal of the procured commodities and for activities specified in the agreement.

    (h) The recipient must notify FAS immediately and provide detailed information about the actions taken in accordance with paragraph (f) of this section, including the quantities, values, and dispositions of procured commodities determined to be unfit.

    § 1590.11 Claims for damage to or loss of procured commodities.

    (a) The recipient will be responsible for claims arising out of damage to or loss of a quantity of the procured commodities after the transfer of title to the procured commodities from the commodity vendor(s) to the recipient.

    (b) If the recipient has title to procured commodities that have been damaged or lost, and the value of the damaged or lost procured commodities is estimated to be in excess of $20,000, the recipient must:

    (1) Notify FAS immediately and provide detailed information about the circumstances surrounding such damage or loss, the quantity of damaged or lost procured commodities, and the value of the damage or loss;

    (2) Promptly upon discovery of the damage or loss, initiate a claim arising out of such damage or loss, including, if appropriate, initiating an action to collect pursuant to a commercial insurance contract;

    (3) Take all necessary action to pursue the claim diligently and within any applicable periods of limitations; and

    (4) Provide to FAS copies of all documentation relating to the claim.

    (c) If the recipient has title to procured commodities that have been damaged or lost, and the value of the damaged or lost procured commodities is estimated to be $20,000 or less, the recipient must notify FAS in accordance with the agreement and provide detailed information about the damage or loss in the next report required to be filed under § 1590.14(e).

    (d)(1) The value of a claim for lost procured commodities will be determined on the basis of the commodity acquisition, transportation, and related costs incurred by the recipient and paid by FAS with respect to such commodities.

    (2) The value of a claim for damaged procured commodities will be determined on the basis of the commodity acquisition, transportation, and related costs incurred by the recipient and paid by FAS with respect to such commodities, less any funds generated if such commodities are sold in accordance with § 1590.10(f)(1).

    (e) If FAS determines that a recipient has not initiated a claim or is not exercising due diligence in the pursuit of a claim, FAS may require the recipient to assign its rights to pursue the claim to FAS. Failure by the recipient to initiate a claim or exercise due diligence in the pursuit of a claim will be considered by FAS during the review of proposals for subsequent food assistance awards.

    (f)(1) The recipient may retain any funds obtained as a result of a claims collection action initiated by it in accordance with this section, or recovered pursuant to any insurance policy or other similar form of indemnification, but such funds must be expended as provided for in the agreement or for other purposes approved in advance by FAS.

    (2) FAS will retain any funds obtained as a result of a claims collection action initiated by it under this section; provided, however, that if the recipient paid for the transportation of the procured commodities or a portion thereof, FAS will use a portion of such funds to reimburse the recipient for such expense on a prorated basis.

    § 1590.12 Use of procured commodities, FAS-provided funds, and program income.

    (a) A recipient must use the procured commodities, FAS-provided funds, interest, and program income in accordance with the agreement.

    (b) A recipient must not use procured commodities, FAS-provided funds, interest, or program income for any activity or any expense incurred by the recipient or a subrecipient prior to the start date of the period of performance of the agreement or after the agreement is suspended or terminated, without the prior written approval of FAS.

    (c) A recipient must not permit the distribution, handling, or allocation of procured commodities on the basis of political affiliation, geographic location, or the ethnic, tribal or religious identity or affiliation of the potential consumers or beneficiaries.

    (d) A recipient must not permit the distribution, handling, or allocation of procured commodities by the military forces of any government or insurgent group without the specific authorization of FAS.

    (e) A recipient must not use FAS-provided funds to acquire goods and services, either directly or indirectly through another party, in a manner that violates country-specific economic sanction programs, as specified in the agreement.

    (f) A recipient may sell the procured commodities only if the recipient is disposing of damaged procured commodities as specified in § 1590.10.

    (g) A recipient must deposit and maintain all FAS-provided funds and program income in a bank account until they are used for a purpose authorized under the agreement or the FAS-provided funds are returned to FAS in accordance with § 1590.7(a)(6). The account must be insured unless it is in a country where insurance is unavailable. The account must be interest-bearing, unless one of the exceptions in 2 CFR 200.305(b)(8) applies or FAS determines that this requirement would constitute an undue burden. The recipient must comply with the requirements in § 1590.7(a)(7) with regard to the deposit of advance payments by FAS.

    (h)(1) Except as provided in paragraph (h)(2) of this section, a recipient may make adjustments within the agreement budget between direct cost line items without further approval, provided that the total amount of adjustments does not exceed ten percent of the Grand Total Costs, excluding any voluntary committed cost sharing or matching contributions, in the agreement budget. Adjustments beyond these limits require the prior approval of FAS.

    (2) A recipient must not transfer any funds budgeted for participant support costs, as defined in 2 CFR 200.75, to other categories of expense without the prior approval of FAS.

    (i) A recipient may use FAS-provided funds or program income to purchase real or personal property only if local law permits the recipient to retain title to such property. However, the recipient must not use FAS-provided funds or program income to pay for the acquisition, development, construction, alteration or upgrade of real property that is:

    (1) Owned or managed by a church or other organization engaged exclusively in religious pursuits; or

    (2) Used in whole or in part for sectarian purposes, except that a recipient may use FAS-provided funds or program income to pay for repairs to or rehabilitation of a structure located on such real property to the extent necessary to avoid spoilage or loss of procured commodities, but only if the structure is not used in whole or in part for any religious or sectarian purposes while the procured commodities are stored in it. If the use of FAS-provided funds or program income to pay for repairs to or rehabilitation of such a structure is not specifically provided for in the agreement, the recipient must not use the FAS-provided funds or program income for this purpose until it receives written approval from FAS.

    (j) The recipient must comply with 2 CFR 200.321 when procuring goods and services in the United States. When procuring goods and services outside of the United States, the recipient should endeavor to comply with 2 CFR 200.321 where practicable.

    (k) As provided for in the agreement, the recipient must enter into a written contract with each provider of goods, services, or construction work that is valued in excess of the Simplified Acquisition Threshold. Each such contract must require the provider to maintain adequate records to account for all donated commodities, funds, or both furnished to the provider by the recipient. The recipient must submit a copy of the signed contracts to FAS upon request.

    § 1590.13 Monitoring and evaluation requirements.

    (a) The recipient will be responsible for designing a performance monitoring plan for the project, obtaining written approval of the plan from FAS before putting it into effect, and managing and implementing the plan, unless otherwise specified in the agreement.

    (b) The recipient must establish baseline values, annual targets, and life of activity targets for each performance indicator included in the recipient's approved performance monitoring plan, unless otherwise specified in the agreement.

    (c) The recipient must inform FAS, in the manner and within the time period specified in the agreement, of any problems, delays, or adverse conditions that materially impair the recipient's ability to meet the objectives of the agreement. This notification must include a statement of any corrective actions taken or contemplated by the recipient, and any additional assistance requested from FAS to resolve the situation.

    (d) The recipient will be responsible for designing an evaluation plan for the project, obtaining written approval of the plan from FAS before putting it into effect, and arranging for an independent third party to implement the evaluation, unless otherwise specified in the agreement. This evaluation plan will detail the evaluation purpose and scope, key evaluation questions, evaluation methodology, time frame, evaluation management, and cost. This plan will generally be based upon the evaluation plan that the recipient submitted to FAS as part of its application, pursuant to § 1590.4(b)(6), unless the notice of funding opportunity specified that an evaluation plan was not required to be included in the application. The recipient must ensure that the evaluation plan:

    (1) Is designed using the most rigorous methodology that is appropriate and feasible, taking into account available resources, strategy, current knowledge and evaluation practices in the sector, and the implementing environment;

    (2) Is designed to inform management, activity implementation, and strategic decision-making;

    (3) Utilizes analytical approaches and methodologies, based on the questions to be addressed, project design, budgetary resources available, and level of rigor and evidence required, which may be implemented through methods such as case studies, surveys, quasi-experimental designs, randomized field experiments, cost-effectiveness analyses, implementation reviews, or a combination of methods;

    (4) Adheres to generally accepted evaluation standards and principles;

    (5) Uses participatory approaches that seek to include the perspectives of diverse parties and all relevant stakeholders; and

    (6) Where possible, utilizes local consultants and seeks to build local capacity in evaluation.

    (e)(1) Unless otherwise provided in the agreement, the recipient must arrange for evaluations of the project to be conducted by an independent third party that:

    (i) Is financially and legally separate from the recipient's organization; and

    (ii) Has staff with demonstrated methodological, cultural and language competencies, and specialized experience in conducting evaluations of international development programs involving agriculture, trade, education, and nutrition.

    (2) The recipient must provide a written certification to FAS that there is no real or apparent conflict of interest on the part of any recipient staff member or third party entity designated or hired to play a substantive role in the evaluation of activities under the agreement.

    (f) FAS will be considered a key stakeholder in all evaluations conducted as part of the agreement.

    (g)(1) The recipient is responsible for establishing the required financial and human capital resources for monitoring and evaluation of activities under the agreement. The recipient must maintain separate budgets for monitoring and evaluation, and separate budget line items for dedicated recipient monitoring and evaluation staff and independent third-party evaluation contracts.

    (2) Personnel at the recipient's headquarters offices and field offices with specialized expertise and experience in monitoring and evaluation may be used by the recipient for dedicated monitoring and evaluation. Unless otherwise specified in the agreement or approved evaluation plan, all evaluations must be managed by the recipient's evaluation experts outside of the recipient's line management for the activities.

    (h) FAS may independently conduct or commission an evaluation of a single agreement or an evaluation that includes multiple agreements. A recipient must cooperate, and comply with any demands for information or materials made in connection with any evaluation conducted or commissioned by FAS. Such evaluations may be conducted by FAS internally or by an FAS-hired external evaluation contractor.

    § 1590.14 Reporting and recordkeeping requirements.

    (a) A recipient must comply with the performance and financial monitoring and reporting requirements in the agreement and 2 CFR 200.327 through 200.329.

    (b) The recipient must submit financial reports to FAS in accordance with the schedule provided in the agreement. Such reports must provide an accurate accounting of FAS-provided funds, interest earned, program income, and voluntary committed cost sharing or matching contributions.

    (c)(1) The recipient must submit performance reports to FAS, in the manner specified in the agreement. These reports must include the information required in 2 CFR 200.328(b)(2), including additional pertinent information regarding the recipient's progress, measured against established indicators, baselines, and targets, towards achieving the expected results specified in the agreement. This reporting must include, for each performance indicator, a comparison of actual accomplishments with the baseline and the targets established for the period. When actual accomplishments deviate significantly from targeted goals, the recipient must provide an explanation in the report.

    (2) The recipient must ensure the accuracy and reliability of the performance data submitted to FAS in performance reports. At any time during the period of performance of the agreement, FAS may review the recipient's performance data to determine whether it is accurate and reliable. A recipient must comply with all requests made by FAS or an entity designated by FAS in relation to such reviews.

    (d) Baseline, interim, and final evaluation reports are required for all agreements for development assistance projects, unless otherwise specified in the agreement. A rapid needs assessment and a final evaluation report are required for all agreements for emergency response projects, unless otherwise specified in the agreement. An interim evaluation report is not required for emergency response projects, unless otherwise specified in the agreement. The reports must be submitted in accordance with the timeline provided in the FAS-approved evaluation plan. Evaluation reports submitted to FAS will be made public in an effort to increase accountability and transparency and share lessons learned and best practices.

    (e) A recipient must submit reports to FAS, using a form as prescribed by FAS, covering the receipt, handling, and disposition of the procured commodities and, if applicable, food vouchers and cash transfers. Such reports must be submitted to FAS, by the dates and for the reporting periods specified in the agreement, until all of the procured commodities and, if applicable, food vouchers and cash transfers have been distributed and such disposition has been reported to FAS.

    (f) If requested by FAS, the recipient must provide to FAS additional information or reports relating to the agreement.

    (g) If a recipient requires an extension of a reporting deadline, it must ensure that FAS receives an extension request at least five business days prior to the reporting deadline. FAS may decline to consider a request for an extension that it receives after this time period. FAS will consider requests for reporting deadline extensions on a case by case basis and make a decision based on the merits of each request. FAS will consider factors such as unforeseen or extenuating circumstances and past performance history when evaluating requests for extensions.

    (h) A recipient must retain records and permit access to records in accordance with the requirements of 2 CFR 200.333 through 200.337. The date of submission of the final expenditure report, as referenced in 2 CFR 200.333, will be the final date of submission of the reports required by paragraph (e) of this section, as prescribed by FAS. The recipient must retain copies of and make available to FAS all sales receipts, contracts, or other documents related to the procurement of eligible commodities, as well as records of dispatch received from ocean carriers or overland transportation companies.

    § 1590.15 Subrecipients.

    (a) A recipient may utilize the services of a subrecipient to implement activities under the agreement if this is provided for in the agreement. The subrecipient may receive procured commodities, FAS-provided funds, program income, or other resources from the recipient for this purpose. The recipient must enter into a written subagreement with the subrecipient and comply with the applicable provisions of 2 CFR 200.331. The recipient must provide a copy of each subagreement to FAS, in the manner set forth in the agreement, prior to the transfer of any procured commodities, FAS-provided funds, or program income to the subrecipient.

    (b) The recipient must include the following requirements in the subagreement:

    (1) The subrecipient is required to comply with the applicable provisions of this part and 2 CFR parts 200 and 400. The applicable provisions are those that relate specifically to subrecipients, as well as those relating to non-Federal entities that impose requirements that would be reasonable to pass through to subrecipients because they directly concern the implementation of one or more activities under the agreement. If there is a question about whether a particular provision is applicable, FAS will make the determination.

    (2) The subrecipient is prohibited from using FAS-provided funds to acquire goods and services, either directly or indirectly through another party, in a manner that violates country-specific economic sanction programs, as specified in the agreement.

    (3) The subrecipient must pay to the recipient the value of any procured commodities, FAS-provided funds, or program income that are not used in accordance with the subagreement, or that are lost, damaged, or misused as a result of the subrecipient's failure to exercise reasonable care.

    (4) In accordance with § 1590.19 and 2 CFR 200.501(h), a description of the applicable compliance requirements and the subrecipient's compliance responsibility. Methods to ensure compliance may include pre-award audits, monitoring during the agreement, and post-award audits.

    (c) The recipient must monitor the actions of a subrecipient as necessary to ensure that procured commodities, FAS-provided funds, and program income provided to the subrecipient are used for authorized purposes in compliance with applicable U.S. Federal laws and regulations and the subagreement and that performance indicator targets are achieved for both activities and results under the agreement.

    § 1590.16 Noncompliance with an agreement.

    If a recipient fails to comply with a Federal statute or regulation or the terms and conditions of the agreement, and FAS determines that the noncompliance cannot be remedied by imposing additional conditions, FAS may take one or more of the actions set forth in 2 CFR 200.338, including initiating a claim as a remedy. FAS may also initiate a claim against a recipient if the procured commodities are damaged or lost, or the FAS-provided funds, interest, or program income are misused or lost, due to an action or omission of the recipient.

    § 1590.17 Suspension and termination of agreements.

    (a) An agreement or subagreement may be suspended or terminated in accordance with 2 CFR 200.338 or 200.339. FAS may suspend or terminate an agreement if it determines that:

    (1) One of the bases in 2 CFR 200.338 or 200.339 for termination or suspension by FAS has been satisfied;

    (2) The continuation of the assistance provided under the agreement is no longer necessary or desirable; or

    (3) Storage facilities are inadequate to prevent spoilage or waste, or distribution of the procured commodities will result in substantial disincentive to, or interference with, domestic production or marketing in the target country.

    (b) If an agreement is terminated, the recipient:

    (1) Is responsible for the security and integrity of any undistributed procured commodities and must dispose of such commodities only as agreed to by FAS; and

    (2) Must comply with the closeout and post-closeout procedures specified in the agreement and 2 CFR 200.343 and 200.344.

    § 1590.18 Opportunities to object and appeals.

    (a) FAS will provide an opportunity to a recipient to object to, and provide information and documentation challenging, any action taken by FAS pursuant to § 1590.16. FAS will comply with any requirements for hearings, appeals, or other administrative proceedings to which the recipient is entitled under any other statute or regulation applicable to the action involved. In the absence of such other requirements, the requirements set forth in this section will apply.

    (b) The recipient must submit its objection in writing, along with any documentation, to the FAS official specified in the agreement within 30 days after the date that FAS notified the recipient that FAS was taking the action being challenged. This official will endeavor to notify the recipient of his or her determination within 60 days after the date that FAS received the recipient's written objection.

    (c) The recipient may appeal the determination of the official to the Administrator, FAS. An appeal must be in writing and be submitted to the Office of the Administrator within 30 days after the date of the initial determination by the FAS official. The recipient may submit additional documentation with its appeal.

    (d) The Administrator will base the determination on appeal upon information contained in the administrative record and will endeavor to make a determination within 60 days after the date that FAS received the appeal. The determination of the Administrator will be the final determination of FAS. The recipient must exhaust all administrative remedies contained in this section before pursuing judicial review of a determination by the Administrator.

    § 1590.19 Audit requirements.

    (a) Subpart F, Audit requirements, of 2 CFR part 200 applies to recipients and subrecipients under this part other than those that are for-profit entities, foreign public entities, or foreign organizations.

    (b) A recipient or subrecipient that is a for-profit entity or a foreign organization, and that expends, during its fiscal year, a total of at least the audit requirement threshold in 2 CFR 200.501 in Federal awards from FAS, is required to obtain an audit. Such a recipient or subrecipient has the following two options to satisfy this requirement:

    (1)(i) A financial related audit (as defined in the Government Auditing Standards, GPO Stock #020-000-00-265-4) of the agreement or subagreement, in accordance with Government Auditing Standards, if the recipient or subrecipient receives Federal awards under only one FAS program; or

    (ii) A financial related audit of all Federal awards from FAS, in accordance with Government Auditing Standards, if the recipient or subrecipient receives Federal awards under multiple FAS programs; or

    (2) An audit that meets the requirements contained in subpart F of 2 CFR part 200.

    (c) A recipient or subrecipient that is a for-profit entity or a foreign organization, and that expends, during its fiscal year, a total that is less than the audit requirement threshold in 2 CFR 200.501 in Federal awards from FAS, is exempt from requirements for a non-Federal audit for that year, except as provided in paragraph (d) of this section, but it must make records available for review by appropriate officials of Federal agencies.

    (d) FAS may require an annual financial audit of an agreement or subagreement when the audit requirement threshold in 2 CFR 200.501 is not met. In that case, FAS must provide funds under the agreement for this purpose, and the recipient or subrecipient, as applicable, must arrange for such audit and submit it to FAS.

    (e) When a recipient or subrecipient that is a for-profit entity or a foreign organization is required to obtain a financial audit under this section, it must provide a copy of the audit to FAS within 60 days after the end of its fiscal year.

    (f) FAS, the USDA Office of Inspector General, or the U.S. Government Accountability Office may conduct or arrange for additional audits of any recipients or subrecipients, including for-profit entities and foreign organizations. Recipients and subrecipients must promptly comply with all requests related to such audits. If FAS conducts or arranges for an additional audit, such as an audit with respect to a particular agreement, FAS will fund the full cost of such an audit, in accordance with 2 CFR 200.503(d).

    Dated: June 24, 2016. Suzanne Palmieri, Acting Administrator, Foreign Agricultural Service.
    [FR Doc. 2016-15537 Filed 6-30-16; 8:45 am] BILLING CODE 3410-10-P
    NUCLEAR REGULATORY COMMISSION 10 CFR Parts 2 and 13 [NRC-2016-0057] RIN 3150-AJ72 Adjustment of Civil Penalties for Inflation AGENCY:

    Nuclear Regulatory Commission.

    ACTION:

    Interim final rule.

    SUMMARY:

    The U.S. Nuclear Regulatory Commission (NRC) is amending its regulations to adjust the maximum Civil Monetary Penalties (CMPs) it can assess under statutes enforced by the agency. These changes are mandated by the Federal Civil Penalties Inflation Adjustment Act of 1990 (FCPIAA), as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Improvements Act). The NRC is amending its regulations to adjust the maximum CMP for a violation of the Atomic Energy Act of 1954, as amended (AEA), or any regulation or order issued under the AEA from $140,000 to $280,469 per violation, per day. Additionally, the NRC is amending provisions concerning program fraud civil penalties by adjusting the maximum CMP under the Program Fraud Civil Remedies Act from $7,000 to $10,781 for each false claim or statement.

    DATES:

    This interim final rule is effective on August 1, 2016.

    ADDRESSES:

    Please refer to Docket ID NRC-2016-0057 when contacting the NRC about the availability of information for this action. You may obtain publicly-available information related to this action by any of the following methods:

    Federal Rulemaking Web site: Go to http://www.regulations.gov and search for Docket ID NRC-2016-0057. Address questions about NRC dockets to Carol Gallagher; telephone: 301-415-3463; email: [email protected]. For technical questions, contact the individual listed in the FOR FURTHER INFORMATION CONTACT section of this document.

    NRC's Agencywide Documents Access and Management System (ADAMS): You may obtain publicly-available documents online in the ADAMS Public Documents collection at http://www.nrc.gov/reading-rm/adams.html. To begin the search, select “ADAMS Public Documents” and then select “Begin Web-based ADAMS Search.” For problems with ADAMS, please contact the NRC's Public Document Room (PDR) reference staff at 1-800-397-4209, 301-415-4737, or by email to [email protected]. The ADAMS accession number for each document referenced (if it is available in ADAMS) is provided the first time that it is mentioned in the SUPPLEMENTARY INFORMATION section.

    NRC's PDR: You may examine and purchase copies of public documents at the NRC's PDR, Room O1-F21, One White Flint North, 11555 Rockville Pike, Rockville, Maryland 20852.

    FOR FURTHER INFORMATION CONTACT:

    Eric Michel, Office of the General Counsel, telephone: 301-287-3704, email: [email protected], U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001.

    SUPPLEMENTARY INFORMATION: Table of Contents I. Background II. Discussion III. Procedural Background IV. Section-by-Section Analysis V. Regulatory Flexibility Certification VI. Regulatory Analysis VII. Backfitting and Issue Finality VIII. Plain Writing IX. National Environmental Policy Act X. Paperwork Reduction Act XI. Congressional Review Act I. Background

    Congress passed the FCPIAA in 1990 to allow for regular adjustment for inflation of CMPs, maintain the deterrent effect of civil monetary penalties and promote compliance with the law, and improve the collection of CMPs by the Federal government (Pub. L. 101-410, 104 Stat. 890; 28 U.S.C. 2461 note). As amended by the Debt Collection Improvement Act of 1996, the FCPIAA required that the head of each agency review, and if necessary adjust by regulation, the CMPs assessed under statutes enforced by that agency at least once every 4 years, in accordance with a statutory formula linked to the percentage change in the Consumer Price Index (CPI) (Pub. L. 104-134, 110 Stat. 1321-373). The NRC has amended the CMP amounts under statutes it enforces (the AEA and Program Fraud Civil Remedies Act) four times, most recently in 2008 (September 23, 2008; 73 FR 54671). An adjustment was not performed in 2012 because the FCPIAA required agencies to round their CMP amounts to the nearest multiple of $1,000 or $10,000, depending on the size of the CMP amount, and the 2012 adjustments based on the statutory formula were small enough that no adjustment resulted.

    On November 2, 2015, the FCPIAA was amended by the 2015 Improvements Act (Sec. 701, Pub. L. 114-74, 129 Stat. 599). The 2015 Improvements Act requires that the head of each agency through an interim final rulemaking make an initial “catch-up” adjustment of the CMPs assessed under statutes enforced by that agency by July 1, 2016, to be effective no later than August 1, 2016. This initial catch-up adjustment is to be calculated according to the percentage change between the CPI for the month of October 2015 and the CPI for the month of October of the calendar year when the CMP amount was last established by some means other than a FCPIAA adjustment. The increase for the initial catch up adjustment may not exceed 150 percent of the CMP amount as of the date of the enactment of the 2015 Improvements Act. Following the initial catch-up adjustment, agencies must continue to adjust their CMPs by January 15 of each year. This calculation is based on the percentage change between the CPI for the preceding month of October and the CPI for the month of October in the preceding year. All increases under the 2015 Improvements Act are to be rounded to the nearest multiple of one dollar.

    II. Discussion

    Section 234 of the AEA limits civil penalties for violations of the AEA to $100,000 per day, per violation (42 U.S.C. 2282). Congress established the $100,000 amount in 1980 (Pub. L. 96-295, 94 Stat. 787). As discussed in Section I, “Background,” of this document, the NRC has adjusted this amount (currently set at $140,000) on four occasions since 1980, each time pursuant to the FCPIAA. For purposes of calculating the initial catch-up adjustment under the 2015 Improvements Act, the relevant baseline year for AEA CMPs is 1980 (the last time the CMP was established by some means other than a FCPIAA adjustment). Using the formula in the 2015 Improvements Act, the $100,000 amount established in 1980 will increase by 280.469 percent, resulting in a new CMP figure of $280,469.1 The 2015 Improvements Act caps the increase in penalty levels for the initial catch-up adjustment at no more than 150 percent of the CMP level in effect as of November 2, 2015, which means the amount of increase for AEA CMPs cannot exceed $210,000 (150 percent of the current $140,000 amount). A new CMP amount of $280,469 is an increase of $140,469, which is within the limit imposed by the 2015 Improvements Act. Therefore, the NRC is amending § 2.205 of title 10 of the Code of Federal Regulations (10 CFR) to reflect a new maximum CMP under the AEA in the amount of $280,469 per day, per violation.

    1 This figure is confirmed by guidance from the Office of Management and Budget (OMB) concerning implementation of the 2015 Improvements Act. See OMB M-16-06, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Feb. 24, 2016), available at https://www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf.

    Monetary penalties under the Program Fraud Civil Remedies Act were established in 1986 at $5,000 per claim (Pub. L. 99-509, 100 Stat. 1938; 31 U.S.C. 3802). The NRC has adjusted this amount (currently set at $7,000) multiple times pursuant to the FCPIAA since 1986. Using 1986 as the baseline year, the $5,000 amount will increase by 215.628 percent, resulting in a new CMP amount of $10,781. This is a $3,781 increase from the current $7,000 CMP amount, which is less than the statutory cap of a $10,500 increase (150 percent of $7,000). Therefore, the NRC is amending 10 CFR 13.3 to reflect a new maximum CMP amount of $10,781 per claim.

    As permitted by the 2015 Improvements Act, the NRC may apply these increased CMP amounts to any penalties assessed by the agency after the effective date of this interim final rule (August 1, 2016), regardless of whether the associated violation occurred before or after this date (Pub. L. 114-74, 129 Stat. 600; 28 U.S.C. 2461 note). Conforming changes to the NRC Enforcement Policy (ADAMS Accession No. ML15029A148) will be published in a forthcoming Federal Register notice before the effective date of this interim final rule (August 1, 2016).

    III. Procedural Background

    This interim final rule has been issued without prior public notice or opportunity for public comments. The Administrative Procedure Act (5 U.S.C. 553(b)(B)) does not require an agency to use the public notice and comment process “when the agency for good cause finds (and incorporates the finding and a brief statement of reasons therefore in the rules issued) that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest.” In this instance, the NRC finds, for good cause, that solicitation of public comment on this interim final rule is unnecessary. Through the FCPIAA and 2015 Improvements Act, Congress has provided a non-discretionary statutory formula by which the NRC must adjust its CMPs for inflation. Requesting public comment on these CMP adjustments, which are required by statute, would not result in a different amount.

    IV. Section-by-Section Analysis

    Paragraph (j) in § 2.205 is revised by replacing “$140,000” with “$280,469”.

    Paragraphs (a)(1)(iv) and (b)(1)(ii) in § 13.3 are revised by replacing “$7,000” with “$10,781”.

    V. Regulatory Flexibility Certification

    Under the Regulatory Flexibility Act (5 U.S.C. 605(b)), the NRC certifies that this interim final rule will not have a significant economic impact on a substantial number of small entities.

    VI. Regulatory Analysis

    This interim final rule adjusts for inflation the maximum CMPs the NRC may assess under the AEA and under the Program Fraud Civil Remedies Act of 1986. The formula for determining the amount of the adjustment is mandated by Congress in the FCPIAA, as amended by the 2015 Improvements Act (28 U.S.C. 2461 note). Congress passed this legislation on the basis of its findings that the power to impose monetary civil penalties is important to deterring violations of Federal law and furthering the policy goals of Federal laws and regulations. Congress has also found that inflation has diminished the impact of these penalties and their effect. The principal purposes of this legislation are to provide for adjustment of civil monetary penalties for inflation, maintain the deterrent effect of civil monetary penalties, and promote compliance with the law. Therefore, these are the anticipated impacts of this rulemaking. Direct monetary impacts fall only upon licensees or other persons subjected to NRC enforcement for violations of the AEA and regulations and orders issued under the AEA (10 CFR 2.205), or those licensees or persons subjected to liability pursuant to the provisions of the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801-3812) and the NRC's implementing regulations (10 CFR part 13).

    VII. Backfit and Issue Finality

    The NRC has not prepared a backfit analysis for this rulemaking. This interim final rule does not involve any provision that would impose a backfit, nor is it inconsistent with any issue finality provision, as those terms are defined in 10 CFR chapter I. As mandated by Congress, this interim final rule increases CMP amounts for violations of already-existing NRC regulations and requirements. This interim final rule does not modify any licensee system, structures, components, designs, approvals, or procedures required for the design, construction, or operation of any facility.

    VIII. Plain Writing

    The Plain Writing Act of 2010 (Pub. L. 111-274) requires Federal agencies to write documents in a clear, concise, and well-organized manner. The NRC has written this document to be consistent with the Plain Writing Act as well as the Presidential Memorandum, “Plain Language in Government Writing,” published June 10, 1998 (63 FR 31883).

    IX. National Environmental Policy Act

    The NRC has determined that this interim final rule is the type of action described as a categorical exclusion in 10 CFR 51.22(c)(1) and (2). Therefore, neither an environmental impact statement nor an environmental assessment has been prepared for this interim final rule.

    X. Paperwork Reduction Statement

    This interim final rule does not contain a collection of information as defined in the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) and, therefore, is not subject to the requirements of the Paperwork Reduction Act of 1995.

    XI. Congressional Review Act

    This interim final rule is a rule as defined in the Congressional Review Act (5 U.S.C. 801-808). However, the Office of Management and Budget has not found it to be a major rule as defined in the Congressional Review Act.

    List of Subjects 10 CFR Part 2

    Administrative practice and procedure, Antitrust, Byproduct material, Classified information, Confidential business information; Freedom of information, Environmental protection, Hazardous waste, Nuclear energy, Nuclear materials, Nuclear power plants and reactors, Penalties, Reporting and recordkeeping requirements, Sex discrimination, Source material, Special nuclear material, Waste treatment and disposal.

    10 CFR Part 13

    Administrative practice and procedure, Claims, Fraud, Organization and function (Government agencies), Penalties.

    For the reasons set out in the preamble and under the authority of the Atomic Energy Act of 1954, as amended; the Energy Reorganization Act of 1974, as amended; 28 U.S.C. 2461 note; and 5 U.S.C. 552 and 553, the NRC is adopting the following amendments to 10 CFR parts 2 and 13.

    PART 2—AGENCY RULES OF PRACTICE AND PROCEDURE 1. The authority citation for part 2 is revised to read as follows: Authority:

    Atomic Energy Act of 1954, secs. 29, 53, 62, 63, 81, 102, 103, 104, 105, 161, 181, 182, 183, 184, 186, 189, 191, 234 (42 U.S.C. 2039, 2073, 2092, 2093, 2111, 2132, 2133, 2134, 2135, 2201, 2231, 2232, 2233, 2234, 2236, 2239, 2241, 2282); Energy Reorganization Act of 1974, secs. 201, 206 (42 U.S.C. 5841, 5846); Nuclear Waste Policy Act of 1982, secs. 114(f), 134, 135, 141 (42 U.S.C. 10134(f), 10154, 10155, 10161); Administrative Procedure Act (5 U.S.C. 552, 553, 554, 557, 558); National Environmental Policy Act of 1969 (42 U.S.C. 4332); 44 U.S.C. 3504 note.

    Section 2.205(j) also issued under 28 U.S.C. 2461 note.

    2. Amend § 2.205 by revising paragraph (j) to read as follows:
    § 2.205 Civil penalties.

    (j) Amount. A civil monetary penalty imposed under Section 234 of the Atomic Energy Act of 1954, as amended, or any other statute within the jurisdiction of the Commission that provides for the imposition of a civil penalty in an amount equal to the amount set forth in Section 234, may not exceed $280,469 for each violation. If any violation is a continuing one, each day of such violation shall constitute a separate violation for the purposes of computing the applicable civil penalty.

    PART 13—PROGRAM FRAUD CIVIL REMEDIES 3. The authority citation for part 13 is revised to read as follows: Authority:

    31 U.S.C. 3801 through 3812; 44 U.S.C. 3504 note.

    Section 13.3 also issued under 28 U.S.C. 2461 note.

    Section 13.13 also issued under 31 U.S.C. 3730.

    4. Amend § 13.3 by revising paragraphs (a)(1)(iv) and (b)(1)(ii) to read as follows:
    § 13.3 Basis for civil penalties and assessments.

    (a) * * *

    (1) * * *

    (iv) Is for payment for the provision of property or services which the person has not provided as claimed, shall be subject, in addition to any other remedy that may be prescribed by law, to a civil penalty of not more than $10,781 for each such claim.

    (b) * * *

    (1) * * *

    (ii) Contains or is accompanied by an express certification or affirmation of the truthfulness and accuracy of the contents of the statement, shall be subject, in addition to any other remedy that may be prescribed by law, to a civil penalty of not more than $10,781 for each such statement.

    Dated in Rockville, Maryland, this 20 day of June, 2016.

    For the Nuclear Regulatory Commission.

    Victor M. McCree, Executive Director for Operations.
    [FR Doc. 2016-15399 Filed 6-30-16; 8:45 am] BILLING CODE 7590-01-P
    DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Parts 19 and 109 [Docket ID OCC-2016-0008] RIN 1557-AE04 Rules of Practice and Procedure; Rules of Practice and Procedure in Adjudicatory Proceedings; Civil Money Penalty Inflation Adjustments AGENCY:

    Office of the Comptroller of the Currency, Treasury.

    ACTION:

    Interim final rule and request for comment.

    SUMMARY:

    The Office of the Comptroller of the Currency (OCC) is amending its rules of practice and procedure for national banks and its rules of practice and procedure in adjudicatory proceedings for Federal savings associations to publish the maximum amount, adjusted for inflation, of each civil money penalty within its jurisdiction to administer. These actions are required under the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.

    DATES:

    This rule is effective on August 1, 2016. Comments must be submitted by August 30, 2016.

    ADDRESSES:

    Because paper mail in the Washington, DC area and at the OCC is subject to delay, commenters are encouraged to submit comments through the Federal eRulemaking Portal or email, if possible. Please use the title “Rules of Practice and Procedure; Rules of Practice and Procedure in Adjudicatory Proceedings; Civil Money Penalty Inflation Adjustments” to facilitate the organization and distribution of the comments. You may submit comments by any of the following methods:

    Federal eRulemaking Portal—“Regulations.gov”: Go to www.regulations.gov. Enter “Docket ID OCC-2016-0008” in the Search Box and click “Search.” Click on “Comment Now” to submit public comments.

    • Click on the “Help” tab on the Regulations.gov home page to get information on using Regulations.gov, including instructions for submitting public comments.

    Email: [email protected]

    Mail: Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, 400 7th Street SW., Suite 3E-218, Mail Stop 9W-11, Washington, DC 20219.

    Hand Delivery/Courier: 400 7th Street SW., Suite 3E-218, Mail Stop 9W-11, Washington, DC 20219.

    Fax: (571) 465-4326.

    Instructions: You must include “OCC” as the agency name and “Docket ID OCC-2016-0008” in your comment. In general, OCC will enter all comments received into the docket and publish them on the Regulations.gov Web site without change, including any business or personal information that you provide such as name and address information, email addresses, or phone numbers. Comments received, including attachments and other supporting materials, are part of the public record and subject to public disclosure. Do not include any information in your comment or supporting materials that you consider confidential or inappropriate for public disclosure.

    You may review comments and other related materials that pertain to this rulemaking action by any of the following methods:

    Viewing Comments Electronically: Go to www.regulations.gov. Enter “Docket ID OCC-2016-0008” in the Search box and click “Search.” Click on “Open Docket Folder” on the right side of the screen and then “Comments.” Comments can be filtered by clicking on “View All” and then using the filtering tools on the left side of the screen.

    • Click on the “Help” tab on the Regulations.gov home page to get information on using Regulations.gov. Supporting materials may be viewed by clicking on “Open Docket Folder” and then clicking on “Supporting Documents.” The docket may be viewed after the close of the comment period in the same manner as during the comment period.

    Viewing Comments Personally: You may personally inspect and photocopy comments at the OCC, 400 7th Street SW., Washington, DC 20219. For security reasons, the OCC requires that visitors make an appointment to inspect comments. You may do so by calling (202) 649-6700 or, for persons who are deaf or hard of hearing, TTY, (202) 649-5597. Upon arrival, visitors will be required to present valid government-issued photo identification and submit to security screening in order to inspect and photocopy comments.

    FOR FURTHER INFORMATION CONTACT:

    Jean Campbell, Counsel, Legislative and Regulatory Activities Division, (202) 649-5490, or, for persons who are deaf or hard of hearing, TTY, (202) 649-5597, or Alexander Abramovich, Attorney, Enforcement and Compliance Division, (202) 649-6200, Office of the Comptroller of the Currency, 400 7th Street SW., Washington, DC 20219.

    SUPPLEMENTARY INFORMATION: I. Background

    On November 2, 2015, Congress enacted the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 Act),1 which amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (the Inflation Adjustment Act).2 The Inflation Adjustment Act required the OCC and other Federal agencies with civil money penalty (CMP) authority to publish by regulation the inflation-adjusted maximum assessment for each CMP authorized by a law that the agency has jurisdiction to administer.3 Key features of the Inflation Adjustment Act included requiring such agencies to make inflation adjustments at least once every four years following any initial adjustment, capping the initial inflation adjustment increase at 10 percent, and imposing rounding rules that limited increases based on the amount of the penalty.

    1 Public Law 114-74, Title VII, section 701(b), Nov. 2, 2015, 129 Stat. 599, codified at 28 U.S.C. 2461 note.

    2See Public Law 101-410, Oct. 5, 1990, 104 Stat. 890, codified at 28 U.S.C. 2461 note.

    3 The 2015 Act defines a “civil monetary penalty” to mean “any 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.”

    28 U.S.C. 2461 note, section 3(2). Thus, a penalty based on another measure, such as a percentage of total assets, need not be adjusted.

    The purpose of the 2015 Act is to: (i) Establish a mechanism to regularly adjust CMPs for inflation; (ii) maintain the deterrent effect of CMPs and promote compliance with the law; and (iii) improve the collection of CMPs by the Federal government.4 Key provisions of the 2015 Act include simplifying the process for calculating the inflation increase, eliminating the complex rounding rules, and requiring Federal agencies to adjust penalties on an annual basis.

    4See 28 U.S.C. 2461 note, section 2(b).

    The 2015 Act requires agencies to increase the level of each maximum CMP, or the range of minimum and maximum CMPs, with an initial “catch-up” adjustment through an interim final rule published in the Federal Register no later than July 1, 2016, with an effective date no later than August 1, 2016.5 Under the 2015 Act, agencies must calculate initial catch-up adjustments based on the percentage increase in the October 2015 Consumer Price Index for all Urban Consumers (CPI-U) 6 from the October CPI-U of the year the CMP was established or last adjusted by law. However, for the catch-up adjustment, the amount of the initial increase may not exceed 150 percent of the CMP in effect on the date the 2015 Act was enacted (i.e., November 2, 2015).

    5 The 2015 Act, however, provides a mechanism for an agency, with the concurrence of the Office of Management and Budget (OMB), to reduce a catch-up adjustment if the agency demonstrates the required increase of the penalty or penalty range would have a negative economic impact or that social costs would outweigh the benefits.

    6 This index is published by the Department of Labor.

    The 2015 Act requires agencies to publish subsequent annual adjustments in the Federal Register no later than January 15 of each year, beginning on January 15, 2017. The 2015 Act also requires agencies to calculate subsequent annual inflation adjustments based on the percentage increase in the CPI-U for the month of October preceding the date of the adjustment from the prior year's October CPI-U and to round all adjustments to the nearest dollar.

    The 2015 Act also requires OMB to issue guidance to Federal agencies on implementing the required inflation adjustments. The OMB guidance (OMB Guidance), issued February 24, 2016, provides the multiplier (i.e., the inflation adjustment factor agencies must use to adjust their penalties), step-by-step instructions on how to calculate the catch-up adjustments, and other relevant information.7

    7 Office of Management and Budget Memorandum, M-16-06 (February 24, 2016), available at: https://www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf.

    The OCC last evaluated and adjusted the maximum amount of CMPs applicable to national banks and Federal savings associations in 2012. An interim final rule was published in the Federal Register on November 6, 2012,8 and became effective on December 6, 2012. The OCC published a technical amendment to this rule in the Federal Register on December 28, 2012,9 that became effective on December 28, 2012.

    8 77 FR 66529.

    9 77 FR 76354.

    II. Description of the Interim Final Rule A. Initial Inflation Adjustment

    This interim final rule adjusts for inflation the maximum assessment for each CMP that the OCC has jurisdiction to impose in accordance with the 2015 Act and the OMB Guidance. The OCC is incorporating these adjustments into the charts that are set forth at 12 CFR 19.240(a) with respect to national banks (national bank chart) and 12 CFR 109.103(c) with respect to Federal savings associations (Federal savings association chart). Each chart identifies the statutes that authorize the OCC to assess CMPs, describes the different tiers of penalties provided in each statute (as applicable), and sets out the inflation-adjusted maximum penalty that the OCC may impose pursuant to each statutory provision. The OCC calculated the amounts in the charts in accordance with the OMB Guidance, as follows.

    In order to calculate the catch-up adjustment, the OMB Guidance instructs agencies to identify, for each penalty, the year and corresponding amount(s) for which the maximum penalty level or range of minimum and maximum penalties was established (i.e., as originally enacted by Congress), or last adjusted (i.e., by Congress in statute, or by the agency through regulation), whichever is later, other than pursuant to the Inflation Adjustment Act. Thus, this step of the calculation excludes prior inflation adjustments under the Inflation Adjustment Act.10

    10See OMB Guidance, at 3.

    The OMB Guidance then directs agencies to modify that penalty level or range based on the CPI-U for the month of October 2015, not seasonally adjusted. OMB calculated the multiplier that agencies must apply in order to adjust the penalty level or range of penalty levels, based on the year the penalty was established or last adjusted by statute or regulation, and provided these multipliers for the years 1914 through 2015.11 Agencies must apply the multiplier and round all penalty levels to the nearest dollar. However, because the 2015 Act caps the amount of the initial catch-up adjustment at 150 percent, the OMB Guidance states that each adjusted penalty cannot exceed 250 percent of the penalty level in effect on November 2, 2015.12 The 2015 Act states that agencies are required to apply the new penalty levels to CMPs that are assessed after the effective date of the rule. The OMB Guidance clarifies that inflation adjustments calculated and assessed pursuant to the 2015 Act adjust penalties prospectively and do not retrospectively change penalties previously assessed or enforced that the agency is actively collecting or has collected.13

    11 For penalties established or last adjusted prior to 1914, the OMB Guidance states that agencies should use the multiplier for 1914. See id., Table A, at 6.

    12See 28 U.S.C. 2461 note, section 5(b)(2)(C); see also OMB Guidance, at 3.

    13See OMB Guidance, at 4.

    The worksheets below show how the OCC calculated the new penalty levels for national banks and Federal savings associations. Only two penalties, those provided in 12 U.S.C. 1832(c) and 1884, were capped at 250 percent of the amount of the penalty on November 2, 2015.

    The OCC did not exercise the discretion it is provided under the 2015 Act to seek a reduced catch-up adjustment determination from OMB. Such a request would have required the OCC to demonstrate that the penalty would have a negative economic impact, or that the social costs of the adjustment would outweigh the benefits.14 As the penalties reflected in the national bank chart and Federal savings association chart are, for the most part, maximum penalties, the OCC may impose lesser penalties, if warranted. Accordingly, the OCC concluded that a reduced catch-up adjustment determination was not necessary.

    14See 28 U.S.C. 2461 note, section 4(c) and OMB Guidance, at 3.

    B. Penalties Added to the National Bank Chart and Federal Savings Association Chart

    This interim final rule adjusts the following additional penalties that are being incorporated into the national bank chart and Federal savings association chart. First, both charts include a new CMP, provided in 15 U.S.C. 1639e(k), created by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).15 The new CMP makes it unlawful for a creditor who extends credit, or provides any services for a consumer credit transaction secured by the consumer's principal dwelling, to engage in any act or practice that violates the regulation implementing the appraisal independence requirements in section 1472 of the Dodd-Frank Act. Pursuant to the Dodd-Frank Act, the maximum daily penalty for the first violation is $10,000 and the maximum daily penalty for subsequent violations is $20,000. The adjusted maximum daily penalties will be $10,875 and $21,749, respectively.

    15See Dodd-Frank Act, Public Law 111-203, Title XIV, section 1472, July 21, 2010, 124 Stat. 2187, codified at 15 U.S.C. 1639e(k).

    The OCC also is adjusting the penalty provided in 12 U.S.C. 481, an existing CMP that previously was not included in the chart. Twelve U.S.C. 481 authorizes the OCC to assess on a national bank a maximum daily penalty of no more than $5,000 if any affiliate of a national bank refuses to permit an examiner to make an examination of such affiliate or refuses to provide any information required in the course of such an examination. The adjusted maximum daily penalty will be $9,468.

    In addition, the OCC is adjusting the penalties provided in 12 U.S.C. 1832(c), 12 U.S.C. 1972(2)(F), and 15 U.S.C. 78u-2(b), three CMPs that are in the national bank chart, but were not previously included in the chart applicable to Federal savings associations. Twelve U.S.C. 1832(c) makes it unlawful for a depository institution to violate the restrictions on withdrawals by negotiable or transferable instruments for transfers to third parties. The penalty when first established was $1,000 per violation. The adjusted penalty will be $2,750 per violation. Twelve U.S.C 1972(2)(F) makes it unlawful for a savings association to violate anti-tying restrictions regarding correspondent accounts, unsafe or unsound practices, or breach of fiduciary duty. When first established, the maximum daily penalty was: $5,000 for a tier 1 violation; $25,000 for a tier 2 violation; $1,000,000 for a tier 3 violation by a person other than a bank; and the lesser of $1,000,000 or 1 percent of total assets for a tier 3 violation by a bank. The adjusted maximum daily penalties will be: $9,468 for a tier 1 violation; $47,340 for a tier 2 violation; $1,893,610 for a tier 3 violation by a person other than a bank; and the lesser of $1,893,610 or 1 percent of total assets for a tier 3 violation by a bank. Fifteen U.S.C. 78u-2(b) provides penalties for violations of various provisions of the Securities Act,16 the Securities Exchange Act,17 the Investment Company Act,18 and the Investment Advisers Act,19 as applicable. When first established, the maximum penalty per violation was: $5,000 for a tier 1 violation by a natural person; $50,000 for a tier 1 violation by any other person; $50,000 for a tier 2 violation by a natural person; $250,000 for a tier 2 violation by any other person; $100,000 for a tier 3 violation by a natural person; and $500,000 for a tier 3 violation by any other person. The adjusted maximum penalties will be: $8,907 for tier 1 (natural person); $89,078 for tier 1 (other person); $89,078 for tier 2 (natural person); $445,390 for tier 2 (other person); $178,156 for tier 3 (natural person); and $890,780 for tier 3 (other person).

    16 Securities Act of 1933, Title I of Public Law 73-22, enacted May 27, 1933, 48 Stat. 74, codified at 15 U.S.C. 77a, et seq.

    17 Securities Exchange Act of 1934, Public Law 73-291, enacted June 6, 1934, 48 Stat. 881, codified at 15 U.S.C. 78a, et seq.

    18 Investment Company Act of 1940, Public Law 76-768, enacted Aug. 22, 1940, 54 Stat. 789, codified at 15 U.S.C. 80a-1, et seq.

    19 Investment Advisers Act of 1940, Public Law 76-768, enacted Aug. 22, 1940, 54 Stat. 847, codified at 15 U.S.C. 80b-1, et seq.

    C. Other Technical Changes to the National Bank Chart and Federal Savings Association Chart

    The OCC is making several minor technical edits to the national bank chart and Federal savings association chart. The OCC is amending the charts by adding a footnote to each chart, where appropriate, to clarify that for certain penalties the applicable statute provides that the penalty will be the lesser of a dollar adjusted penalty amount or 1 percent of the bank's total assets. The text of the new Federal savings association chart no longer includes reference to 12 U.S.C. 3349(b). This penalty is an example of penalties that do not themselves provide the amount of the penalty but rather cross-reference 12 U.S.C. 1818. Instead, the OCC is adding a footnote to the national bank chart (footnote 3) and the Federal savings association chart (footnote 3), where appropriate, explaining that statutes cross-referencing 12 U.S.C. 1818 are adjusted automatically when the penalty in section 1818 is adjusted for inflation.

    The interim final rule also deletes §§ 19.240(c) and 109.103(d), which provided an effective date of July 6, 2012, for the amount of the penalties for violations of 42 U.S.C. 4012a(f)(5), as all the penalty amounts on the revised national bank chart and Federal savings association chart are now effective on the same date.

    Finally, consistent with the 2015 Act, revised §§ 19.240(b) and 109.103(c) state that the penalties in the charts at §§ 19.240(a) and 109.103(c) apply only to penalties assessed on or after the effective date of this interim final rule, August 1, 2016.

    2015 Worksheet—National Banks U.S. Code citation Tier
  • (if applicable)
  • Maximum
  • penalty on
  • Nov. 2, 2015
  • (in dollars)
  • Year
  • established
  • or last
  • adjusted
  • Amount when established or last adjusted Inflation factor Amount of
  • increase
  • (rounded to nearest dollar)
  • Adjusted
  • maximum
  • penalty
  • (after rounding and
  • comparison
  • calculation)
  • (in dollars)
  • 12 U.S.C. 93(b) Tier 1
  • Tier 2
  • Tier 3
  • 7,500
  • 37,500
  • 1,425,000
  • 1989
  • 1989
  • 1989
  • 5,000
  • 25,000
  • 1,000,000
  • 1.89361
  • 1.89361
  • 1.89361
  • 9,468
  • 47,340
  • 1,893,610
  • 9,468
  • 47,340
  • 1,893,610
  • 12 U.S.C. 164 Tier 1
  • Tier 2
  • Tier 3
  • 3,200
  • 32,000
  • 1,425,000
  • 1989
  • 1989
  • 1989
  • 2,000
  • 20,000
  • 1,000,000
  • 1.89361
  • 1.89361
  • 1.89361
  • 3,787
  • 37,872
  • 1,893,610
  • 3,787
  • 37,872
  • 1,893,610
  • 12 U.S.C. 481 Per day 5,000 1989 5,000 1.89361 9,468 9,468 12 U.S.C. 504 Tier 1
  • Tier 2
  • Tier 3
  • 7,500
  • 37,500
  • 1,425,000
  • 1989
  • 1989
  • 1989
  • 5,000
  • 25,000
  • 1,000,000
  • 1.89361
  • 1.89361
  • 1.89361
  • 9,468
  • 47,340
  • 1,893,610
  • 9,468
  • 47,340
  • 1,893,610
  • 12 U.S.C. 1817(j)(16) Tier 1
  • Tier 2
  • Tier 3
  • 7,500
  • 37,500
  • 1,425,000
  • 1989
  • 1989
  • 1989
  • 5,000
  • 25,000
  • 1,000,000
  • 1.89361
  • 1.89361
  • 1.89361
  • 9,468
  • 47,340
  • 1,893,610
  • 9,468
  • 47,340
  • 1,893,610
  • 12 U.S.C. 1818(i)(2) Tier 1
  • Tier 2
  • Tier 3
  • 7,500
  • 37,500
  • 1, 425,000
  • 1989
  • 1989
  • 1989
  • 5,000
  • 25,000
  • 1,000,000
  • 1.89361
  • 1.89361
  • 1.89361
  • 9,468
  • 47,340
  • 1,893,610
  • 9,468
  • 47,340
  • 1,893,610
  • 12 U.S.C. 1820(k)(6)(A)(ii) 275,000 2004 250,000 1.24588 311,470 311,470 12 U.S.C. 1832(c) 1,100 1973 1,000 5.21575 5,216 20 2,750 12 U.S.C. 1884 110 1968 100 6.73762 674 20 275 12 U.S.C. 1972(2)(F) Tier 1
  • Tier 2
  • Tier 3
  • 7,500
  • 37,500
  • 1,425,000
  • 1989
  • 1989
  • 1989
  • 5,000
  • 25,000
  • 1,000,000
  • 1.89361
  • 1.89361
  • 1.89361
  • 9,468
  • 47,340
  • 1,893,610
  • 9,468
  • 47,340
  • 1,893,610
  • 12 U.S.C. 3110(a) 37,500 1991 25,000 1.73099 43,275 43,275 12 U.S.C. 3110(c) Tier 1
  • Tier 2
  • Tier 3
  • 3,200
  • 32,000
  • 1,425,000
  • 1991
  • 1991
  • 1991
  • 2,000
  • 20,000
  • 1,000,000
  • 1.73099
  • 1.73099
  • 1.73099
  • 3,462
  • 34,620
  • 1,730,990
  • 3,462
  • 34,620
  • 1,730,990
  • 12 U.S.C. 3909(d)(1) 1,100 1983 1,000 2.35483 2,355 2,355 15 U.S.C. 78u-2(b) Tier 1 (natural person) 7,500 1990 5,000 1.78156 8,908 8,908 Tier 1 (other person) 70,000 1990 50,000 1.78156 89,078 89,078 Tier 2 (natural person) 70,000 1990 50,000 1.78156 89,078 89,078 Tier 2 (other person) 350,000 1990 250,000 1.78156 445,390 445,390 Tier 3 (natural person) 140,000 1990 100,000 1.78156 178,156 178,156 Tier 3 (other person) 700,000 1990 500,000 1.78156 890,780 890,780 15 U.S.C. 1639e(k) First violation 10,000 2010 10,000 1.08745 10,875 10,875 Subsequent violation 20,000 2010 20,000 1.08745 21,749 21,749 42 U.S.C. 4012a(f)(5) Per violation 2,000 2012 2,000 1.02819 2,056 2,056

    20 Because the 2015 Act caps the amount of the initial inflation adjustment (catch-up adjustment) at 150 percent, the catch-up adjustment cannot exceed 250 percent of the penalty level(s) in effect on the date the 2015 Act was enacted (i.e., November 2, 2015).

    2015 Worksheet—Federal Savings Associations U.S. Code citation Tier
  • (if applicable)
  • Maximum
  • penalty
  • on Nov. 2, 2015
  • (in dollars)
  • Year
  • established
  • or last
  • adjusted
  • Amount when
  • established or
  • last adjusted
  • Inflation
  • factor
  • Amount of
  • increase
  • (rounded to nearest dollar)
  • Adjusted
  • maximum
  • penalty
  • (after rounding and
  • comparison
  • calculation)
  • (in dollars)
  • 12 U.S.C. 1464(v) Tier 1
  • Tier 2
  • Tier 3
  • 3,200
  • 32,500
  • 1,425,500
  • 1989
  • 1989
  • 1989
  • 2,000
  • 20,000
  • 1,000,000
  • 1.89361
  • 1.89361
  • 1.89361
  • 3,787
  • 37,872
  • 1,893,610
  • 3,787
  • 37,872
  • 1,893,610
  • 12 U.S.C. 1467(d) 7,500 1989 5,000 1.89361 9,468 9,468 12 U.S.C. 1467a(r) Tier 1
  • Tier 2
  • Tier 3
  • 3,200
  • 32,500
  • 1,425,000
  • 1989
  • 1989
  • 1989
  • 2,000
  • 20,000
  • 1,000,000
  • 1.89361
  • 1.89361
  • 1.89361
  • 3,787
  • 37,872
  • 1,893,610
  • 3,787
  • 37,872
  • 1,893,610
  • 12 U.S.C. 1817(j)(16) Tier 1
  • Tier 2
  • Tier 3
  • 7,500
  • 37,500
  • 1,425,000
  • 1989
  • 1989
  • 1989
  • 5,000
  • 25,000
  • 1,000,000
  • 1.89361
  • 1.89361
  • 1.89361
  • 9,468
  • 47,340
  • 1,893,610
  • 9,468
  • 47,340
  • 1,893,610
  • 12 U.S.C. 1818(i)(2) Tier 1
  • Tier 2
  • Tier 3
  • 7,500
  • 37,500
  • 1,375,000
  • 1989
  • 1989
  • 1989
  • 5,000
  • 25,000
  • 1,000,000
  • 1.89361
  • 1.89361
  • 1.89361
  • 9,468
  • 47,340
  • 1,893,610
  • 9,468
  • 47,340
  • 1,893,610
  • 12 U.S.C. 1820(k)(6)(A)(ii) 275,000 2004 250,000 1.24588 311,470 311,470 12 U.S.C. 1832(c) 1,000 1973 1,000 5.21575 5,216 21 2,500 12 U.S.C. 1884 110 1968 100 6.73762 674 21 275 12 U.S.C. 1972(2)(F) Tier 1
  • Tier 2
  • Tier 3
  • 5,000
  • 25,000
  • 1,000,000
  • 1989
  • 1989
  • 1989
  • 5,000
  • 25,000
  • 1,000,000
  • 1.89361
  • 1.89361
  • 1.89361
  • 9,468
  • 47,340
  • 1,893,610
  • 9,468
  • 47,340
  • 1,893,610
  • 15 U.S.C. 78u-2(b) Tier 1 (natural person) 5,000 1990 5,000 1.78156 8,908 8,908 Tier 1 (other person) 50,000 1990 50,000 1.78156 89,078 89,078 Tier 2 (natural person) 50,000 1990 50,000 1.78156 89,078 89,078 Tier 2 (other person) 250,000 1990 250,000 1.78156 445,390 445,390 Tier 3 (natural person) 100,000 1990 100,000 1.78156 178,156 178,156 Tier 3 (other person) 500,000 1990 500,000 1.78156 890,780 890,780 15 U.S.C. 1639e(k) First violation 10,000 2010 10,000 1.08745 10,875 10,875 Subsequent violations 20,000 2010 20,000 1.08745 21,749 21,749 42 U.S.C. 4012a(f)(5) Per violation 2,000 2012 2,000 1.02819 2,056 2,056
    III. Request for Comments

    21 Because the 2015 Act caps the amount of the initial inflation adjustment (catch-up adjustment) at 150 percent, the catch-up adjustment cannot exceed 250 percent of the penalty level(s) in effect on the date the 2015 Act was enacted (i.e., November 2, 2015).

    The 2015 Act requires the OCC to adjust the CMPs that it has jurisdiction to administer through an interim final rule. The 2015 Act also dictates the method by which the amount of the initial catch-up adjustment for each CMP must be calculated. As noted in the OMB Guidance, agencies are not required to complete a notice-and-comment process prior to publication of this interim final rule in the Federal Register.22 However, the OCC invites comments on all aspects of this interim final rule. Commenters are specifically encouraged to identify any technical issues raised by the rule, including identifying any CMPs that may have been unintentionally omitted from this rulemaking.

    22See OMB Guidance, at 3.

    IV. Regulatory Analysis A. Delayed Effective Date

    Section 302 of the Riegle Community Development and Regulatory Improvement Act of 1994 23 (RCDRIA) requires that the effective date of new regulations and amendments to regulations that impose additional reporting, disclosures, or other new requirements on insured depository institutions shall be the first day of a calendar quarter that begins on or after the date the regulations are published in final form. 12 U.S.C. 4802(b)(1). The RCDRIA does not apply to this interim final rule because the rule merely increases the amount of CMPs that already exist and does not impose any additional reporting, disclosures, or other new requirements.

    23 12 U.S.C. 4802.

    The Administrative Procedure Act generally requires an agency to publish a rule 30 days prior to its effective date.24 This interim final rule satisfies that requirement. It also satisfies the requirement in the 2015 Act to publish the initial interim final rule no later than July 1, 2016, with an effective date no later than August 1, 2016.

    24 5 U.S.C. 553(d).

    B. Regulatory Flexibility Act

    The Regulatory Flexibility Act applies only to rules for which an agency publishes a general notice of proposed rulemaking pursuant to 5 U.S.C. 553(b).25 Because the 2015 Act requires agencies' catch-up adjustments to be made through an interim final rule, the OCC is not publishing a general notice of proposed rulemaking. Thus, the Regulatory Flexibility Act does not apply to this interim final rule.

    25 5 U.S.C. 601(2).

    C. Unfunded Mandates Reform Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995 26 requires that an agency prepare a budgetary impact statement before promulgating any rule likely to result in 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, as adjusted for inflation, in any one year. The Unfunded Mandates Reform Act only applies when an agency issues a general notice of proposed rulemaking. Because the OCC is not publishing a notice of proposed rulemaking, this interim final rule is not subject to section 202 of the Unfunded Mandates Reform Act.

    26 2 U.S.C. 1532.

    List of Subjects 12 CFR Part 19

    Administrative practice and procedure, Crime, Equal access to justice, Investigations, National banks, Penalties, Securities.

    12 CFR Part 109

    Administrative practice and procedure, Federal savings associations, Penalties.

    Authority and Issuance

    For the reasons set out in the preamble, parts 19 and 109 of chapter I of title 12 of the Code of Federal Regulations are amended as follows:

    PART 19—RULES OF PRACTICE AND PROCEDURE 1. The authority citation for part 19 is revised to read as follows: Authority:

    5 U.S.C. 504, 554-557; 12 U.S.C. 93(b), 93a, 164, 481, 504, 1817, 1818, 1820, 1831m, 1831o, 1832, 1884, 1972, 3102, 3108(a), 3110, 3909, and 4717; 15 U.S.C. 78(h) and (i), 78o-4(c), 78o-5, 78q-1, 78s, 78u, 78u-2, 78u-3, 78w, and 1639e; 28 U.S.C. 2461 note; 31 U.S.C. 330 and 5321; and 42 U.S.C. 4012a.

    2. Section 19.240 is revised to read as follows:
    § 19.240 Inflation adjustments.

    (a) The maximum amount of each civil money penalty within the OCC's jurisdiction is set forth as follows:

    U.S. Code citation Description and tier
  • (if applicable)
  • Maximum
  • penalty
  • amount
  • (in dollars) 1
  • 12 U.S.C. 93(b) Violation of Various Provisions of the National Bank Act: Tier 1 9,468 Tier 2 47,340 Tier 3 2 1,893,610 12 U.S.C. 164 Violation of Reporting Requirements: Tier 1 3,787 Tier 2 37,872 Tier 3 2 1,893,610 12 U.S.C. 481 Refusal of Affiliate to Cooperate in Examination (national bank) 9,468 12 U.S.C. 504 Violation of Various Provisions of the Federal Reserve Act: Tier 1 9,468 Tier 2 47,340 Tier 3 2 1,893,610 12 U.S.C. 1817(j)(16) Violation of Change in Bank Control Act: Tier 1 9,468 Tier 2 47,340 Tier 3 2 1,893,610 12 U.S.C. 1818(i)(2) 3 Violation of Law, Unsafe or Unsound Practice, or Breach of Fiduciary Duty: Tier 1 9,468 Tier 2 47,340 Tier 3 2 1,893,610 12 U.S.C. 1820(k)(6)(A)(ii) Violation of Post-Employment Restrictions: Per violation 311,470 12 U.S.C. 1832(c) Violation of Withdrawals by Negotiable or Transferable Instrument for Transfers to Third Parties: Per violation 2,750 12 U.S.C. 1884 Violation of the Bank Protection Act 275 12 U.S.C. 1972(2)(F) Violation of Anti-Tying Provisions regarding Correspondent Accounts, Unsafe or Unsound Practices, or Breach of Fiduciary Duty: Tier 1 9,468 Tier 2 47,340 Tier 3 2 1,893,610 12 U.S.C. 3110(a) Violation of Various Provisions of the International Banking Act (Federal Branches and Agencies): 43,275 12 U.S.C. 3110(c) Violation of Reporting Requirements of the International Banking Act (Federal Branches and Agencies): Tier 1 3,462 Tier 2 34,620 Tier 3 2 1,730,990 12 U.S.C. 3909(d)(1) Violation of International Lending Supervision Act 2,355 15 U.S.C. 78u-2(b) Violation of Various Provisions of the Securities Act, the Securities Exchange Act, the Investment Company Act, or the Investment Advisers Act: Tier 1 (natural person)—Per violation 8,908 Tier 1 (other person)—Per violation 89,078 Tier 2 (natural person)—Per violation 89,078 Tier 2 (other person)—Per violation 445,390 Tier 3 (natural person)—Per violation 178,156 Tier 3 (other person)—Per violation 890,780 15 U.S.C. 1639e(k) Violation of Appraisal Independence Requirements: First violation 10,875 Subsequent violations 21,749 42 U.S.C. 4012a(f)(5) Flood Insurance: Per violation 2,056

    (b) The maximum amount of each civil money penalty set forth in the chart in paragraph (a) of this section applies to penalties assessed on or after August 1, 2016.

    1 The maximum penalty amount is per day, unless otherwise indicated.

    2 The maximum penalty amount for a national bank is the lesser of this amount or 1 percent of total assets.

    3 These amounts also apply to CMPs in statutes that cross-reference 12 U.S.C. 1818, such as 12 U.S.C. 2804, 3108, 3349, 4309, and 4717 and 15 U.S.C. 1607, 1639e(k), 1693o, 1681s, 1691c, and 1692l.

    PART 109—RULES OF PRACTICE AND PROCEDURE IN ADJUDICATORY PROCEEDINGS 3. The authority citation for part 109 is revised to read as follows: Authority:

    5 U.S.C. 504, 554-557; 12 U.S.C. 1464, 1467, 1467a, 1468, 1817, 1818, 1820(k), 1829(e), 1832, 1884, 1972, 3349, 4717, 5412(b)(2)(B); 15 U.S.C. 78(l), 78o-5, 78u-2, 1639e; 28 U.S.C. 2461 note; 31 U.S.C. 5321; and 42 U.S.C. 4012a.

    4. Section 109.103 is amended by revising paragraph (c) to read as follows and by removing paragraph (d):
    § 109.103 Civil money penalties.

    (c) Maximum amount of civil money penalties. The maximum amount of each civil money penalty in the chart below applies to penalties assessed on or after August 1, 2016:

    U.S. Code citation CMP description Maximum penalty amount
  • (in dollars) 1
  • 12 U.S.C. 1464(v) Reports of Condition: 1st Tier 3,787 2nd Tier 37,872 3rd Tier 2 1,893,610 12 U.S.C. 1467(d) Refusal of Affiliate to Cooperate in Examination 9,468 12 U.S.C. 1467a(r) Late/Inaccurate Reports: 1st Tier 3,787 2nd Tier 37,872 3rd Tier 2 1,893,610 12 U.S.C. 1817(j)(16) Violation of Change in Bank Control Act: Tier 1 9,468 Tier 2 47,340 Tier 3 2 1,893,610 12 U.S.C. 1818(i)(2) 3 Violation of Law, Unsafe or Unsound Practice, or Breach of Fiduciary Duty: Tier 1 9,468 Tier 2 47,340 Tier 3 2 1,893,610 12 U.S.C. 1820(k)(6)(A)(ii) Violation of Post-Employment Restrictions: Per violation 311,470 12 U.S.C. 1832(c) Violation of Withdrawals by Negotiable or Transferable Instruments for Transfers to Third Parties: Per violation 2,500 12 U.S.C. 1884 Violation of the Bank Protection Act 275 12 U.S.C. 1972(2)(F) Violation of Provisions regarding Correspondent Accounts, Unsafe or Unsound Practices, or Breach of Fiduciary Duty: Tier 1 9,468 Tier 2 47,340 Tier 3 2 1,893,610 15 U.S.C. 78u-2(b) Violations of Various Provisions of the Securities Act, the Securities Exchange Act, the Investment Company Act, or the Investment Advisers Act: 1st Tier (natural person)—Per violation 8,908 1st Tier (other person)—Per violation 89,078 2nd Tier (natural person)—Per violation 89,078 2nd Tier (other person)—Per violation 445,390 3rd Tier (natural person)—Per violation 178,156 3rd Tier (other person)—Per violation 890,780 15 U.S.C. 1639e(k) Violation of Appraisal Independence Requirements: First violation 10,875 Subsequent violations 21,749 42 U.S.C. 4012a(f)(5) Flood Insurance: Per violation 2,056

    1 The maximum penalty amount is per day, unless otherwise indicated.

    2 The maximum penalty amount for a savings association is the lesser of this amount or 1 percent of total assets.

    3 These amounts also apply to statutes that cross-reference 12 U.S.C. 1818, such as 12 U.S.C. 2804, 3108, 3349, 4309, and 4717 and 15 U.S.C. 1607, 1639e(k), 1693o, 1681s, 1691c, and 1692l.

    Dated: June 23, 2016. Thomas J. Curry, Comptroller of the Currency.
    [FR Doc. 2016-15376 Filed 6-30-16; 8:45 am] BILLING CODE 4810-33-P
    FEDERAL HOUSING FINANCE AGENCY 12 CFR Parts 1209 and 1250 RIN 2590-AA88 Rules of Practice and Procedure; Civil Money Penalty Inflation Adjustment AGENCY:

    Federal Housing Finance Agency.

    ACTION:

    Interim final rule.

    SUMMARY:

    The Federal Housing Finance Agency (FHFA) is issuing this interim final rule amending its Rules of Practice and Procedure and other agency regulations to adjust each civil money penalty within its jurisdiction to account for inflation, pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. If, prior to the effective date of the interim final rule, FHFA does not receive any comments from which FHFA concludes that the rule should be revised, this rule will become final without further action by FHFA.

    DATES:

    Effective date: August 1, 2016.

    Comment date: Comments on the interim final rule must be received prior to August 1, 2016.

    ADDRESSES:

    You may submit your comments, identified by regulatory information number (RIN) 2590-AA88, by any of the following methods:

    Agency Web site: www.fhfa.gov/open-for-comment-or-input.

    Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. If you submit your comments to the Federal eRulemaking Portal, please also send it by email to FHFA at [email protected] to ensure timely receipt by the agency. Please include “RIN 2590-AA88” in the subject line of the message.

    Hand Delivery/Courier: The hand delivery address is: Alfred M. Pollard, General Counsel, Attention: Comments/RIN 2590-AA88, Federal Housing Finance Agency, Constitution Center, (OGC) Eighth Floor, 400 Seventh Street SW., Washington, DC 20219. The package should be delivered to the Seventh Street entrance Guard Desk, First Floor, on business days between 9 a.m. and 5 p.m.

    U.S. Mail, United Parcel Service, Federal Express, or Other Mail Service: The mailing address for comments is: Alfred M. Pollard, General Counsel, Attention: Comments/RIN 2590-AA88, Federal Housing Finance Agency, Constitution Center, (OGC) Eighth Floor, 400 Seventh Street SW., Washington, DC 20219.

    Copies of all comments will be posted without change, including any personal information you provide, such as your name, address, or phone number, on the FHFA Internet Web site at http://www.fhfa.gov. In addition, copies of all comments received will be available for examination by the public on business days between the hours of 10 a.m. and 3 p.m., at the Federal Housing Finance Agency, Eighth Floor, 400 Seventh Street SW., Washington, DC 20219. To make an appointment to inspect comments, please call the Office of General Counsel at (202) 649-3804.

    FOR FURTHER INFORMATION CONTACT:

    Stephen E. Hart, Deputy General Counsel, at (202) 649-3053, [email protected], or Frank R. Wright, Senior Counsel, at (202) 649-3087, [email protected] (not toll-free numbers); Federal Housing Finance Agency, 400 7th Street SW., Washington, DC 20219. The telephone number for the Telecommunications Device for the Hearing Impaired is: (800) 877-8339 (TDD only).

    SUPPLEMENTARY INFORMATION: I. Background

    FHFA is an independent agency of the Federal government and the financial safety and soundness regulator of the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, the Enterprises), the Federal Home Loan Banks (collectively, the Banks), and the Banks' Office of Finance under authority granted by the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (Safety and Soundness Act).1 FHFA oversees the Enterprises and Banks (collectively, the regulated entities) to ensure that they operate in a safe and sound manner and maintain liquidity in the housing finance market in accordance with applicable laws, rules, and regulations. To that end, FHFA is vested with broad supervisory discretion and specific civil administrative enforcement powers, similar to such authority granted by Congress to the Federal bank regulatory agencies.2

    1See Federal Housing Enterprises Financial Safety and Soundness Act of 1992, Public Law 102-550, 106 Stat. 4078 (Oct. 28, 1992) as amended by the Federal Housing Finance Regulatory Reform Act of 2008, Public Law 110-289, 122 Stat. 2654, sections 1101 et seq. (July 30, 2008).

    2See Safety and Soundness Act, 12 U.S.C. 4513 and 4631-4641.

    Section 1376 of the Safety and Soundness Act (12 U.S.C. 4636) empowers FHFA to impose civil money penalties under specific conditions. FHFA's Rules of Practice and Procedure regulation (12 CFR part 1209) govern cease and desist proceedings, civil money penalty assessment proceedings, and other administrative adjudications.3 FHFA's Flood Insurance regulation (12 CFR part 1250) governs flood insurance responsibilities as they pertain to the Enterprises.4 FHFA's Implementation of the Program Fraud Civil Remedies Act of 1986 regulation (12 CFR part 1217) sets forth procedures for imposing civil penalties and assessments under the Program Fraud Civil Remedies Act (31 U.S.C. 3801 et seq.) on any person that makes a false claim for property, services or money from FHFA, or makes a false material statement to FHFA in connection with a claim, where the amount involved does not exceed $150,000.5

    3See 12 CFR part 1209.

    4See 12 CFR part 1250.

    5See generally, 31 U.S.C. 3801 et seq.

    The Adjustment Improvements Act

    The Federal Civil Penalties Inflation Adjustment Act of 1990 (“Inflation Adjustment Act”), as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (“Adjustment Improvements Act”), requires FHFA, as well as other Federal agencies with the authority to issue civil money penalties (CMPs), to adjust by regulation the maximum amount of each CMP authorized by law that the agency has jurisdiction to administer.6 The Adjustment Improvements Act requires agencies to make an initial “catch-up” adjustment of their CMPs upon the statute's enactment, and further requires agencies to make additional adjustments on an annual basis following the initial adjustment.7

    6See 28 U.S.C. 2461 note.

    7 The Adjustment Improvements Act superseded the Debt Collection Improvement Act of 1996, which was used to prepare FHFA's Civil Money Penalty Inflation Adjustment rule, published at 81 FR 8369 (February 22, 2016.).

    The Adjustment Improvements Act provides that the initial catch-up adjustment must be implemented by an interim final rule and will be based on the percent change between the Consumer Price Index for all Urban Consumers (CPI-U) for October 2015 and the CPI-U for the month of October in the year that the civil money penalty was established or adjusted under a provision of law other than the Inflation Adjustment Act. Previous inflation adjustments made under the Inflation Adjustment Act prior to the Adjustment Improvements Act are not considered in making the catch-up adjustment.8 In the future, annual inflation adjustments will be based on the percent change between the October CPI-U preceding the date of the adjustment and the October CPI-U for the year before that.

    8 Earlier inflation adjustments such as those issued in 81 FR 8369 are not considered in determining the amount of the catch-up adjustment.

    II. Differences Between the Federal Home Loan Banks and the Enterprises

    When promulgating any regulation that may have future effect relating to the Banks, the Director is required by section 1313(f) of the Safety and Soundness Act to consider the differences between the Banks and the Enterprises with respect to the Banks' cooperative ownership structure; mission of providing liquidity to members; affordable housing and community development mission; capital structure; and joint and several liability (12 U.S.C. 4513(f)).9 The Director considered the differences between the Banks and the Enterprises, as they relate to the above factors, and determined that this interim final rule is appropriate. In sum, the five differences identified in section 1313(f) of the Safety and Soundness Act do not require a different enforcement regulation for the Banks than for the Enterprises, and in any event, the inflation adjustments effected by the interim final rule are mandated by law.

    9 So in original; no paragraphs (d) and (e) were enacted. See 12 U.S.C.A. 4513 n 1.

    III. Description of the Rule

    This interim final rule adjusts the maximum penalty amount within each of the three tiers specified in 12 U.S.C. 4636 by amending the table contained in 12 CFR 1209.80 to reflect the new adjusted maximum penalty amount that FHFA may impose upon a regulated entity or any entity-affiliated party within each tier. The increases in maximum penalty amounts contained in this interim final rule may not necessarily affect the amount of any CMP that FHFA may seek for a particular violation, which may not be the maximum that the law allows; FHFA would calculate each CMP on a case-by-case basis in light of a variety of factors.10 This rule also adjusts the maximum penalty amounts for violations under the FHFA Flood Insurance regulation by amending the text of 12 CFR 1250.3 to reflect the new adjusted maximum penalty amount that FHFA may impose for violations under that regulation. FHFA has adjusted the maximum amounts for penalties under the Program Fraud Civil Remedies Act in a separate rule required by that Act, which was also published today in this edition of the Federal Register.

    10See, e.g., 12 CFR 1209.7(c); FHFA Enforcement Policy, AB 2013-03 (May 31, 2013).

    The Adjustment Improvements Act directs federal agencies to calculate each initial catch-up CMP adjustment as the percent change between the CPI-U for October 2015 and the CPI-U for October of the calendar year in which the amount of each CMP was set.11 The maximum CMP amounts for FHFA penalties under 12 U.S.C. 4636 were set in 2008.12 Since FHFA is making this round of catch-up adjustments in calendar year 2016, and the maximum CMP amounts were last set in calendar year 2008, the inflation adjustment amount for each maximum CMP amount was calculated by comparing the CPI-U for October 2008 with the CPI-U for October 2015, resulting in an inflation factor of 1.09819. For each maximum CMP amount, the product of this inflation adjustment and the previous maximum penalty amount was then rounded to the nearest whole dollar as required by the Adjustment Improvements Act, and was then summed with the previous maximum penalty amount to determine the new adjusted maximum penalty amount.13 The table below sets out these items accordingly.

    11 For the initial adjustment under the Adjustment Improvements Act a CMP is considered to have been set in the calendar year during which the amount of such CMP was established or adjusted under a provision of law other than the Inflation Adjustment Act.

    12See 12 U.S.C. 4636.

    13 28 U.S.C. 2461 note.

    U.S. Code citation Description Previous
  • maximum
  • penalty
  • amount
  • Rounded
  • inflation
  • increase
  • New adjusted maximum
  • penalty
  • amount
  • 12 U.S.C. 4636(b)(1) First Tier 10,000 982 10,982 12 U.S.C. 4636(b)(2) Second Tier 50,000 4910 54,910 12 U.S.C. 4636(b)(4) Third Tier (Entity-affiliated party and Regulated entity) 2,000,000 196,380 2,196,380

    The CMP for FHFA penalties under the Flood Insurance regulation were set in 2009.14 Since FHFA is making this round of adjustments in calendar year 2016, and the maximum CMP amounts were last set in calendar year 2009, the inflation adjustment amount for each maximum CMP amount was calculated by comparing the CPI-U for October 2009 with the CPI-U for October 2015, resulting in an inflation factor of 1.10020. The table below sets out these items accordingly.

    14See 74 FR 2347, 2349 (Jan. 15, 2009).

    U.S. Code citation Description Previous
  • maximum
  • penalty
  • amount
  • Rounded
  • inflation
  • increase
  • New adjusted maximum
  • penalty
  • amount
  • 42 U.S.C. 4012a(f)(5) Maximum penalty per violation 485 49 534 42 U.S.C. 4012a(f)(5) Maximum total penalties assessed against an Enterprise in a calendar year 140,000 14,028 154,028
    IV. Regulatory Impact Administrative Procedure Act

    FHFA finds good cause that notice and an opportunity to comment on this interim final rule are unnecessary under section 553(b) of the Administrative Procedure Act (APA), 5 U.S.C. 553(b). This rulemaking conforms with and is consistent with the statutory directive set forth in the Inflation Adjustment Act. As a result, there are no issues of policy discretion about which to seek public comment. Furthermore, the rule is mandated by the Adjustment Improvements Act to be adopted in interim final form. Accordingly, FHFA is issuing the amendments as an interim final rule.

    In addition, FHFA finds good cause to make this rule effective thirty days after publication of this document in the Federal Register under the APA. The rule adjusts the amount of each CMP tier as dictated by the Inflation Adjustment Act, and, as noted above, is mandated by the Adjustment Improvements Act to be adopted as an interim final rule, presumptively with no greater delayed effective date than the APA otherwise provides.

    Regulatory Flexibility Act

    Pursuant to the Regulatory Flexibility Act (RFA),15 an agency must prepare a regulatory flexibility analysis for all proposed and final rules that describes the impact of the rule on small entities, unless the head of an agency certifies that the rule will not have “a significant economic impact on a substantial number of small entities.” However, the RFA applies only to rules for which an agency publishes a general notice of proposed rulemaking pursuant to the APA,16 and FHFA is required by statute to issue this rule as an interim final rule. As a result FHFA has determined for good cause that the APA does not require a general notice of proposed rulemaking for this rule. Thus, the RFA does not apply to this interim final rule.

    15 5 U.S.C. 603.

    16 5 U.S.C. 603(a), 604(a).

    Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. 3501 et seq.) requires that regulations involving the collection of information receive clearance from the Office of Management and Budget (OMB). This rule contains no such collection of information requiring OMB approval under the Paperwork Reduction Act. Consequently, no information has been submitted to OMB for review.

    List of Subjects 12 CFR Part 1209

    Administrative practice and procedure, Penalties.

    12 CFR Part 1250

    Flood insurance, Government-sponsored enterprises, Penalties, Reporting and record keeping requirements.

    Accordingly, for the reasons stated in the SUPPLEMENTARY INFORMATION and under the authority of 12 U.S.C. 4513b and 12 U.S.C. 4526, the Federal Housing Finance Agency hereby amends subchapters A and C of chapter XII of Title 12 of the Code of Federal Regulations as follows:

    PART 1209—RULES OF PRACTICE AND PROCEDURE 1. The authority citation for part 1209 continues to read as follows: Authority:

    5 U.S.C. 554, 556, 557, and 701 et seq.; 12 U.S.C. 1430c(d); 12 U.S.C. 4501, 4502, 4503, 4511, 4513, 4513b, 4517, 4526, 4566(c)(1) and (c)(7), 4581-4588, 4631-4641; and 28 U.S.C. 2461 note.

    2. Revise § 1209.80 to read as follows:
    § 1209.80 Inflation adjustments.

    The maximum amount of each civil money penalty within FHFA's jurisdiction, as set by the Safety and Soundness Act and thereafter adjusted in accordance with the Inflation Adjustment Act, is as follows:

    U.S. Code citation Description New adjusted maximum
  • penalty amount
  • 12 U.S.C. 4636(b)(1) First Tier $10,982 12 U.S.C. 4636(b)(2) Second Tier 54,910 12 U.S.C. 4636(b)(4) Third Tier (Regulated Entity or Entity-Affiliated party) 2,196,380
    3. Revise § 1209.81 to read as follows:
    § 1209.81 Applicability.

    The inflation adjustments set out in § 1209.80 shall apply to civil money penalties assessed in accordance with the provisions of the Safety and Soundness Act, 12 U.S.C. 4636, and subparts B and C of this part, for violations occurring after August 1, 2016.

    PART 1250—FLOOD INSURANCE 4. The authority citation for part 1250 continues to read as follows: Authority:

    12 U.S.C. 4521(a)(4) and 4526; 28 U.S.C. 2461 note; 42 U.S.C. 4001 note; 42 U.S.C. 4012a(f)(3), (4), (5), (8), (9), and (10).

    5. Revise § 1250.3(c) to read as follows:
    § 1250.3 Civil money penalties.

    (c) Amount. The maximum civil money penalty amount is $485 for each violation that occurs before August 1, 2016, with total penalties not to exceed $140,000. For violations that occur on or after August 1, 2016, the civil money penalty under this section may not exceed $534 for each violation, with total penalties assessed under this section against an Enterprise during any calendar year not to exceed $154,028.

    Dated: June 27, 2016. Melvin L. Watt, Director, Federal Housing Finance Agency.
    [FR Doc. 2016-15619 Filed 6-30-16; 8:45 am] BILLING CODE 8070-01-P
    FEDERAL HOUSING FINANCE AGENCY 12 CFR Part 1217 RIN 2590-AA76 Implementation of the Program Fraud Civil Remedies Act of 1986 AGENCY:

    Federal Housing Finance Agency.

    ACTION:

    Interim final rule.

    SUMMARY:

    The Federal Housing Finance Agency (FHFA) is adopting an interim final rule to implement the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.) (PFCRA), by establishing administrative procedures for imposing civil penalties and assessments against persons who make false, fictitious, or fraudulent claims or written statements to FHFA in the context of its contracting or employment activities, where the amount of money or the value of property or services involved or requested from FHFA is $150,000 or less. FHFA previously issued a notice of proposed rulemaking to implement PFCRA. This rule is issued as an interim final rule rather than as a final rule because it increases the maximum penalty amount set forth in the proposed rule as required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Adjustment Improvements Act), and that Act also requires that such “catch up” adjustments be published in the form of an interim final rule. If, prior to the effective date of the interim final rule, FHFA does not receive any comments from which FHFA concludes that the rule should be revised, this rule will become final without further action by FHFA.

    DATES:

    Effective Date: August 1, 2016.

    Comment Date: Comments on the interim final rule must be received prior to August 1, 2016.

    ADDRESSES:

    You may submit your comments, identified by regulatory information number (RIN) 2590-AA76, by any of the following methods:

    Agency Web site: www.fhfa.gov/open-for-comment-or-input.

    Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. If you submit your comments to the Federal eRulemaking Portal, please also send it by email to FHFA at [email protected] to ensure timely receipt by the agency. Please include “RIN 2590-AA76” in the subject line of the message.

    Hand Delivery/Courier: The hand delivery address is: Alfred M. Pollard, General Counsel, Attention: Comments/RIN 2590-AA76, Federal Housing Finance Agency, Constitution Center, (OGC) Eighth Floor, 400 Seventh Street SW., Washington, DC 20219. The package should be delivered to the Seventh Street entrance Guard Desk, First Floor, on business days between 9 a.m. and 5 p.m.

    U.S. Mail, United Parcel Service, Federal Express, or Other Mail Service: The mailing address for comments is: Alfred M. Pollard, General Counsel, Attention: Comments/RIN 2590-AA76, Federal Housing Finance Agency, Constitution Center, (OGC) Eighth Floor, 400 Seventh Street SW., Washington, DC 20219.

    Copies of all comments will be posted without change, including any personal information you provide, such as your name, address, or phone number, on the FHFA Internet Web site at http://www.fhfa.gov. In addition, copies of all comments received will be available for examination by the public on business days between the hours of 10 a.m. and 3 p.m., at the Federal Housing Finance Agency, Eighth Floor, 400 Seventh Street, SW., Washington, DC 20219. To make an appointment to inspect comments, please call the Office of General Counsel at (202) 649-3804.

    FOR FURTHER INFORMATION CONTACT:

    Maura Dundon, Assistant General Counsel, Office of the General Counsel, (202) 649-3961, [email protected], or Ellen Bailey, Managing Associate General Counsel, Office of General Counsel, (202) 649-3056, [email protected], 400 Seventh Street SW., Eighth Floor, Washington, DC 20219 (not toll free numbers). The telephone number for the Telecommunications Device for the Hearing Impaired is (800) 877-8339.

    SUPPLEMENTARY INFORMATION: I. Background A. General

    The Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.) (PFCRA) requires FHFA, as an “authority,” to establish by rule procedures for imposing civil penalties and assessments on any person who makes a false claim for property, services, or money from FHFA, or makes a false material statement to FHFA in connection with a claim, where the amount involved does not exceed $150,000.1 A “claim” as defined in the Act includes a request, demand, or submission for property, services, or money from FHFA or a party to a contract with FHFA, including money representing benefits.2 A “statement” is any representation, certification, affirmation, document, record, or accounting or bookkeeping entry with respect to a claim, a contract or a bid or proposal for a contract with FHFA, or a benefit from FHFA.3 For covered claims and statements, PFCRA provides an administrative remedy as an alternative to judicial action, where the Department of Justice (DOJ) has declined to prosecute under the civil False Claims Act, 31 U.S.C. 3729.4

    1See 31 U.S.C. 3801(a)(1)(C) and 3803(g); see also 5 U.S.C., App. 3, 11(2).

    2 31 U.S.C. 3801(a)(3).

    3Id. at section 3801(a)(9).

    4See S.Rep. No. 99-212 at 6, 99th Cong., 1st Sess. 6 (1985) (“[E]xisting remedies are not adequate to cope with the problem of fraud in Federal programs. The Committee [of Governmental Affairs of the Senate], therefore, believes that an alternative administrative remedy is needed to adjudicate small-dollar false claim and statement cases that otherwise would not be initiated civilly.”).

    PFCRA establishes a process of (a) investigation by the “investigating official,” who, by statute, is the Inspector General (IG) of the agency or a designee of the IG; (b) review by the agency's “reviewing official,” designated by the agency head, to determine if adequate evidence of liability exists; 5 and (c) review by DOJ. If the Attorney General approves use of the PFCRA process, PFCRA authorizes the reviewing official to initiate an action by providing notice to the person alleged to be liable; if a hearing on the record is requested, it is before a “presiding official,” which by statute is an Administrative Law Judge (ALJ) appointed or detailed for such purpose.6 PFCRA also establishes appeal rights to the agency head by any person determined by an ALJ to be liable, and further review is available by a U.S. District Court.7

    5 31 U.S.C. 3801(a)(8)(A) and 3803. The Director of FHFA has designated the General Counsel of FHFA as FHFA's reviewing official. See 80 FR 79719, 79719 n.5 (Dec. 23, 2015).

    6 31 U.S.C. 3803.

    7Id.; see also section 3805.

    A civil penalty may be imposed for making a false claim or statement to an agency even if the agency did not provide any money, property, services, or benefits to any person as a result. Where money, property, services, or benefits were provided as a result of the person's false claim or statement, an “assessment” may also be imposed as the administrative equivalent of damages. The maximum amount of any civil penalty is established by PFCRA, subject to periodic adjustments for inflation, and PFCRA also caps any assessment at an amount equal to twice the value of the money, property, services, or benefits provided.8

    8Id. at section 3802(a)(1) and (3).

    Following PFCRA's enactment in 1986, an interagency task force was established under the leadership of the Department of Health and Human Services to develop model implementing regulations by all affected agencies and departments. This action was consistent with the expectation that “regulations would be substantively uniform throughout the government, except as necessary to meet the specific needs of a particular agency or program.” 9 For that reason, FHFA reviewed the PFCRA rules of other departments and agencies and has modeled its proposed and interim final rule on the final rules of the Federal Deposit Insurance Corporation (FDIC) and Department of Housing and Urban Development (HUD).10 The FDIC rule was employed because, like FHFA, FDIC is a federal financial safety and soundness regulator. FHFA's supervisory, regulatory, enforcement, and resolution powers are similar to FDIC's, and both FDIC and FHFA have express independent litigating authority and authority to bring administrative actions for civil money penalties for false claims or statements made to them by their regulated institutions or entities and affiliated parties separate and apart from authority provided by PFCRA. The HUD rule was employed as it provides a structural model and an established operational approach.

    9See S. Rep. No. 99-212 at 12; see also 52 FR 27423 (July 21, 1987).

    10See 12 CFR part 308, subpart T (FDIC) and 24 CFR part 28 (HUD) (2015).

    B. Proposed Rule

    On December 23, 2015, FHFA published a proposed rule to implement PFCRA.11

    11See 80 FR 79719.

    Similar to the FDIC in its final rule, FHFA proposed that its PFCRA rule would apply only to FHFA's employment and contracting activities, and not to FHFA's supervisory, regulatory, enforcement, conservatorship, or receivership activities because other civil and administrative remedies available to FHFA are adequate to redress fraud in the areas not covered. FHFA noted in the notice of proposed rulemaking that it intended that the PFCRA administrative process not be confused with ordinary Agency procedures available in regulatory or conservatorship situations.12 FHFA also proposed a process to investigate and adjudicate PFCRA claims in accordance with PFCRA's procedural requirements.13 Should a PFCRA case proceed to adjudication by an ALJ, FHFA proposed to use its existing Rules of Practice and Procedure, which were incorporated by reference.14

    12Id. at 79720.

    13Id. at 79720-79721.

    14Id. at 79721.

    FHFA's proposed rule also established a maximum civil penalty that reflected an inflation adjustment to the statutory PFCRA civil penalty, addressed an assessment in lieu of damages of up to twice the amount of the false, fictitious, or fraudulent claim, and stated that the PFCRA rule would not preclude the imposition of any other authorized actions or sanctions currently employed by FHFA, including debarment and suspension of contractors.15

    15Id.

    FHFA invited comments on all aspects of the proposed rule during a 60-day comment period that closed on February 22, 2016. FHFA received one comment from a private citizen that did not address the substance of the proposed rule.

    II. Analysis of Final Rule; Publication as an Interim Final Rule

    FHFA has determined that no changes to the scope and process of the rule as proposed are necessary in light of comments received. Following publication of the proposed rule, however, FHFA reviewed provisions of the recently enacted Adjustment Improvements Act and has determined that further adjustment of the maximum penalty is required.16 Both the requirement that the penalty be adjusted and the adjustment formula to be applied are set forth in the Adjustment Improvements Act. Further, the Adjustment Improvements Act requires agencies to publish adjustments in accordance with that Act in an interim final rule.17 Consequently, FHFA is publishing this rule as an interim final rule to meet that requirement. If, prior to the effective date of the interim final rule, FHFA does not receive any comments from which FHFA concludes that the rule should be revised, this rule will become final without further action by FHFA.

    16 Section 701, Public Law 114-74 (Nov. 2, 2015), codified as 28 U.S.C. 2461 note.

    17 28 U.S.C. 2461 note, section 4(b)(1)(A).

    Scope. As does the FDIC's PFCRA rule, FHFA's interim final rule states that it applies to FHFA's employment and contracting activities and does not apply to FHFA's supervisory, regulatory, enforcement, conservatorship, or receivership activities because other civil and administrative remedies available to FHFA with regard to its regulated entities (Fannie Mae, Freddie Mac (together, the Enterprises), any affiliate of an Enterprise, and the Federal Home Loan Banks) and the Office of Finance of the Federal Home Loan Bank System (OF) or any other entity-affiliated party are adequate to redress fraud in the areas not covered. This statement of scope is almost identical to the scope set forth by the FDIC in its PFCRA rule, at 12 CFR 308.500(c).18

    18 FDIC's PFCRA rule applies to FDIC's employment and contracting activities but does not apply to false claims or statements made in connection with FDIC's regulatory, supervision, enforcement, insurance, receivership or liquidation responsibilities. See 12 CFR 308.500(c). FDIC explained that, as so limited, its rule was consistent with PFCRA's underlying purpose “to provide federal agencies with an administrative remedy for `small dollar fraud' cases for which there is no other remedy because the cases are too small for the [DOJ] to prosecute,” and distinguished FDIC's circumstances from those of other agencies based on its other available administrative remedies and on its independent litigating authority. 65 FR 52352 (Aug. 29, 2000) (proposed rule); see also 66 FR 9187, 9188 (Feb. 7, 2001) (final rule).

    In the event a regulated entity, any affiliate of an Enterprise, or the OF or any other entity-affiliated party made a false claim on or provided false information to FHFA in its supervisory, regulatory, enforcement, conservatorship, or receivership activities, FHFA has other available administrative remedies and independent litigating authority. See generally 12 U.S.C. 4513, 4514, 4585, and 4636. As a result, even without PFCRA, FHFA could pursue administrative or judicial remedies for such false claims or statements on its own behalf with similar or greater effect.

    FHFA also notes that its PFCRA rule would not apply to false claims or statements made by any person to any regulated entity, an affiliate of an Enterprise, or the OF. PFCRA generally does not apply to false claims or statements made to private companies conducting private business activities, unless those companies are allocating money, property, services or benefits where the actual provider is the United States government.19 Because the regulated entities, including any affiliate of an Enterprise, and the OF do not receive United States government money, property, services, or benefits from FHFA, FHFA's interim final rule implementing PFCRA does not apply to any false claim or statement by any person to any regulated entity, including any affiliate of an Enterprise, or the OF.20

    19 31 U.S.C. 3801(a)(3)(B). Application of PFCRA does not require or imply the establishment of a principal-agent relationship.

    20 If a regulated entity, an affiliate of an Enterprise, or the OF were to allocate United States government money, property, services, or benefits to any person on behalf of another agency or department of the Federal government, then any PFCRA rule of that other agency or department may be applicable.

    Process. Pursuant to PFCRA and FHFA's interim final rule, FHFA's “investigating official” (under PFCRA, the FHFA IG or the IG's designee) is responsible for initiating an investigation of any claim or statement believed to be false.21 The investigating official submits a report containing information about the case (including exculpatory information), the potential violation, and other relevant information relating to liability to the General Counsel of FHFA, the “reviewing official” designated by the Director of FHFA.22 The reviewing official (or the designee thereof) would then make a determination of whether there is adequate evidence of liability. If so, the reviewing official would provide written notice to the Attorney General of the intent to refer the allegations to an ALJ as presiding officer. Under the terms of PFCRA and the authority of the Attorney General, DOJ could elect to bring an action for civil relief under other applicable law, or the FHFA action may be deferred or postponed to avoid interference with a criminal investigation or prosecution by the Attorney General.

    21See 31 U.S.C. 3801(a)(4)(A).

    22See 31 U.S.C. 3801(a)(8)(A), requiring the agency head to designate a reviewing official; see also footnote 5, supra.

    If the Attorney General approves the use of PFCRA, FHFA's reviewing official may refer the case to an ALJ as presiding officer. To initiate the action, the reviewing official must provide notice to any person who is subject to the allegation of liability. That person may then request a formal hearing on the record and is entitled to all exculpatory information in the possession of the investigating official or the reviewing official. If a hearing is requested, the ALJ would determine liability based on the preponderance of the evidence and the amount of any penalty (and, if appropriate, any assessment) to be imposed. The interim final rule implements statutory provisions for an appeal of the ALJ's decision to the Director of FHFA as the “authority head” and then to the appropriate U.S. District Court.

    FHFA's interim final rule provides for hearing and appeal rights of persons subject to allegations of liability for any penalty or assessment under PFCRA. FHFA currently has Rules of Practice and Procedure in place at title 12 of the Code of Federal Regulations, part 1209, which establish evidentiary, hearing, and appeals procedures and processes for hearings on the record at FHFA. Similar to the HUD rule, FHFA's PFCRA rule cross-references its existing administrative enforcement procedures for purposes of PFCRA actions. FHFA's existing rules of procedure were issued subject to a notice and comment rulemaking process and, by using them for purposes of any PFCRA action, FHFA ensures due process and procedural consistency.

    Maximum Penalty Amount. PFCRA establishes a maximum civil penalty of $5,000 for each violation of the Act.23 That amount is required to be adjusted for inflation by the Adjustment Improvements Act, which also sets forth the formula for the initial, or “catch up,” adjustment.24 FHFA has incorporated that adjustment into its interim final rule, resulting in a maximum penalty amount of $10,781. This is an increase in the maximum penalty amount initially set forth in the proposed rule, but it is required to comply with the Adjustment Improvements Act. This is the only substantive change FHFA has made to the rule as proposed.25

    23See 31 U.S.C. 3802(a).

    24 28 U.S.C. 2461 note. The Adjustment Improvements Act amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (“1990 Adjustment Act”). To establish the maximum civil penalty in its proposed rule, FHFA applied the initial adjustment formula set forth in the 1990 Adjustment Act. That formula has been repealed by, and replaced with a “catch up” adjustment formula set forth in, the Adjustment Improvements Act.

    25 This interim final rule also corrects a typographical error in the rule text at section 1217.9: a reference to “subpart B” of FHFA's Rules of Practice and Procedure at 12 CFR part 1209 that should have been to “subpart C,” where other sections of the proposed rule correctly referred to “subpart C” (see sections 1217.1(a)(2) and 1217.6(b)(8), 80 FR at 79721 and 79723) and, in read context, the reference to “subpart C” was clearly intended.

    The Adjustment Improvements Act also requires that such “catch-up” adjustments be published in the form of an interim final rule. This rule is issued as an interim final rule, rather than as a final rule, only for purposes of meeting that requirement. If, prior to the effective date of the interim final rule, FHFA does not receive any comments from which FHFA concludes that the rule should be revised, this rule will become final without further action by FHFA.

    III. Paperwork Reduction Act

    The interim final rule does not contain any collections of information pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). Therefore, FHFA has not submitted any information to the Office of Management and Budget for review.

    IV. Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires that a regulation that has a significant economic impact on a substantial number of small entities, including small businesses and or small organizations, must include an initial regulatory flexibility analysis describing the regulation's impact on small entities. Such an analysis need not be undertaken if the agency has certified that the regulation will not have a significant economic impact on a substantial number of small entities.26 FHFA has considered the impact of the interim final rule under the Regulatory Flexibility Act. The General Counsel of FHFA certifies that the interim final rule is not likely to have a significant economic impact on a substantial number of small entities, because the regulation merely fulfills a statutory requirement under PFCRA to establish procedures for imposing civil penalties and assessments against those persons who have violated existing prohibitions against making fraudulent claims or statements to FHFA in its contracting and employment activities, and does not alter any underlying requirements or prohibitions or impose any new requirements or prohibitions on persons subject to regulation by FHFA.

    26See 5 U.S.C. 605(b).

    List of Subjects in 12 CFR Part 1217

    Civil remedies, Program fraud.

    Authority and Issuance

    Accordingly, for the reasons stated in the preamble, and under the authority of 12 U.S.C. 4511, 4513, 4514, 4526, 4585 and 4636 and 31 U.S.C. 3803, FHFA amends subchapter A of Chapter XII of Title 12 of the Code of Federal Regulations by adding a new Part 1217 to read as follows:

    PART 1217—PROGRAM FRAUD CIVIL REMEDIES ACT Sec. 1217.1 Purpose and scope. 1217.2 Definitions. 1217.3 Basis for civil penalties and assessments. 1217.4 Investigation. 1217.5 Request for approval by the Department of Justice. 1217.6 Notice. 1217.7 Response. 1217.8 Statute of limitations. 1217.9 Hearings. 1217.10 Settlements. Authority:

    12 U.S.C. 4501; 12 U.S.C. 4526, 28 U.S.C. 2461 note; 31 U.S.C. 3801-3812.

    § 1217.1 Purpose and scope.

    (a) Purpose. This part:

    (1) Establishes administrative procedures for imposing civil penalties and assessments against persons who make, submit, or present, or cause to be made, submitted, or presented, false, fictitious, or fraudulent claims or written statements to FHFA or to its agents; and

    (2) Specifies the hearing and appeal rights of persons subject to allegations of liability for such penalties and assessments. Hearings under this part shall be conducted in accordance with the Administrative Procedure Act pursuant to part 1209, subpart C, of this chapter.

    (b) Scope. This part applies only to persons who make, submit, or present or cause to be made, submitted, or presented false, fictitious, or fraudulent claims or written statements to FHFA or to those acting on its behalf in connection with FHFA employment matters and FHFA contracting activities. It does not apply to false claims or statements made in connection with matters or activities related to FHFA's supervisory, regulatory, enforcement, conservatorship, or receivership responsibilities, as other civil and administrative actions available to FHFA to redress fraud in such areas provide for remedies that are equal to or exceed those available through this part.

    § 1217.2 Definitions.

    As used in this part:

    Ability to pay is determined based on a review of the respondent's resources available both currently and prospectively, from which FHFA could ultimately recover the total penalty, and as appropriate, assessment, which may be predicted based on historical evidence.

    Assessment means a monetary penalty that is in addition to a civil penalty and may be imposed if FHFA has made any payment, transferred property, or provided services for a claim that is determined to be in violation of paragraph (a)(1) of § 1217.3. An assessment may not exceed an amount that is twice the amount of the claim or portion of the claim determined to be in violation of paragraph (a)(1) of § 1217.3. A civil penalty other than an assessment may be imposed whether or not FHFA has made a payment, transferred property, or provided services in response to the false claim or statement.

    Benefit means anything of value, including, but not limited to, any advantage, preference, privilege, license, permit, favorable decision, ruling, or status.

    Claim means any request, demand, or submission:

    (1) Made to FHFA for property, services, or money (including money representing benefits);

    (2) Made to a recipient of property, services, or money from FHFA or to a party to a contract with FHFA:

    (i) For property or services, if FHFA:

    (A) Provided such property or services;

    (B) Provided any portion of the funds for the purchase of such property or services; or

    (C) Will reimburse such recipient or party for the purchase of such property or services; or

    (ii) For the payment of money (including money representing benefits) if the United States:

    (A) Provided any portion of the money requested or demanded; or

    (B) Will reimburse such recipient or party for any portion of the money paid on such request or demand; or

    (3) Made to FHFA, which has the effect of decreasing an obligation to pay or account for property, services, or money.

    Investigating official means the FHFA Inspector General, or an officer or employee of the FHFA Office of Inspector General designated by the FHFA Inspector General.

    Knows or has reason to know. (1) For purposes of establishing liability under 31 U.S.C. 3802 and this part, means that a person, with respect to a claim or statement:

    (i) Has actual knowledge that the claim or statement is false, fictitious, or fraudulent;

    (ii) Acts in deliberate ignorance of the truth or falsity of the claim or statement; or

    (iii) Acts in reckless disregard of the truth or falsity of the claim or statement.

    (2) No proof of specific intent to defraud is required for purposes of establishing liability under 31 U.S.C. 3802 or this part.

    Makes a claim or statement includes making, presenting, or submitting the claim or statement and causing the claim or statement to be made, presented, or submitted.

    Notice means the charging document served by FHFA to commence an administrative proceeding to impose a civil penalty and, if appropriate, an assessment under chapter 38 of subtitle III of title 31, U.S.C., and this part.

    Person means any individual, partnership, corporation, association, or private organization.

    Presiding officer means an administrative law judge appointed under 5 U.S.C. 3105 or detailed to FHFA under 5 U.S.C. 3344.

    Reasonable prospect of collecting an appropriate amount of penalties and assessments is determined based on a generalized analysis made by the reviewing official, based on the limited information available in the report of investigation for purposes of determining whether the allocation of FHFA's resources to any particular action is appropriate.

    Report of investigation means a report containing the findings and conclusions of an investigation under chapter 38 of subtitle III of title 31, U.S.C., by the investigating official, as described in § 1217.4.

    Respondent means any person alleged to be liable for a civil penalty or assessment under § 1217.3.

    Reviewing official means the General Counsel of FHFA, as so designated by the Director pursuant to 31 U.S.C. 3801(a)(8)(A).

    Statement means, unless the context indicates otherwise, any representation, certification, affirmation, document, record, or accounting or bookkeeping entry made:

    (1) With respect to a claim or to obtain the approval or payment of a claim (including relating to eligibility to make a claim); or

    (2) With respect to (including relating to eligibility for) a contract with, or a bid or proposal for a contract with, or benefit from, FHFA or any State, political subdivision of a State, or other party, if FHFA provides any portion of the money or property under such contract or benefit, or if FHFA will reimburse such State, political subdivision, or party for any portion of the money or property under such contract or for such benefit.

    § 1217.3 Basis for civil penalties and assessments.

    (a) False, fictitious or fraudulent claims. (1) A civil penalty of not more than $10,781 may be imposed upon a person who makes a claim to FHFA for property, services, or money where the person knows or has reason to know that the claim:

    (i) Is false, fictitious, or fraudulent;

    (ii) Includes or is supported by a written statement that:

    (A) Asserts a material fact which is false, fictitious, or fraudulent; or

    (B) Omits a material fact and, as a result of the omission, is false, fictitious, or fraudulent, where the person making, presenting, or submitting such statement has a duty to include such material fact; or

    (iii) Is for payment for the provision of property or services to FHFA which the person has not provided as claimed.

    (2) Each voucher, invoice, claim form, or other individual request or demand for property, services, or money constitutes a separate claim for purposes of this part.

    (3) A claim shall be considered made to FHFA, a recipient, or party when the claim is actually made to an agent, fiscal intermediary, or other entity, acting for or on behalf of FHFA, the recipient, or the party.

    (4) Each claim for property, services, or money is subject to a civil penalty, without regard to whether the property, services, or money actually is delivered or paid.

    (5) There is no liability under this part if the amount of money or value of property or services claimed exceeds $150,000 as to each claim that a person submits. For purposes of this paragraph (a), a group of claims submitted simultaneously as part of a single transaction shall be considered a single claim.

    (6) If the FHFA has made any payment, transferred property, or provided services for a claim, then FHFA may make an assessment against a person found liable in an amount of up to twice the amount of the claim or portion of the claim that is determined to be in violation of paragraph (a)(1) of this section. This assessment is in addition to the amount of any civil penalty imposed.

    (b) False, fictitious or fraudulent statements. (1) A civil penalty of up to $10,781 may be imposed upon a person who makes a written statement to FHFA with respect to a claim, contract, bid or proposal for a contract, or benefit from FHFA that:

    (i) The person knows or has reason to know:

    (A) Asserts a material fact which is false, fictitious, or fraudulent; or

    (B) Omits a material fact and is false, fictitious, or fraudulent as a result of such omission, where the person making, presenting, or submitting such statement has a duty to include such material fact; and

    (ii) Contains or is accompanied by an express certification or affirmation of the truthfulness and accuracy of the contents of the statement.

    (2) Each written representation, certification, or affirmation constitutes a separate statement.

    (3) A statement shall be considered made to FHFA when the statement is actually made to an agent, fiscal intermediary, or other entity acting for or on behalf of FHFA.

    (c) Joint and several liability. A civil penalty or assessment may be imposed jointly and severally if more than one person is determined to be liable.

    § 1217.4 Investigation.

    (a) General. FHFA may initiate an action under chapter 38 of subtitle III of title 31, U.S.C., and this part against a respondent only upon an investigation by the investigating official.

    (b) Subpoena. Pursuant to 31 U.S.C. 3804(a), the investigating official may require by subpoena the production of records and other documents. The subpoena shall state the authority under which it is issued, identify the records sought, and name the person designated to receive the records. The recipient of the subpoena shall provide a certification that the documents sought have been produced, that the documents are not available and the reasons they are not available, or that the documents, suitably identified, have been withheld based upon the assertion of an identified privilege.

    (c) Investigation report. If the investigating official concludes that an action under chapter 38 of subtitle III of title 31, U.S.C., and this part may be warranted, the investigating official shall prepare a report containing the findings and conclusions of the investigation, including:

    (1) A description of the claim or statement at issue;

    (2) The evidence supporting the allegations;

    (3) An estimate of the amount of money or the value of property, services, or other benefits requested or demanded in violation of § 1217.3; and

    (4) Any exculpatory or mitigating circumstances that may relate to the claim or statement.

    (d) Referrals to the Attorney General. The investigating official may refer allegations directly to the Department of Justice for civil relief under other applicable law, as appropriate, or may defer or postpone submitting a report to the reviewing official to avoid interference with a criminal investigation or prosecution.

    § 1217.5 Request for approval by the Department of Justice.

    (a) General. If the reviewing official determines that the report of investigation supports an action under this part, the reviewing official must submit a written request to the Department of Justice for approval to issue a notice under § 1217.6.

    (b) Content of request. A request under this section shall include:

    (1) A description of the claim or statement at issue;

    (2) The evidence supporting the allegations;

    (3) An estimate of the amount of money or the value of property, services, or other benefits requested or demanded in violation of § 1217.3;

    (4) Any exculpatory or mitigating circumstances that may relate to the claim or statement; and

    (5) A statement that there is a reasonable prospect of collecting an appropriate amount of penalties and assessments. Determining there is a reasonable prospect of collecting an appropriate amount of penalties and assessments is separate from determining ability to pay, and may not be considered in determining the amount of any penalty or assessment in any particular case.

    § 1217.6 Notice.

    (a) Commencement of action; notice. Upon obtaining approval from the Department of Justice, the reviewing official may commence an action to establish liability of the respondent under the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.) and this part. To commence an action, the reviewing official must issue a notice to the respondent of the allegations of liability against the respondent. The notice shall be mailed, by registered or certified mail, or shall be delivered through such other means by which delivery may be confirmed.

    (b) Notice contents. The notice required under this section shall include:

    (1) The allegations of liability against the respondent, including the statutory basis for liability, the claim or statement at issue, and the reasons why liability arises from that claim or statement;

    (2) A statement that the required approval to issue the notice was received from the Department of Justice;

    (3) The amount of the penalty and, if applicable, any assessment for which the respondent may be held liable;

    (4) A statement that the respondent may request a hearing by submitting a written response to the notice;

    (5) The addresses to which a response must be sent in accordance with § 1209.15 of this chapter;

    (6) A statement that failure to submit an answer within 30 days of receipt of the notice may result in the imposition of the maximum amount of penalties and assessments sought, without right of appeal;

    (7) A statement that the respondent must preserve and maintain all documents and data, including electronically stored data, within the possession or control of the respondent that may relate to the allegations; and

    (8) A copy of this part 1217 and part 1209, subpart C of this chapter.

    (c) Obligation to preserve documents. Upon the issuance of a notice under this section, FHFA and the respondent shall each preserve and maintain all documents and data, including electronically stored data, within their respective possession or control that may relate to the allegations in the complaint.

    § 1217.7 Response.

    (a) General. (1) To obtain a hearing, the respondent must file a written response to a notice under § 1217.6:

    (i) In accordance with § 1209.24 of this chapter; and

    (ii) Not later than 30 days after the date of service of the notice.

    (2) A timely filed response to a notice under § 1217.6 shall be deemed to be a request for a hearing.

    (3) A response to a notice under § 1217.6 must include:

    (i) The admission or denial of each allegation of liability made in the notice;

    (ii) Any defense on which the respondent intends to rely;

    (iii) Any reasons why the penalty and, if appropriate, any assessment should be less than the amount set forth in the notice; and

    (iv) The name, address, and telephone number of the person who will act as the respondent's representative, if any.

    (b) Failure to respond. If no response to a notice under this part is timely submitted, FHFA may file a motion for default judgment in accordance with § 1209.24(c) of this part.

    § 1217.8 Statute of limitations.

    The statute of limitations for commencing a hearing under this part shall be tolled:

    (a) If the hearing is commenced in accordance with 31 U.S.C. 3803(d)(2)(B) within 6 years after the date on which the claim or statement is made; or

    (b) If the parties agree to such tolling.

    § 1217.9 Hearings.

    (a) General. Hearings under this part shall be conducted in accordance with the procedures in subpart C of part 1209 of this chapter, governing actions in accordance with subchapter II of chapter 5, U.S.C. (commonly known as the Administrative Procedure Act).

    (b) Factors to consider in determining amount of penalties and assessments. In determining an appropriate amount of any civil penalty and, if appropriate, any assessment, the presiding officer and, upon appeal, the Director or designee thereof, shall consider and state in his or her opinion any mitigating or aggravating circumstances. The amount of penalties and assessments imposed shall be based on the presiding officer's and the Director's or designee's consideration of evidence in support of one or more of the following factors:

    (1) The number of false, fictitious, or fraudulent claims or statements;

    (2) The time period over which such claims or statements were made;

    (3) The degree of the respondent's culpability with respect to the misconduct;

    (4) The amount of money or the value of the property, services, or benefit falsely claimed;

    (5) The value of the actual loss to FHFA as a result of the misconduct, including foreseeable consequential damages and the cost of investigation;

    (6) The relationship of the civil penalties to the amount of the loss to FHFA;

    (7) The potential or actual impact of the misconduct upon public health or safety or public confidence in the management of FHFA programs and operations, including particularly the impact on the intended beneficiaries of such programs;

    (8) Whether the respondent has engaged in a pattern of the same or similar misconduct;

    (9) Whether the respondent attempted to conceal the misconduct;

    (10) The degree to which the respondent has involved others in the misconduct or in concealing it;

    (11) If the misconduct of employees or agents is imputed to the respondent, the extent to which the respondent's practices fostered or attempted to preclude the misconduct;

    (12) Whether the respondent cooperated in or obstructed an investigation of the misconduct;

    (13) Whether the respondent assisted in identifying and prosecuting other wrongdoers;

    (14) The complexity of the program or transaction, and the degree of the respondent's sophistication with respect to it, including the extent of the respondent's prior participation in the program or in similar transactions;

    (15) Whether the respondent has been found, in any criminal, civil, or administrative proceeding, to have engaged in similar misconduct or to have dealt dishonestly with the Government of the United States or of a State, directly or indirectly;

    (16) The need to deter the respondent and others from engaging in the same or similar misconduct;

    (17) The respondent's ability to pay; and

    (18) Any other factors that in any given case may mitigate or aggravate the seriousness of the false claim or statement.

    (c) Stays ordered by the Department of Justice. If at any time the Attorney General or an Assistant Attorney General designated by the Attorney General notifies the Director in writing that continuation of FHFA's action may adversely affect any pending or potential criminal or civil action related to the claim or statement at issue, the presiding officer or the Director shall stay the FHFA action immediately. The FHFA action may be resumed only upon receipt of the written authorization of the Attorney General.

    § 1217.10 Settlements.

    (a) General. The reviewing official, on behalf of FHFA, and the respondent may enter into a settlement agreement under § 1209.20 of this chapter at any time prior to the issuing of a notice of final decision under § 1209.55 of this chapter.

    (b) Failure to comply. Failure of the respondent to comply with a settlement agreement shall be sufficient cause for resuming an action under this part, or for any other judicial or administrative action.

    Dated: June 27, 2016. Melvin L. Watt, Director, Federal Housing Finance Agency.
    [FR Doc. 2016-15620 Filed 6-30-16; 8:45 am] BILLING CODE 8070-01-P
    DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2016-4551; Directorate Identifier 2016-NE-07-AD; Amendment 39-18576; AD 2016-13-12] RIN 2120-AA64 Airworthiness Directives; Rolls-Royce Deutschland Ltd & Co KG Turbofan Engines AGENCY:

    Federal Aviation Administration (FAA), DOT.

    ACTION:

    Final rule.

    SUMMARY:

    We are adopting a new airworthiness directive (AD) for certain Rolls-Royce Deutschland Ltd & Co KG (RRD) BR700-710A1-10, -710A2-20, and -710C4-11 turbofan engines. This AD requires removing the pawl carrier pivot pins, part number (P/N) BRR17117, from service and replacing them with parts eligible for installation. This AD was prompted by a seized low-pressure turbine (LPT) fuel shut-off pawl carrier caused by corrosion of the pawl carrier pivot pin. We are issuing this AD to prevent failure of the fuel shut-off mechanism, which could result in uncontained part release, damage to the engine, and damage to the airplane.

    DATES:

    This AD becomes effective August 5, 2016.

    ADDRESSES:

    For service information identified in this final rule, contact Rolls-Royce Deutschland Ltd & Co KG, Eschenweg 11, Dahlewitz, 15827 Blankenfelde-Mahlow, Germany; phone: +49 (0) 33 7086 2673; fax: +49 (0) 33 7086 3276. You may view this service information at the FAA, Engine & Propeller Directorate, 1200 District Avenue, Burlington, MA. For information on the availability of this material at the FAA, call 781-238-7125. It is also available on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2016-4551.

    Examining the AD Docket

    You may examine the AD docket on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2016-4551; or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this AD, the mandatory continuing airworthiness information (MCAI), the regulatory evaluation, any comments received, and other information. The address for the Docket Office (phone: 800-647-5527) is Document Management Facility, U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590.

    FOR FURTHER INFORMATION CONTACT:

    Philip Haberlen, Aerospace Engineer, Engine Certification Office, FAA, Engine & Propeller Directorate, 1200 District Avenue, Burlington, MA 01803; phone: 781-238-7770; fax: 781-238-7199; email: [email protected].

    SUPPLEMENTARY INFORMATION: Discussion

    We issued a notice of proposed rulemaking (NPRM) to amend 14 CFR part 39 by adding an AD that would apply to the specified products. The NPRM was published in the Federal Register on April 1, 2016 (81 FR 18806). The NPRM proposed to correct an unsafe condition for the specified products. The MCAI states:

    Seizing of a fuel shut-off mechanism pawl carrier was reported. The subsequent investigation determined that corrosion of the pawl carrier pivot pin P/N BRR17117, was the failure cause.

    This condition, if not corrected, could lead to loss of the fuel shut-off mechanism functionality and loss of the engine over-speed protection, possibly resulting in release of high-energy debris, with consequent damage to, and/or reduced control of the airplane.

    You may obtain further information by examining the MCAI in the AD docket on the Internet at http://www.regulations.gov by searching for and locating Docket No. FAA-2016-4551.

    Comments

    We gave the public the opportunity to participate in developing this AD. We received no comments on the NPRM (81 FR 18806, April 1, 2016).

    Conclusion

    We reviewed the available data and determined that air safety and the public interest require adopting this AD as proposed.

    Related Service Information

    RRD has issued Alert Service Bulletin (ASB) BR700-72-A101523, Revision 3, dated December 10, 2015. The service information describes procedures for replacing the pawl carrier pivot pins. This service information is reasonably available because the interested parties have access to it through their normal course of business or by the means identified in the ADDRESSES section.

    Costs of Compliance

    We estimate that this AD affects 4 engines installed on airplanes of U.S. registry. We also estimate that it will take about 3 hours per engine to comply with this AD. The average labor rate is $85 per hour. Required parts cost about $860 per engine. Based on these figures, we estimate the cost of this AD on U.S. operators to be $4,460.

    Authority for This Rulemaking

    Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. “Subtitle VII: Aviation Programs,” describes in more detail the scope of the Agency's authority.

    We are issuing this rulemaking under the authority described in “Subtitle VII, Part A, Subpart III, Section 44701: General requirements.” Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.

    Regulatory Findings

    We determined that this AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government.

    For the reasons discussed above, I certify this AD:

    (1) Is not a “significant regulatory action” under Executive Order 12866,

    (2) Is not a “significant rule” under the DOT Regulatory Policies and Procedures (44 FR 11034, February 26, 1979),

    (3) Will not affect intrastate aviation in Alaska to the extent that it justifies making a regulatory distinction, and

    (4) Will not have a significant economic impact, positive or negative, on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.

    List of Subjects in 14 CFR Part 39

    Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.

    Adoption of the Amendment

    Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows:

    PART 39—AIRWORTHINESS DIRECTIVES 1. The authority citation for part 39 continues to read as follows: Authority:

    49 U.S.C. 106(g), 40113, 44701.

    § 39.13 [Amended]
    2. The FAA amends § 39.13 by adding the following new airworthiness directive (AD): 2016-13-12 Rolls-Royce Deutschland GmbH (Type Certificate previously held by Rolls-Royce Deutschland GmbH, formerly BMW Rolls-Royce GmbH): Amendment 39-18576; Docket No. FAA-2016-4551; Directorate Identifier 2016-NE-07-AD. (a) Effective Date

    This AD becomes effective August 5, 2016.

    (b) Affected ADs

    None.

    (c) Applicability

    (1) This AD applies to:

    (i) Rolls-Royce Deutschland (RRD) BR700-710A1-10 engines with serial number (S/N) 11505 and below and with a low-pressure turbine (LPT) module, part number (P/N) M51-104 or P/N M51-111, installed;

    (ii) RRD BR700-710A2-20 engines with S/N 12492 and below and with an LPT module, P/N M51-108 or P/N M51-111, installed;

    (iii) RRD BR700-710C4-11 engines with S/N 15277 and below, with configuration standard 710C4-11 engraved on the engine data plate and with an LPT module, P/N M51-112, installed; and

    (iv) RRD BR700-710C4-11 engines with S/N 15329 and below, with configuration standard 710C4-11/10 engraved on the engine data plate and with an LPT module, P/N M51-112, installed.

    (2) Reserved.

    (d) Reason

    This AD was prompted by a seized LPT fuel shut-off pawl carrier caused by corrosion of the pawl carrier pivot pin. We are issuing this AD to prevent failure of the fuel shut-off mechanism, which could result in uncontained part release, damage to the engine, and damage to the airplane.

    (e) Actions and Compliance

    Comply with this AD within the compliance times specified, unless already done.

    (1) Within 6 months after the effective date of this AD, remove each pawl carrier pivot pin, P/N BRR17117, from service and replace with a part eligible for installation.

    (2) Reserved.

    (f) Alternative Methods of Compliance (AMOCs)

    The Manager, Engine Certification Office, FAA, may approve AMOCs for this AD. Use the procedures found in 14 CFR 39.19 to make your request. You may email your request to: [email protected].

    (g) Related Information

    (1) For more information about this AD, contact Philip Haberlen, Aerospace Engineer, Engine Certification Office, FAA, Engine & Propeller Directorate, 1200 District Avenue, Burlington, MA 01803; phone: 781-238-7770; fax: 781-238-7199; email: [email protected].

    (2) Refer to MCAI European Aviation Safety Agency AD 2016-0034, dated February 24, 2016, for more information. You may examine the MCAI in the AD docket on the Internet at http://www.regulations.gov by searching for and locating it in Docket No. FAA-2016-4551.

    (3) RRD Alert Service Bulletin BR700-72-A101523, Revision 3, dated December 10, 2015, can be obtained from RRD using the contact information in paragraph (g)(4) of this AD.

    (4) For service information identified in this AD, contact Rolls-Royce Deutschland Ltd & Co KG, Eschenweg 11, Dahlewitz, 15827 Blankenfelde-Mahlow, Germany; phone: +49 (0) 33 7086 2673; fax: +49 (0) 33 7086 3276.

    (5) You may view this service information at the FAA, Engine & Propeller Directorate, 1200 District Avenue, Burlington, MA. For information on the availability of this material at the FAA, call 781-238-7125.

    (h) Material Incorporated by Reference

    None.

    Issued in Burlington, Massachusetts, on June 23, 2016. Colleen M. D'Alessandro, Manager, Engine & Propeller Directorate,Aircraft Certification Service.
    [FR Doc. 2016-15351 Filed 6-30-16; 8:45 am] BILLING CODE 4910-13-P
    DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 71 [Docket No. FAA-2016-4234; Airspace Docket No. 16-ACE-3] Amendment of Class E Airspace for the Following Kansas Towns; Belleville, KS; Johnson, KS; Marysville, KS; Pittsburg, KS; and Washington, KS AGENCY:

    Federal Aviation Administration (FAA), DOT.

    ACTION:

    Final rule.

    SUMMARY:

    This action modifies Class E airspace extending upward from 700 feet above the surface at Belleville Municipal Airport, Belleville, KS; Stanton County Municipal Airport, Johnson, KS; Marysville Municipal Airport, Marysville, KS; Atkinson Municipal Airport, Pittsburg, KS; and Washington County Veteran's Memorial Airport, Washington, KS. Decommissioning of non-directional radio beacons (NDBs), cancellation of NDB approaches, and implementation of area navigation (RNAV) procedures have made these actions necessary for the safety and management of Instrument Flight Rules (IFR) operations at the above airports. This action also updates the geographic coordinates at Marysville Municipal Airport, Marysville, KS; and Atkinson Municipal Airport, Pittsburg, KS; and the name of Washington County Veteran's Memorial Airport (formerly Washington County Memorial Airport) to coincide with the FAAs aeronautical database.

    DATES:

    Effective 0901 UTC, November 10, 2016. The Director of the Federal Register approves this incorporation by reference action under Title 1, Code of Federal Regulations, part 51, subject to the annual revision of FAA Order 7400.9 and publication of conforming amendments.

    ADDRESSES:

    FAA Order 7400.9Z, Airspace Designations and Reporting Points, and subsequent amendments can be viewed online at http://www.faa.gov/air_traffic/publications/. For further information, you can contact the Airspace Policy Group, Federal Aviation Administration, 800 Independence Avenue SW., Washington, DC 20591; telephone: 202-267-8783. The Order is also available for inspection at the National Archives and Records Administration (NARA). For information on the availability of FAA Order 7400.9Z at NARA, call 202-741-6030, or go to http://www.archives.gov/federal_register/code_of_federal-regulations/ibr_locations.html.

    FAA Order 7400.9, Airspace Designations and Reporting Points, is published yearly and effective on September 15.

    FOR FURTHER INFORMATION CONTACT:

    Jeffrey Claypool, Federal Aviation Administration, Operations Support Group, Central Service Center, 10101 Hillwood Parkway, Fort Worth, TX 76177; telephone (817) 222-5711.

    SUPPLEMENTARY INFORMATION: Authority for This Rulemaking

    The FAA's authority to issue rules regarding aviation safety is found in Title 49 of the United States Code. Subtitle I, Section 106 describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the agency's authority. This rulemaking is promulgated under the authority described in Subtitle VII, Part A, Subpart I, Section 40103. Under that section, the FAA is charged with prescribing regulations to assign the use of airspace necessary to ensure the safety of aircraft and the efficient use of airspace. This regulation is within the scope of that authority as it amends Class E airspace at Belleville Municipal Airport, Belleville, KS; Stanton County Municipal Airport, Johnson, KS; Marysville Municipal Airport, Marysville, KS; Atkinson Municipal Airport, Pittsburg, KS; and Washington County Veteran's Memorial Airport, Washington, KS.

    History

    On March 29, 2016, the FAA published in the Federal Register a notice of proposed rulemaking (NPRM) to modify Class E airspace at Belleville Municipal Airport, Belleville, KS; Stanton County Municipal Airport, Johnson, KS; Marysville Municipal Airport, Marysville, KS; Atkinson Municipal Airport, Pittsburg, KS; and Washington County Veteran's Memorial Airport, Washington, KS (81 FR 17420) Docket No. FAA-2016-4234. Interested parties were invited to participate in this rulemaking effort by submitting written comments on the proposal to the FAA. No comments were received. Subsequent to publication, the FAA found an editorial error in the legal description for Marysville, KS; and the name of the town in the airspace designation and legal description for Atkinson Municipal Airport. These errors are corrected in this rule.

    Class E airspace designations are published in paragraph 6005 of FAA Order 7400.9Z, dated August 6, 2015, and effective September 15, 2015, which is incorporated by reference in 14 CFR 71.1. The Class E airspace designations listed in this document will be published subsequently in the Order.

    Availability and Summary of Documents for Incorporation by Reference

    This document amends FAA Order 7400.9Z, Airspace Designations and Reporting Points, dated August 6, 2015, and effective September 15, 2015. FAA Order 7400.9Z is publicly available as listed in the ADDRESSES section of this document. FAA Order 7400.9Z lists Class A, B, C, D, and E airspace areas, air traffic service routes, and reporting points.

    The Rule

    This amendment to Title 14, Code of Federal Regulations (14 CFR) part 71 modifies Class E airspace extending upward from 700 feet above the surface by removing the approach extensions at Belleville Municipal Airport, Belleville, KS; Stanton County Municipal Airport, Johnson, KS; Marysville Municipal Airport, Marysville, KS; and Atkinson Municipal Airport, Pittsburg, KS, due to decommissioning of NDBs, removal of NDB approaches, and the implementation of RNAV standard instrument approach procedures at the airports. Also, controlled airspace at Washington County Veteran's Memorial Airport is reduced from a 7.3-mile radius to a 6.3-mile radius of the airport. This action also updates the geographic coordinates of Marysville Municipal Airport, Marysville, KS, and Atkinson Municipal Airport, Pittsburg, KS, as well as noting the correct town for Atkinson Municipal Airport. Additionally, this action notes the name of Washington County Veteran's Memorial Airport (formerly Washington County Memorial Airport) to coincide with the FAAs aeronautical database. This rule is necessary for the safety and management of IFR operations under standard instrument approach procedures at the above airports.

    Regulatory Notices and Analyses

    The FAA has determined that this regulation only involves an established body of technical regulations for which frequent and routine amendments are necessary to keep them operationally current, is non-controversial and unlikely to result in adverse or negative comments. It, therefore: (1) Is not a “significant regulatory action” under Executive Order 12866; (2) is not a “significant rule” under DOT Regulatory Policies and Procedures (44 FR 11034; February 26, 1979); and (3) does not warrant preparation of a Regulatory Evaluation as the anticipated impact is so minimal. Since this is a routine matter that only affects air traffic procedures and air navigation, it is certified that this rule, when promulgated, does not have a significant economic impact on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.

    Environmental Review

    The FAA has determined that this action qualifies for categorical exclusion under the National Environmental Policy Act in accordance with FAA Order 1050.1F, “Environmental Impacts: Policies and Procedures,” paragraph 5-6.5.a. This airspace action is not expected to cause any potentially significant environmental impacts, and no extraordinary circumstances exist that warrant preparation of an environmental assessment.

    Lists of Subjects in 14 CFR Part 71

    Airspace, Incorporation by reference, Navigation (air).

    Adoption of the Amendment

    In consideration of the foregoing, the Federal Aviation Administration amends 14 CFR part 71 as follows:

    PART 71—DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR TRAFFIC SERVICE ROUTES; AND REPORTING POINTS 1. The authority citation for part 71 continues to read as follows: Authority:

    49 U.S.C. 106(f), 106(g); 40103, 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.

    § 71.1 [Amended]
    2. The incorporation by reference in 14 CFR 71.1 of FAA Order 7400.9Z, Airspace Designations and Reporting Points, dated August 6, 2015, and effective September 15, 2015, is amended as follows: Paragraph 6005 Class E Airspace Areas Extending Upward From 700 Feet or More Above the Surface of the Earth. ACE KS E5 Belleville, KS [Amended] Belleville Municipal Airport, KS (Lat. 39°49′04″ N., long. 97°39′35″ W.)

    That airspace extending upward from 700 feet above the surface within a 6.4-mile radius of Belleville Municipal Airport.

    ACE KS E5 Johnson, KS [Amended] Stanton County Municipal Airport, KS (Lat. 37°35′07″ N., long. 101°43′56″ W.)

    That airspace extending upward from 700 feet above the surface within a 6.6-mile radius of Stanton County Municipal Airport.

    ACE KS E5 Marysville, KS [Amended] Marysville Municipal Airport, KS (Lat. 39°51′23″ N., long. 96°37′51″ W.)

    That airspace extending upward from 700 feet above the surface within a 6.5-mile radius of Marysville Municipal Airport.

    ACE KS E5 Pittsburg, KS [Amended] Pittsburg, Atkinson Municipal Airport, KS (Lat. 37°26′58″ N., long. 94°43′52″ W.)

    That airspace extending upward from 700 feet above the surface within a 6.6-mile radius of Atkinson Municipal Airport.

    ACE KS E5 Washington, KS [Amended] Washington County Veteran's Memorial Airport, KS (Lat. 39°44′07″ N., long. 97°02′51″ W.)

    That airspace extending upward from 700 feet above the surface within a 6.3-mile radius of Washington County Veteran's Memorial Airport.

    Issued in Fort Worth, Texas, on June 22, 2016. Walter Tweedy, Acting Manager, Operations Support Group, ATO Central Service Center.
    [FR Doc. 2016-15406 Filed 6-30-16; 8:45 am] BILLING CODE 4910-13-P
    NATIONAL AERONATICS AND SPACE ADMINISTRATION 14 CFR Part 1214 [Docket No: NASA-2015-0010] RIN 2700-AD98 Space Flight AGENCY:

    National Aeronautics and Space Administration.

    ACTION:

    Final rule.

    SUMMARY:

    The National Aeronautics and Space Administration (NASA) is issuing a final rule for its regulations that govern International Space Station crewmembers, mementos aboard Orion and Space Launch System (SLS) missions, and the authority of the NASA Commander, and removes the Agency's policy on space flight participation and other policies that were relevant to the Space Shuttle. The revision to this rule is part of NASA's retrospective plan under Executive Order (EO) 13563 completed in August 2011. NASA's full plan can be accessed on the Agency's open Government Web site at http://www.nasa.gov/open/.

    DATES:

    Effective: August 1, 2016.

    FOR FURTHER INFORMATION CONTACT:

    Craig Salvas at (202)-358-2330, [email protected]

    SUPPLEMENTARY INFORMATION:

    Background

    NASA published a proposed rule in the Federal Register at 80 FR 63474 on October 20, 2015, to amend its regulations that govern International Space Station crewmembers, mementos aboard Orion and Space Launch System (SLS) missions, and the authority of the NASA Commander and removes the Agency's policy on space flight participation and other policies that were relevant to the Space Shuttle. The Space Shuttle Program formally commenced in 1972. After a total of 135 flights, the last of which occurred in July 2011, the Space Shuttle was officially retired after 30 years of operation. During this period, the fleet and its crews carried out a large and varied number of tasks to meet the goals and objectives of the Nation's space program. These included the launch of large interplanetary probes, the performance of scientific experiments under microgravity conditions, the on-orbit servicing of the Hubble Space Telescope, and the assembly and resupply of the International Space Station. Functions previously performed by the Space Shuttle will now be done by many different spacecraft currently flying or in development, including vehicles owned by both the Government and the private sector.

    NASA is currently developing a new human-rated spacecraft, the Orion, and launch system, the Space Launch System (SLS). The Orion and SLS are designed to conduct journeys into deep space. With the end of the Space Shuttle Program, many sections of this rule are no longer relevant and will be deleted. However, sections which have current or future application will be maintained and updated or amended as required.

    Significant elements of part 1214, in its current form, govern the use and operation of the Space Shuttle and cover a diverse number of areas including requirements for reimbursement for Space Shuttle services to civil U.S. Government and foreign users, the flight of Payload Specialists and Space Flight Participants on Space Shuttle missions, reimbursement terms, and conditions for use of the Spacelab Module. Also covered in part 1214 are the rules for the NASA Astronaut Candidate Recruitment and Selection Program, the Code of Conduct for the International Space Station Crew, and the Authority of the Space Shuttle Commander.

    The intent of these amendments is to repeal those portions of the regulation that, with the ending of the Space Shuttle Program, are no longer relevant. Sections that remain in effect will be amended because they are outdated. Other sections that are applicable to the Orion and SLS will also be amended. Provisions currently in force relating to approving mementoes for flight and preventing the use of mementoes for economic gain remain relevant and were incorrectly omitted from the proposed rule published on October 20, 2015. These provisions have been reincorporated in the final rule at 14 CFR 1214.601 and 1214.602, except for language relating to dimensions and areas specific to the Space Shuttle which have not been retained.

    Discussion and Analysis

    There were two public comments received in response to the proposed rule. Comments were supportive in nature and do not warrant any changes in the rule's language.

    Statutory Authority

    Section 1214 is established under the National Aeronautics and Space Act (Space Act) (51 U.S.C. 20101, et seq.).

    Regulatory Analysis Executive Order 12866, Regulatory Planning and Review and Executive Order 13563, Improving Regulation and Regulation Review

    Executive Orders 13563 and 12866 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility. This rule has been designated as “not significant” under section 3(f) of Executive Order 12866.

    Review Under the Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) requires an agency to prepare an initial regulatory flexibility analysis to be published at the time the rule is published. This requirement does not apply if the agency “certifies that the rule will not, if promulgated, have a significant economic impact on a substantial number of small entities” (5 U.S.C. 603). This rule updates these sections of the CFR to align with Federal guidelines and does not have a significant economic impact on a substantial number of small entities.

    Review Under the Paperwork Reduction Act

    This final rule does not contain any information collection requirements subject to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

    Review Under Executive Order of 13132

    Executive Order 13132, “Federalism,” 64 FR 43255 (August 4, 1999) requires regulations be reviewed for Federalism effects on the institutional interest of states and local governments, and if the effects are sufficiently substantial, preparation of the Federal assessment is required to assist senior policy makers. The amendments will not have any substantial direct effects on state and local governments within the meaning of the Executive Order. Therefore, no Federalism assessment is required.

    List of Subjects in 14 CFR Part 1214

    Government employees, Government procurement, Security measures, Space transportation and exploration.

    For the reason stated in the preamble, NASA is amending 14 CFR part 1214 as follows:

    PART 1214—SPACE FLIGHT 1. The authority citation for part 1214 is revised to read as follows: Authority:

    Pub. L. 111-314, sec. 3, 124 Stat. 3328 (51 U.S.C. 20101, et seq.).

    Subpart 1214.1—[Removed and Reserved] 2. Remove and reserve subpart 1214.1, consisting of §§ 1214.100 through 1214.119. Subpart 1214.2—[Removed and Reserved] 3. Remove and reserve subpart 1214.2, consisting of §§ 1214.200 through 1214.207 and Appendices A and B. Subpart 1214.3—[Removed and Reserved] 4. Remove and reserve subpart 1214.300, consisting of §§ 1214.300 through 1214.306. Subpart 1214.4—International Space Station Crew 5. The authority citation for subpart 4 is revised to read as follows: Authority:

    Pub. L. 111-314, sec. 3, 124 Stat. 3328 (51 U.S.C. 20101, et seq.).

    6. Revise subpart 1214.6 to read as follows: Subpart 1214.6—Mementos Aboard NASA Missions Sec. 1214.600 Scope. 1214.601 Definitions. 1214.602 Policy. 1214.603 Official Flight Kit. 1214.604 Personal Preference Kit. 1214.605-1214.606 [Reserved] 1214.607 Media and public inquiries. 1214.608 [Reserved] 1214.609 Loss or theft. 1214.610 Violations. Authority:

    Pub. L. 111-314, sec. 3, 124 Stat. 3328 (51 U.S.C. 20101, et seq.).

    Subpart 1214.6—Mementos Aboard NASA Missions
    § 1214.600 Scope.

    This subpart establishes policy and procedures for carrying mementos on the NASA missions, with the exception of mementos and personal effects carried onboard the International Space Station (ISS).

    § 1214.601 Definitions.

    Mementos. Flags, patches, insignia, medallions, minor graphics, and similar items of little commercial value, especially suited for display by the individuals or groups to whom they have been presented.

    § 1214.602 Policy.

    Premise. Mementos are welcome aboard NASA missions. However, they are flown as a courtesy—not as an entitlement. All mementos must be approved by the Associate Administrator for Human Exploration and Operations and are stowed only in an Official Flight Kit (OFK) or Personal Preference Kit (PPK).

    (a) Economic gain. Items carried in an OFK or a PPK will not be sold, transferred for sale, used or transferred for personal gain, or used or transferred for any commercial or fund-raising purpose. Items such as philatelic materials and coins that, by their nature, lend themselves to exploitation by the recipients, or create problems with respect to good taste; or that are large, bulky, or heavy items will not be approved for flight.

    (b) [Reserved]

    § 1214.603 Official Flight Kit.

    (a) Purpose. The Official Flight Kit (OFK) on a particular mission allows NASA, and other domestic and friendly foreign countries' organizations with NASA approval, to utilize mementos as awards and commendations or preserve them in museums or archives. No personal items will be carried in the OFK.

    (b) Approval of contents. At least 120 days prior to the scheduled launch of a particular mission, an authorized representative of each organization desiring mementos to be carried on a flight in the OFK must submit a letter or request describing the item(s) to be flown and the intended purpose or distribution. Letters should be directed to the Associate Administrator for Human Exploration and Operations, NASA Headquarters, Washington DC 20546.

    § 1214.604 Personal Preference Kit.

    (a) Purpose. The Personal Preference Kit (PPK) enables persons on a particular mission to carry personal items for use as mementos. Only those individuals actually accompanying such flights may request authorization to carry personal items as mementos.

    (b) Approval of content. At least 60 days prior to the scheduled launch of a particular mission, each person assigned to the flight who desires to carry items in a PPK must submit a proposed list of items and their recipients to the Associate Director, NASA Johnson Space Center. The Associate Director will review the proposed list of items and, if approved, submit the crew members' PPK lists through supervisory channels to the Associate Administrator for Human Exploration and Operations for approval. A signed copy of approval from the Associate Administrator for Human Exploration and Operations will be returned to the Director, NASA Johnson Space Center, for distribution.

    § 1214.605-1214.606 [Reserved]
    § 1214.607 Media and public inquiries.

    Information on mementos flown on a particular mission will be routinely released by the Associate Administrator of the Office of Communications to the media and to the public upon their request, but only after they have been approved for flight.

    § 1214.608 [Reserved]
    § 1214.609 Loss or Theft.

    (a) Liability. Neither NASA nor the U.S. Government will be liable for the loss or theft of, or damage to, items carried in OFKs or PPKs.

    (b) Report of loss or theft. Any person who learns that an item contained in an OFK or a PPK is missing shall immediately report the loss to the Johnson Space Center Security Office and the NASA Inspector General.

    § 1214.610 Violations.

    Any items carried in violation of the requirements of this subpart shall become property of the U.S. Government, subject to applicable Federal laws and regulations, and the violator may be subject to disciplinary action, including being permanently prohibited from use of, or if an individual, from flying aboard a NASA mission.

    Subpart 1214.7—The Authority of the NASA Commander 7. Revise subpart 1214.7 to read as follows: Sec. 1214.700 Scope. 1214.701 Definitions. 1214.702 Authority and responsibility of the NASA Commander. 1214.703 Chain of command. 1214.704 Violations. Authority:

    Pub. L. 111-314, sec. 3, 124 Stat. 3328 (51 U.S.C. 20101, et seq.).

    Subpart 1214.7—The Authority of the NASA Commander
    § 1214.700 Scope.

    This subpart establishes the authority of the NASA Commander of a NASA mission, excluding missions related to the ISS and activities licensed under Title 51 U.S.C. Chapter 509, to enforce order and discipline during a mission and to take whatever action in his/her judgment is reasonable and necessary for the protection, safety, and well-being of all personnel and on-board equipment, including the spacecraft and payloads. During the final launch countdown, following crew ingress, the NASA Commander has the authority to enforce order and discipline among all on-board personnel. During emergency situations prior to liftoff, the NASA Commander has the authority to take whatever action in his/her judgment is necessary for the protection or security, safety, and well-being of all personnel on board.

    § 1214.701 Definitions.

    (a) The flight crew consists of the NASA Commander, astronaut crew members, and [any] other persons aboard the spacecraft.

    (b) A mission is the period including the flight-phases from launch to landing on the surface of the Earth—a single round trip. (In the case of a forced landing, the NASA Commander's authority continues until a competent authority takes over the responsibility for the persons and property aboard).

    (c) The flight-phases consist of launch, in orbit/transit, extraterrestrial mission, deorbit, entry, and landing, and post-landing back on Earth.

    (d) A payload is a specific complement of instruments, space equipment, and support hardware/software carried into space to accomplish a scientific mission or discrete activity.

    § 1214.702 Authority and responsibility of the NASA Commander.

    (a) During all flight phases, the NASA Commander shall have the absolute authority to take whatever action is in his/her discretion necessary to:

    (1) Enhance order and discipline.

    (2) Provide for the safety and well-being of all personnel on board.

    (3) Provide for the protection of the spacecraft and payloads.

    The NASA Commander shall have authority, throughout the mission, to use any reasonable and necessary means, including the use of physical force, to achieve this end.

    (b) The authority of the NASA Commander extends to any and all personnel on board the spacecraft including Federal officers and employees and all other persons whether or not they are U.S. nationals.

    (c) The authority of the NASA Commander extends to all spaceflight elements, payloads, and activities originating with or defined to be a part of the NASA mission.

    (d) The NASA Commander may, when he/she deems such action to be necessary for the safety of the spacecraft and personnel on board, subject any of the personnel on board to such restraint as the circumstances require until such time as delivery of such individual or individuals to the proper authorities is possible.

    § 1214.703 Chain of command.

    (a) The NASA Commander is a trained NASA astronaut who has been designated to serve as commander on a NASA mission and who shall have the authority described in § 1214.702 of this part. Under normal flight conditions (other than emergencies or when otherwise designated) the NASA Commander is responsible to the Mission Flight Director.

    (b) Before each flight, the other flight crewmembers will be designated in the order in which they will assume the authority of the NASA Commander under this subpart in the event that the NASA Commander is not able to carry out his/her duties.

    (c) The determinations, if any, that a crewmember in the chain of command is not able to carry out his or her command duties and is, therefore, to be relieved of command, and that another crewmember in the chain of command is to succeed to the authority of the NASA Commander, will be made by the NASA Administrator or his/her designee.

    § 1214.704 Violations.

    (a) All personnel on board the NASA mission are subject to the authority of the NASA Commander and shall conform to his/her orders and direction as authorized by this subpart.

    (b) This subpart is a regulation within the meaning of 18 U.S.C. 799, and whoever willfully violates, attempts to violate, or conspires to violate any provision of this subpart or any order or direction issued under this subpart shall be subject to fines and imprisonment, as specified by law.

    Subpart 1214.8—[Removed and Reserved] 8. Remove and reserve subpart 1214.8, consisting sections 1214.800 through 1214.813. Subpart 1214.17—[Removed and Reserved] 9. Remove and reserve subpart 1214.17, consisting of sections 1214.1700 through 1214.1707. Cheryl E. Parker, Federal Register Liaison Officer.
    [FR Doc. 2016-15431 Filed 6-30-16; 8:45 am] BILLING CODE P
    SECURITIES AND EXCHANGE COMMISSION 17 CFR Part 201 [Release Nos. 33-10104; 34-78156; IA-4437; IC-32162; File No. S7-11-16] RIN 3235-AL94 Adjustments to Civil Monetary Penalty Amounts AGENCY:

    Securities and Exchange Commission.

    ACTION:

    Interim final rule; request for comment.

    SUMMARY:

    The Securities and Exchange Commission (the “Commission”) is adopting an interim final rule to implement the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, which amended the Federal Civil Penalties Inflation Adjustment Act of 1990, as previously amended by the Debt Collection Improvement Act of 1996. This interim final rule adjusts for inflation the maximum amount of civil monetary penalties under the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, the Investment Advisers Act of 1940, and certain penalties under the Sarbanes-Oxley Act of 2002.

    DATES:

    Effective Date: This interim final rule is effective on August 1, 2016. Comment Date: Comments on the interim final rule should be received on or before August 15, 2016.

    ADDRESSES:

    Comments may be submitted by any of the following methods:

    Electronic Comments

    • Use the Commission's Internet comment form (http://www.sec.gov/rules/proposed.shtml); or

    • Send an email to [email protected] Please include File Number S7-11-16 on the subject line; or

    • Use the Federal eRulemaking Portal (http://www.regulations.gov). Follow the instructions for submitting comments.

    Paper Comments

    • Send paper comments to Brent J. Fields, Secretary, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

    All submissions should refer to File Number S7-11-16. This file number should be included on the subject line if email is used. To help us process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission's Web site (http://www.sec.gov/rules/proposed.shtml). Comments are also available for Web site viewing and printing in the Commission's Public Reference Room, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. All comments received will be posted without change; we do not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. FOR FURTHER INFORMATION CONTACT:

    James A. Cappoli, Assistant General Counsel, Office of the General Counsel, at (202) 551-7923, or Stephen M. Ng, Senior Counsel, Office of the General Counsel, at (202) 551-7957.

    I. Background

    This interim final rule implements the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the “2015 Act”),1 which amends the Federal Civil Penalties Inflation Adjustment Act of 1990 (the “Inflation Adjustment Act”).2 The Inflation Adjustment Act had previously been amended by the Debt Collection Improvement Act of 1996 (“DCIA”) 3 to require that each federal agency adopt regulations at least once every four years that adjust for inflation the maximum amount of the civil monetary penalties (“CMPs”) under the statutes administered by the agency. Pursuant to the requirements of the DCIA, the Commission has previously adopted regulations in 1996, 2001, 2005, 2009, and 2013 to adjust the maximum amount of the CMPs under the statutes the Commission administers.4

    1 Public Law 114-74 Sec. 701, 129 Stat. 599-601 (Nov. 2, 2015), codified at 28 U.S.C. 2461 note.

    2 Public Law 101-410, 104 Stat. 890-892 (1990), codified at 28 U.S.C. 2461 note.

    3 Public Law 104-134, Title III, § 31001(s)(1), Apr. 26, 1996, 110 Stat. 1321-373, codified at 28 U.S.C. 2461 note.

    4See 17 CFR part 201.1001 to 1005, and Tables I to V to Subpart E.

    The 2015 Act replaces the inflation adjustment mechanism prescribed in the DCIA and all previous inflation adjustments made pursuant to the DCIA with a new mechanism for calculating the inflation-adjusted amount of CMPs. Each agency must first adjust the maximum amount of CMPs 5 with an initial “catch-up” adjustment.6 Each agency must then perform subsequent annual adjustments for inflation.7 This interim final rule implements the initial “catch-up adjustment,” which increases CMP amounts based on the percentage change between the Consumer Price Index for all Urban Consumers (“CPI-U”) for the month of October in the year the civil penalty was established or previously adjusted by a statute or regulation other than the Inflation Adjustment Act, and the October 2015 CPI-U.8 Annual inflation adjustments after this first catch-up adjustment will then be based on the percentage change between the October CPI-U preceding the date of the last adjustment made pursuant to the 2015 Act and the prior year's October CPI-U.9 Thus, in January 2017, the Commission will again adjust the maximum amount of the CMPs it administers based on the percentage change from the 2015 October CPI-U to the 2016 October CPI-U.

    5 The 2015 Act also applies to minimum penalty amounts and penalty ranges. See 28 U.S.C. 2461 note Sec. 5(a). All of the statutes administered by the Commission, however, only include maximum penalty amounts. Thus, in this interim final rule, we only refer to the effect of the 2015 Act on maximum penalty amounts.

    6 28 U.S.C. 2461 note Sec. 4(b)(1); Office of Management and Budget, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (February 24, 2016) (“OMB Guidance”) at 1, available at https://www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf.

    7 28 U.S.C. 2461 note Sec. 4(b)(2); OMB Guidance at 1.

    8 28 U.S.C. 2461 note Sec. 5(b)(2); OMB Guidance at 3. The catch-up adjustment excludes prior adjustments under the Inflation Adjustment Act, which were capped at 10 percent and thus contributed to a decline in the real value of penalties. See OMB Guidance at 3. The 2015 Act is intended to remedy this decline. See id.

    9 28 U.S.C. 2461 note Sec. 5; OMB Guidance at 4.

    A CMP is defined in relevant part as any penalty, fine, or other sanction that: (1) Is for a specific amount, or has a maximum amount, as provided by federal law; and (2) is assessed or enforced by an agency in an administrative proceeding or by a federal court pursuant to federal law.10 This definition applies to the monetary penalty provisions contained in four statutes administered by the Commission: The Securities Act of 1933; the Securities Exchange Act of 1934 (the “Exchange Act”); the Investment Company Act of 1940; and the Investment Advisers Act of 1940. In addition, the Sarbanes-Oxley Act of 2002 provides the Public Company Accounting Oversight Board (the “PCAOB”) authority to levy civil monetary penalties in its disciplinary proceedings pursuant to 15 U.S.C. 7215(c)(4)(D).11 The definition of a CMP in the 1990 Act encompasses such civil monetary penalties.12

    10 28 U.S.C. 2461 note Sec. 3(2). Thus the adjustments prescribed by the 2015 Act do not apply to penalties written as functions of violations or to civil penalties based on the defendant's gross pecuniary gain. OMB Guidance at 2.

    11 15 U.S.C. 7215(c)(4)(D).

    12 The Commission may by order affirm, modify, remand, or set aside sanctions, including civil monetary penalties, imposed by the PCAOB. See Section 107(c) of the Sarbanes-Oxley Act of 2002, 15 U.S.C. 7217. The Commission may enforce such orders in federal district court pursuant to Section 21(e) of the Securities Exchange Act of 1934. As a result, penalties assessed by the PCAOB in its disciplinary proceedings are penalties “enforced” by the Commission for purposes of the Act. See Adjustments to Civil Monetary Penalty Amounts, Release No. 33-8530 (Feb. 4, 2005) [70 FR 7606 (Feb. 14, 2005)].

    Accordingly, we are revising 17 CFR 201.1001 and Table I to Subpart E, to establish revised amounts for each CMP authorized by the Securities Act, the Exchange Act, the Investment Company Act, the Investment Advisers Act, and certain penalties under the Sarbanes-Oxley Act and removing § 201.1002 and Table II to Subpart E, § 201.1003 and Table III to Subpart E, § 201.1004 and Table IV to Subpart E, and § 201.1005 and Table V to Subpart E. The adjustments set forth in the amendment apply to all penalties imposed after the effective date of this interim final rule, including to penalties imposed for violations that occur before the effective date of the amendment.13

    13 28 U.S.C. 2461 note Sec. 6; OMB Guidance at 3-4.

    II. Summary of the Calculation

    In order to complete the catch-up adjustment required by the 2015 Act, the Commission must first identify, for each penalty, the year and corresponding penalty amount when the maximum penalty amount was established (i.e., as originally enacted by Congress), or last adjusted (i.e., by Congress in statute, or by the agency through regulation), whichever is later, other than pursuant to the Inflation Adjustment Act.14

    14 28 U.S.C. 2461 note Sec. 5(b)(2)(A); OMB Guidance at 3. References to the Inflation Adjustment Act here and below include the amendments made to that Act by the DCIA.

    The Commission must then modify the maximum amount of CMPs based on the percentage by which the CPI-U for the month of October 2015, not seasonally adjusted, exceeds the CPI-U for the month of October for the calendar year when the penalty amount was established or last adjusted. OMB has provided a table to all agencies that lists multipliers that can be used to adjust the maximum penalty amount based on the year the penalty was established or last adjusted (the “CPI-U Multiplier”).15 After applying this multiplier, the Commission must round all penalty amounts to the nearest dollar. In accordance with the 2015 Act, however, the Commission shall not increase catch-up penalty amounts by more than 150 percent of the corresponding penalty amount in effect on November 2, 2015, including penalty adjustments made pursuant to the Inflation Adjustment Act prior to that date.16

    15 28 U.S.C. 2461 note Sec. 5(b)(2)(B); OMB Guidance at 3, Table A.

    16 28 U.S.C. 2461 note Sec. 5(b)(2)(C); OMB Guidance at 3. Because the 150 percent limitation is on the amount of the increase, the adjusted penalty will be up to 250 percent above the amount in effect on November 2, 2015.

    To explain the inflation adjustment calculation for CMP amounts under the 2015 Act, we provide the following example based on the CMP for certain insider trading violations by controlling persons in Exchange Act Section 21A(a)(3).17

    17 15 U.S.C. 78u-1(a)(3).

    Step 1: The Commission identifies the year that the CMP was established or last adjusted and the maximum CMP for that year. The maximum penalty amount for this provision was established in 1988 by the Insider Trading and Securities Fraud Enforcement Act of 1988.18 When established, the maximum penalty amount for a violation of this provision was $1,000,000.

    18 Public Law 100-704, Sec. 3(a)(2), 102 Stat. 4677-4679 (1988). The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 authorized the Commission to impose civil penalties in cease-and-desist proceedings. See 15 U.S.C. 77h-1(g), 15 U.S.C. 78u-2(b), 15 U.S.C. 80a-9(d)(1)(B), 15 U.S.C. 80b-3(i)(1)(B). For the Securities Act, Congress provided this authority in a new section of that Act, whereas for the Exchange Act, the Investment Company Act, and the Investment Advisers Act, Congress cross-referenced pre-existing penalty amounts for administrative proceedings that were established in 1990. Therefore, for the purposes of applying the 2015 Act, the amounts of the penalties for cease-and-desist proceedings under the Securities Act were established in 2010 and the amounts of the penalties for cease-and-desist proceedings under the Exchange Act, the Investment Company Act, and the Investment Advisers Act were established in 1990.

    Step 2: The Commission multiplies the maximum penalty amount at the time the penalty amount was established or last adjusted by the CPI-U multiplier, representing the percentage change in the CPI-U from October in the year the penalty was established or last adjusted to October 2015, and rounds that number to the nearest dollar. Thus, we multiply $1,000,000 by the multiplier for 1988, 1.97869, to determine a new inflation-adjusted maximum CMP of $1,978,690.

    Step 3: The Commission identifies the maximum CMP for the penalty provision as of November 2, 2015, including adjustments made pursuant to the Inflation Adjustment Act. For Section 21A(a)(3), the maximum CMP was previously adjusted in 2013 pursuant to the Inflation Adjustment Act to $1,525,000.19

    19 17 CFR 201.1005, Table V.

    Step 4: The Commission multiplies the November 2, 2015 maximum CMP by 2.5 to determine what a 150 percent increase from the current penalty would be. This is the maximum increase in the CMP that can be made pursuant to the catch-up adjustment. For Section 21A(a)(3), a 150 percent increase from the current penalty would be $3,812,500.

    Step 5: The Commission compares the amount in Step 2 to the amount in Step 4. The lesser of these two amounts will be the new inflation-adjusted penalty amount. Because the adjusted penalty amount in Step 2, $1,978,690, is less than the maximum penalty allowed in Step 4, $3,812,500, the new inflation adjusted penalty amount for Section 21A(a)(3) is $1,978,690.20

    20 Almost all of the new inflation-adjusted penalty amounts listed below were obtained by multiplying the penalty amount in the year the penalty was established or last adjusted by the CPI-U multiplier. The only exception is the civil penalty for violations of Exchange Act Section 32(b), 15 U.S.C. 78ff(b), in which the inflation-adjusted penalty amount would have been greater than the maximum 150 percent increase allowed by the 2015 Act.

    III. The Commission Declines To Seek a Reduced Catch-Up Adjustment Determination

    The 2015 Act allows agencies, after obtaining concurrence from OMB, to adjust penalties pursuant to a reduced catch-up adjustment determination.21 In making such an adjustment, the agency must publish a notice of proposed rulemaking, provide an opportunity for comment, and determine in a final rule that a reduced catch-up adjustment determination is warranted because the otherwise required increase of a maximum penalty amount would have a negative economic impact, or because the social costs of the otherwise required adjustment would outweigh the benefits.22

    21 OMB has stated its expectation that it will only rarely concur with a proposal to reduce penalty amounts below that required by the 2015 Act. See OMB Guidance at 3.

    22 28 U.S.C. 2461 note Sec. 4(c); OMB Guidance at 3.

    We have concluded that such a reduced catch-up adjustment determination is not necessary and instead have adopted the adjustments prescribed by the 2015 Act. The increases envisioned by the 2015 Act ensure that the Commission's CMPs maintain their deterrent and remedial effect and prevent these desired effects from being diminished by inflation. We do not believe they will have a negative economic impact.23 Further, while the adjustments required by the 2015 Act do raise the maximum amounts of the Commission's CMPs, the percentage increases in the maximum amounts are generally consistent with previous inflation adjustments and the Commission and the courts always maintain the discretion to impose a lower penalty amount if the new maximum amount would be unjust or inappropriate in a particular case.

    23See infra Section VI for the Commission's Economic Analysis.

    IV. Request for Comment

    We request and encourage interested persons to submit comments on any aspect of this interim final rule, other matters that might have an impact on the rule, and any suggestions for additional changes. In particular, we invite comments on whether, contrary to the conclusion set forth above, the Commission should seek a reduced catch-up adjustment determination. Comments on this topic should address the statutory bases for requesting a reduced catch-up adjustment determination: (1) Whether the otherwise required increase of the maximum amount of the CMPs administered by the Commission would have a negative economic impact, or (2) whether the social costs of adopting the otherwise required increase of the maximum amount of these CMPs would outweigh the benefits. With respect to any such comments, they are of greatest assistance if accompanied by supporting data and analysis of the issues listed above.

    V. Procedural and Other Matters

    Given that the Commission is not seeking a reduced catch-up adjustment determination, the Commission is required by the 2015 Act to adjust the CMPs within its jurisdiction for inflation using a statutorily prescribed formula and the 2015 Act mandates that the initial catch-up adjustment be made through an interim final rule effective not later than August 1, 2016.24 In light of this Congressional mandate, the Commission finds that good cause exists to dispense with public notice and comment pursuant to the notice and comment provisions of the Administrative Procedure Act (“APA”).25 Under the Regulatory Flexibility Act (“RFA”), a regulatory flexibility analysis is required only when an agency must publish a general notice of proposed rulemaking.26 As noted above, public notice and comment is not required for this interim final rule; therefore, a regulatory flexibility analysis is not required. Further, this rule does not contain any collection of information requirements as defined by the Paperwork Reduction Act of 1995 as amended.27

    24 28 U.S.C. 2461 note Sec. 4(b)(1).

    25 5 U.S.C. 553(b)(3)(B). This finding also satisfies the requirements of 5 U.S.C. 808(2), allowing the amendment to become effective notwithstanding the requirement of 5 U.S.C. 801 (if a federal agency finds that notice and public comment are impractical, unnecessary or contrary to the public interest, a rule shall take effect at such time as the federal agency promulgating the rule determines).

    26 5 U.S.C. 603.

    27 44 U.S.C. 3501 et. seq.

    VI. Economic Analysis

    The Commission is sensitive to the costs and benefits that result from its rules. The baseline for this analysis is the statutory framework described above in Section I. In enacting the 2015 Act, Congress directed the Commission to adjust CMPs in accordance with inflation. The Commission notes that this regulation has no impact on disclosure or compliance costs. The Commission further notes that the CMPs ordered in SEC proceedings and PCAOB disciplinary proceedings in fiscal year 2015 totaled approximately $1,176 million. The inflationary adjustment required by the 2015 Act results in the increase of the maximum amount of the CMPs administered by the Commission of approximately 7.67% to 11.3%. Assuming that the Commission is successful in obtaining civil monetary penalties in fiscal years subsequent to the enactment of this regulation in similar proportion to that obtained in fiscal year 2015, the inflationary adjustment pursuant to the new regulation would result in an increase in the civil monetary penalties ordered of approximately $90.1 million to $132.9 million.

    This potential increase, however, overstates the effect of the rule. First, these figures represent the amount of penalties that could be potentially ordered, whereas the amount of penalties collected in any given year—the amount of penalties that would affect the economy—can be lower than the ordered amount. Second, penalties imposed in insider trading cases brought in district court are based on the profit gained or loss avoided as a result of the violation rather than by reference to a statutory dollar amount that is affected by this regulation.28 The average annual amount of penalties obtained in insider trading cases from FY 2010 through FY 2015 is $108.2 million. Third, in many cases where the Commission has obtained large civil monetary penalties, such penalties were calculated on the basis of the defendant's gross pecuniary gain rather than the maximum penalty dollar amount set by statute that will be adjusted by the proposed rule.29 In addition, the intent of the new regulation is merely to keep pace with changes in the economy, not to impose new costs. Therefore, for the instances in which CMPs affected by this rulemaking are imposed, the Commission does not believe that adjusting civil monetary penalties pursuant to the 2015 Act will significantly affect the amount of penalties it obtains beyond that necessary to keep pace with inflation.

    28 15 U.S.C. 78u-1(a)(2).

    29 For example, 15 U.S.C. 77t(d)(2)(A), after adjusting for inflation as required by the 2015 Act, provides that the amount of the penalty shall not exceed the greater of $8,908 for a natural person or $89,708 for any other person, or the gross amount of pecuniary gain to such defendant as a result of the violation.

    The benefit provided by the inflationary adjustment to the maximum civil monetary penalties is that of maintaining the level of deterrence effectuated by the civil monetary penalties, and not allowing such deterrent effect to be diminished by inflation. The costs of implementing this rule should be negligible because the only change from the current, baseline situation is determining potential penalties using a new maximum dollar amount.

    VII. Statutory Basis

    The Commission is adopting these revisions to 17 CFR part 201, subpart E pursuant to the directives and authority of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Public Law 114-74, 129 Stat. 599-601 (Nov. 2, 2015).

    List of Subjects in 17 CFR Part 201

    Administrative practice and procedure, Claims, Confidential business information, Lawyers, Penalties, Securities.

    Text of Amendment

    For the reasons set forth in the preamble, part 201, title 17, chapter II of the Code of Federal Regulations is amended by revising Subpart E as set forth below:

    PART 201—RULES OF PRACTICE Subpart E—Adjustment of Civil Monetary Penalties Sec. 201.1001 Adjustment of civil monetary penalties—2016. Table I to Subpart E of Part 201— Civil monetary penalty inflation adjustments. Authority:

    28 U.S.C. 2461 note.

    Subpart E—Adjustment of Civil Monetary Penalties
    § 201.1001 Adjustment of civil monetary penalties—2016.

    As required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, the maximum amounts of all civil monetary penalties under the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, and the Investment Advisers Act of 1940, and certain penalties under the Sarbanes-Oxley Act of 2002 are adjusted for inflation in accordance with Table I to this subpart E. The adjustments set forth in Table I to this subpart E apply to all penalties imposed after August 1, 2016, including to penalties imposed for violations that occur before August 1, 2016.

    Table I to Subpart E of Part 201—Civil Monetary Penalty Inflation Adjustments U.S. Code citation Civil monetary penalty description Year penalty amount was established or last adjusted * Maximum
  • penalty
  • amount when
  • established or last adjusted
  • Maximum
  • penalty
  • amount in
  • effect on
  • November 2, 2015
  • New adjusted maximum
  • penalty
  • amount
  • effective
  • August 1, 2016
  • Securities and Exchange Commission: 15 U.S.C. 77h-1(g) For natural person 2010 $7,500 $7,500 $8,156 For any other person 2010 75,000 80,000 81,559 For natural person/fraud 2010 75,000 80,000 81,559 For any other person/fraud 2010 375,000 400,000 407,794 For natural person/substantial losses or risk of losses to others or gains to self 2010 150,000 160,000 163,118 For any other person/substantial losses or risk of losses to others or gain to self 2010 725,000 775,000 788,401 15 U.S.C. 77t(d) For natural person 1990 5,000 7,500 8,908 For any other person 1990 50,000 80,000 89,078 For natural person/fraud 1990 50,000 80,000 89,078 For any other person/fraud 1990 250,000 400,000 445,390 For natural person/substantial losses or risk of losses to others 1990 100,000 160,000 178,156 For any other person/substantial losses or risk of losses to others 1990 500,000 775,000 890,780 15 U.S.C. 78ff(b) Exchange Act/failure to file information documents, reports 1936 100 210 525 15 U.S.C. 78ff(c)(1)(B) Foreign Corrupt Practices—any issuer 1988 10,000 16,000 19,787 15 U.S.C. 78ff(c)(2)(B) Foreign Corrupt Practices—any agent or stockholder acting on behalf of issuer 1988 10,000 16,000 19,787 15 U.S.C. 78u-1(a)(3) Insider Trading—controlling person 1988 1,000,000 1,525,000 1,978,690 15 U.S.C. 78u-2 For natural person 1990 5,000 7,500 8,908 For any other person 1990 50,000 80,000 89,078 For natural person/fraud 1990 50,000 80,000 89,078 For any other person/fraud 1990 250,000 400,000 445,390 For natural person/substantial losses or risk of losses to others or gains to self 1990 100,000 160,000 178,156 For any other person/substantial losses or risk of losses to others or gain to self 1990 500,000 775,000 890,780 15 U.S.C. 78u(d)(3) For natural person 1990 5,000 7,500 8,908 For any other person 1990 50,000 80,000 89,078 For natural person/fraud 1990 50,000 80,000 89,078 For any other person/fraud 1990 250,000 400,000 445,390 For natural person/substantial losses or risk of losses to others 1990 100,000 160,000 178,156 For any other person/substantial losses or risk of losses to others 1990 500,000 775,000 890,780 15 U.S.C. 80a-9(d) For natural person 1990 5,000 7,500 8,908 For any other person 1990 50,000 80,000 89,078 For natural person/fraud 1990 50,000 80,000 89,078 For any other person/fraud 1990 250,000 400,000 445,390 For natural person/substantial losses or risk of losses to others or gains to self 1990 100,000 160,000 178,156 For any other person/substantial losses or risk of losses to others or gain to self 1990 500,000 775,000 890,780 15 U.S.C. 80a-41(e) For natural person 1990 5,000 7,500 8,908 For any other person 1990 50,000 80,000 89,078 For natural person/fraud 1990 50,000 80,000 89,078 For any other person/fraud 1990 250,000 400,000 445,390 For natural person/substantial losses or risk of losses to others 1990 100,000 160,000 178,156 For any other person/substantial losses or risk of losses to others 1990 500,000 775,000 890,780 15 U.S.C. 80b-3(i) For natural person 1990 5,000 7,500 8,908 For any other person 1990 50,000 80,000 89,078 For natural person/fraud 1990 50,000 80,000 89,078 For any other person/fraud 1990 250,000 400,000 445,390 For natural person/substantial losses or risk of losses to others or gains to self 1990 100,000 160,000 178,156 For any other person/substantial losses or risk of losses to others or gain to self 1990 500,000 775,000 890,780 15 U.S.C. 80b-9(e) For natural person 1990 5,000 7,500 8,908 For any other person 1990 50,000 80,000 89,078 For natural person/fraud 1990 50,000 80,000 89,078 For any other person/fraud 1990 250,000 400,000 445,390 For natural person/substantial losses or risk of losses to others 1990 100,000 160,000 178,156 For any other person/substantial losses or risk of losses to others 1990 500,000 775,000 890,780 15 U.S.C. 7215(c)(4)(D)(i) For natural person 2002 100,000 130,000 131,185 For any other person 2002 2,000,000 2,525,000 2,623,700 15 U.S.C. 7215(c)(4)(D)(ii) For natural person 2002 750,000 950,000 983,888 For any other person 2002 15,000,000 18,925,000 19,677,750 * Adjustments include any revisions by Congress in statute, or by the agency through regulation, other than pursuant to the Inflation Adjustment Act.
    Dated: June 27, 2016.

    By the Commission.

    Brent J. Fields, Secretary.
    [FR Doc. 2016-15541 Filed 6-30-16; 8:45 am] BILLING CODE 8011-01-P
    SECURITIES AND EXCHANGE COMMISSION 17 CFR Part 232 [Release Nos. 33-10095; 34-78044; 39-2510; IC-32145] Adoption of Updated EDGAR Filer Manual AGENCY:

    Securities and Exchange Commission.

    ACTION:

    Final rule.

    SUMMARY:

    The Securities and Exchange Commission (the Commission) is adopting revisions to the Electronic Data Gathering, Analysis, and Retrieval System (EDGAR) Filer Manual and related rules to reflect updates to the EDGAR system. The updates are being made primarily to support the submission of asset-backed securities (ABS) related form types by registrants whose Standard Industrial Classification (SIC) code is not 6189; terminate support for the US-GAAP-2014, EXCH-2014, COUNTRY-2012, and CURRENCY-2012 taxonomies; and allow certain filers to use Inline XBRL in their Related Official Filing, provided that the structured information satisfies all other submission requirements. The EDGAR system is scheduled to be upgraded to support these functionalities on June 13, 2016.

    DATES:

    Effective July 1, 2016. The incorporation by reference of the EDGAR Filer Manual is approved by the Director of the Federal Register as of July 1, 2016.

    FOR FURTHER INFORMATION CONTACT:

    In the Division of Corporate Finance, for questions concerning Asset-Backed Securities related submission form types, contact Vik Sheth at (202) 551-3818; and in the Division of Economic and Risk Analysis, for questions concerning unsupported taxonomies and Inline XBRL, contact Walter Hamscher at (202) 551-5397.

    SUPPLEMENTARY INFORMATION:

    We are adopting an updated EDGAR Filer Manual, Volume II. The Filer Manual describes the technical formatting requirements for the preparation and submission of electronic filings through the EDGAR system.1 It also describes the requirements for filing using EDGARLink Online and the Online Forms/XML Web site.

    1 We originally adopted the Filer Manual on April 1, 1993, with an effective date of April 26, 1993. Release No. 33-6986 (April 1, 1993) [58 FR 18638]. We implemented the most recent update to the Filer Manual on April 25, 2016. See Release No. 33-10071 (May 19, 2016) [81 FR 31501].

    The revisions to the Filer Manual reflect changes within Volume II entitled EDGAR Filer Manual, Volume II: “EDGAR Filing,” Version 37 (June 2016). The updated manual will be incorporated by reference into the Code of Federal Regulations.

    The Filer Manual contains all the technical specifications for filers to submit filings using the EDGAR system. Filers must comply with the applicable provisions of the Filer Manual in order to assure the timely acceptance and processing of filings made in electronic format.2 Filers may consult the Filer Manual in conjunction with our rules governing mandated electronic filing when preparing documents for electronic submission.3

    2See Rule 301 of Regulation S-T (17 CFR 232.301).

    3See Release No. 33-10071 in which we implemented EDGAR Release 16.1. For additional history of Filer Manual rules, please see the cites therein.

    The EDGAR system will be upgraded to Release 16.2 on June 13, 2016 and will introduce the following changes:

    EDGAR will be updated to allow registrants whose Standard Industrial Classification (SIC) code is not 6189 (asset-backed securities) to file the following asset-backed securities related submission form types:

    • SF-1, SF-1/A, SF-3, SF-3/A, SF-3MEF, 424H, 424H/A, ABS-EE, ABS-EE/A, 8-K, 8-K/A, 10-D, and 10-D/A.

    The following fields will now be required for all filers submitting form types 10-D and 10-D/A and providing Item 6 or attaching an EX-36 on submission form types 8-K and 8-K/A, irrespective of the filer's SIC code:

    • Sponsor CIK • Depositor CIK • ABS Asset Class

    EDGAR will no longer provide support for the US-GAAP-2014, EXCH-2014, COUNTRY-2012, and CURRENCY-2012 taxonomies. Please see http://www.sec.gov/info/edgar/edgartaxonomies.shtml for a complete listing of supported standard taxonomies.

    Pursuant to a Commission exemptive order issued on June 13, 2016, certain filers will be able to use Inline XBRL in their Related Official Filing for a limited period of time until March of the year 2020, provided that the structured information satisfies all other submission requirements and conditions specified in the order are met. Inline XBRL is a file format permitting both HTML and Interactive Data tags. Instructions for formatting and attaching Inline XBRL documents to EDGAR submissions are described in a new subsection 5.2.5 of EDGAR Filer Manual, Volume II.

    Along with the adoption of the Filer Manual, we are amending Rule 301 of Regulation S-T to provide for the incorporation by reference into the Code of Federal Regulations of today's revisions. This incorporation by reference was approved by the Director of the Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR part 51.

    The updated EDGAR Filer Manual will be available for Web site viewing and printing; the address for the Filer Manual is http://www.sec.gov/info/edgar.shtml. You may also obtain paper copies of the EDGAR Filer Manual from the following address: Public Reference Room, U.S. Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m.

    Since the Filer Manual and the corresponding rule changes relate solely to agency procedures or practice, publication for notice and comment is not required under the Administrative Procedure Act (APA).4 It follows that the requirements of the Regulatory Flexibility Act 5 do not apply.

    4 5 U.S.C. 553(b).

    5 5 U.S.C. 601-612.

    The effective date for the updated Filer Manual and the rule amendments is July 1, 2016. In accordance with the APA,6 we find that there is good cause to establish an effective date less than 30 days after publication of these rules. The EDGAR system upgrade to Release 16.2 is scheduled to become available on June 13, 2016. The Commission believes that establishing an effective date less than 30 days after publication of these rules is necessary to coordinate the effectiveness of the updated Filer Manual with these system upgrades.

    6 5 U.S.C. 553(d)(3).

    Statutory Basis

    We are adopting the amendments to Regulation S-T under Sections 6, 7, 8, 10, and 19(a) of the Securities Act of 1933,7 Sections 3, 12, 13, 14, 15, 23, and 35A of the Securities Exchange Act of 1934,8 Section 319 of the Trust Indenture Act of 1939,9 and Sections 8, 30, 31, and 38 of the Investment Company Act of 1940.10

    7 15 U.S.C. 77f, 77g, 77h, 77j, and 77s(a).

    8 15 U.S.C. 78c, 78l, 78m, 78n, 78o, 78w, and 78ll.

    9 15 U.S.C. 77sss.

    10 15 U.S.C. 80a-8, 80a-29, 80a-30, and 80a-37.

    List of Subjects in 17 CFR Part 232

    Incorporation by reference, Reporting and recordkeeping requirements, Securities.

    Text of the Amendment

    In accordance with the foregoing, title 17, chapter II of the Code of Federal Regulations is amended as follows:

    PART 232—REGULATION S-T—GENERAL RULES AND REGULATIONS FOR ELECTRONIC FILINGS 1. The authority citation for part 232 continues to read in part as follows: Authority:

    15 U.S.C. 77f, 77g, 77h, 77j, 77s(a), 77z-3, 77sss(a), 78c(b), 78l, 78m, 78n, 78o(d), 78w(a), 78ll, 80a-6(c), 80a-8, 80a-29, 80a-30, 80a-37, and 7201 et seq.; and 18 U.S.C. 1350, unless otherwise noted.

    2. Section 232.301 is revised to read as follows:
    § 232.301 EDGAR Filer Manual.

    Filers must prepare electronic filings in the manner prescribed by the EDGAR Filer Manual, promulgated by the Commission, which sets out the technical formatting requirements for electronic submissions. The requirements for becoming an EDGAR Filer and updating company data are set forth in the updated EDGAR Filer Manual, Volume I: “General Information,” Version 24 (December 2015). The requirements for filing on EDGAR are set forth in the updated EDGAR Filer Manual, Volume II: “EDGAR Filing,” Version 37 (June 2016). Additional provisions applicable to Form N-SAR filers are set forth in the EDGAR Filer Manual, Volume III: “N-SAR Supplement,” Version 5 (September 2015). All of these provisions have been incorporated by reference into the Code of Federal Regulations, which action was approved by the Director of the Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. You must comply with these requirements in order for documents to be timely received and accepted. The EDGAR Filer Manual is available for Web site viewing and printing; the address for the Filer Manual is http://www.sec.gov/info/edgar.shtml. You can obtain paper copies of the EDGAR Filer Manual from the following address: Public Reference Room, U.S. Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. You can also inspect the document at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202-741-6030, or go to: http://www.archives.gov/federal_register/code_of_federal_regulations/ibr_locations.html.

    By the Commission.

    Dated: June 13, 2016. Brent J. Fields, Secretary.
    [FR Doc. 2016-15510 Filed 6-30-16; 8:45 am] BILLING CODE 8011-01-P
    SOCIAL SECURITY ADMINISTRATION 20 CFR Part 404 [Docket No. SSA-2006-0140] RIN 0960-AF35 Revised Medical Criteria for Evaluating Neurological Disorders AGENCY:

    Social Security Administration.

    ACTION:

    Final rule.

    SUMMARY:

    We are revising the criteria in the Listing of Impairments (listings) that we use to evaluate disability claims involving neurological disorders in adults and children under titles II and XVI of the Social Security Act (Act). These revisions reflect our program experience; advances in medical knowledge, treatment, and methods of evaluating neurological disorders; comments we received from medical experts and the public at an outreach policy conference; responses to an advance notice of proposed rulemaking (ANPRM); and public comments we received in response to a Notice of Proposed Rulemaking (NPRM) and a Federal Register notice that reopened the NPRM comment period.

    DATES:

    This rule is effective September 29, 2016.

    FOR FURTHER INFORMATION CONTACT:

    Cheryl A. Williams, Office of Disability Policy, Social Security Administration, 6401 Security Boulevard, Baltimore, Maryland 21235-6401, (410) 965-1020. For information on eligibility or filing for benefits, call our national toll-free number 1-800-772-1213, or TTY 1-800-325-0778, or visit our Internet site, Social Security Online, at http://www.socialsecurity.gov.

    SUPPLEMENTARY INFORMATION: Background

    We are making final the rule for evaluating neurological disorders that we proposed in an NPRM published in the Federal Register on February 25, 2014 (79 FR 10636). In the preamble to the NPRM, we discussed the revisions to our current rule for the neurological body system and our reasons for proposing those revisions. To the extent that we are adopting the proposed rule as published, we are not repeating that information here; interested readers may refer to the NPRM preamble. We incorporated into the final rule the portions of Social Security Ruling (SSR) 87-6, “Titles II and XVI: The Role of Prescribed Treatment in the Evaluation of Epilepsy” that continue to be relevant to the treatment of epilepsy. As part of the publication of this final rule, we are rescinding SSR 87-6. We also respond to public comments on the NPRM and explain what changes we are making based on those comments in the “Public Comments on the NPRM” section of the preamble.

    Why are we revising the listings for evaluating neurological disorders?

    We are comprehensively revising the listings for evaluating neurological disorders to update the medical criteria, provide additional methods of evaluating neurological disorders, provide more information on how we evaluate neurological disorders, make other changes that reflect our program experience, and address adjudicator questions. We last comprehensively revised the listings for the neurological disorders body system in a final rule published on December 6, 1985.1 We have made only a few changes since then to meet program purposes.2

    1 50 FR 50068.

    2 On December 12, 1990, we raised the IQ limit in 11.07A, 111.02B1, 111.07B1, and 111.08B2 from 69 to 70 (55 FR 51204). We published a final rule adding section 11.00F for traumatic brain injury on August 21, 2000 (65 FR 50746); made technical revisions to most of the body systems on April 24, 2002 (67 FR 20018), which included some changes to the neurological body system; revised listing 11.10 for Amyotrophic lateral sclerosis (ALS) on August 82, 2003 (68 FR 51689); moved the listings for malignant brain tumors to the body system for malignant neoplastic diseases on November 15, 2004 (69 FR 67018); and made a technical correction in listing 111.09 on March 24, 2011 (76 FR 16531).

    Summary of Public Comments on the NPRM

    In the NPRM, we provided the public with a 60-day comment period that ended on April 28, 2014. We reopened the comment period for 30 days on May 1, 2014 (70 FR 24634). The last of the two comment periods closed on June 2, 2014. We received and posted 2,103 public comments during the initial period for public comments on the NPRM, and received and posted an additional 921 when we extended the NPRM comment period. We also received and posted 55 comments when we initially made the public aware of our efforts to update this rule, when we published the ANPRM. The comments came from members of the public, medical professionals, national medical organizations, advocacy groups, disability examiners and other adjudicators, and a national association representing disability examiners in the State agencies that make disability determinations for us.

    The majority of the comments was repetitive and expressed support of or agreement with identical recommendations submitted by a few national organizations. For example, we received just over 1,100 comments that repeated, or were in support of recommendations submitted by a few Huntington's disease organizations; approximately 800 comments that repeated, or were in support of recommendations submitted by various headache organizations; and approximately 350 repeat comments that were in support of recommendations from various Parkinson's disease organizations.

    In general, the recommendations and concerns raised by the majority of public commenters were very similar or identical. We received several comments suggesting that we create separate listings for various neurological disorders that we address in one comment below. Some commenters noted provisions with which they agreed and did not make suggestions for changes in those provisions. For example, over 300 comments were testimonials from commenters sharing their personal experience with various neurological disorders. Approximately 300 comments were outside the scope of the neurological NPRM, several of those were relevant to other body system disorders; we shared those comments with the appropriate body systems policy teams for consideration. We did not summarize or respond to comments that were in agreement with, or outside the scope of the neurological NPRM. We addressed repetitive comments that raised identical issues as one comment.

    We carefully considered all of the relevant comments we received and we responded to all of the significant issues raised by the commenters that were within the scope of this rule. We provide our reasons for adopting or not adopting the comment recommendations in our responses below.

    General Comments

    Comment: Several commenters suggested that we create separate listings for various neurological disorders, such as migraine, cluster headaches and other severe headache disorders, fetal alcohol syndrome, cervical dystonias, atypical facial pain, and trigeminal neuralgia. One commenter expressed opposition to creating a separate listing for migraine headaches because the symptoms are too subjective. Other commenters suggested adding several neurological disorders to specific listings.

    Response: We did not adopt these comments. While we do not have listings for every neurological condition, we are able to evaluate unlisted neurological disorders in several ways under our sequential evaluation process. We will determine whether your impairment medically equals a listing. If your impairment does not medically equal the criteria of a listing, you may or may not have the residual functional capacity to perform your past relevant work or adjust to other work that exists in significant numbers in the national economy, which we determine at the fourth and, if necessary, the fifth steps of the sequential evaluation process. As we work on the next iteration of revisions to the neurological rule, we will consider the suggestions for adding new listings and will consider comments expressing opposition to adding certain new listings.

    Comment: We received a number of comments related to how we evaluate migraines and other chronic headache disorders. As we mentioned in the previous comment, several commenters asked that we recognize migraines as a disabling impairment and suggested we create a specific listing. Other commenters suggested listing criteria for us to consider. One commenter raised concerns about evaluating chronic headache disorders because of the subjective nature of the disorders.

    Response: We acknowledge the commenters' concerns. We realize it is appropriate to provide impairment-specific guidance on how we evaluate migraines and other chronic headache disorders. We will address these concerns in training to ensure all adjudicators know how to establish migraine and other chronic headache disorders as medically determinable impairments (MDIs). Once we establish the existence of an MDI(s), we follow the remaining steps in the sequential evaluation process (See §§ 404.1520, 416.920, and 416.924). As noted in the response above to the comments about creating additional listings, we are able to evaluate unlisted neurological disorders in several ways under our sequential evaluation process.

    Comment: We received several comments expressing concern that the proposed functional criteria for determining disability in individuals with Huntington's disease (HD) and Parkinson's disease still rely on the presence of physical limitations and do not adequately address the common non-physical manifestations of these diseases. The commenters suggested we include the mental criteria from the mental body system in the neurological disorders body system to evaluate the mental aspects of neurological disorders in the absence of physical limitations commonly seen in HD and in Parkinson's disease. They indicated the proposed criteria should include criteria specific to mental functioning in order to address the full range of symptoms often experienced by people who suffer with HD and Parkinson's disease. The commenters also suggested that the proposed introductory text sections where we discuss HD and Parkinson's disease direct adjudicators beyond listing 12.02 to expand to the entire mental body system, as appropriate, when they need to evaluate mental symptoms associated with neurological disorders.

    Response: We partially adopted this comment. For program purposes, we consider all impairments under all applicable body systems as part of our disability evaluation. In the listings, we describe each of the major body systems impairments we consider severe enough to be disabling, and we list requirements that demonstrate a level of severity and duration consistent with the definition of disability set by Congress under the Act. We evaluate the person's impairment(s) under the most appropriate body system(s). We recognize that neurological disorders may co-occur with impairments we evaluate in other body systems; however, we intend the listings in this final rule to address only neurological disorders and the complications from those disorders. When only mental aspects of neurological disorders are present in the absence of physical limitations commonly seen in HD and Parkinson's disease, we evaluate those limitations under the appropriate mental disorders body system listings. However, when mental aspects of neurological disorders are present and co-occur with the physical limitations of these disorders, we evaluate limitations in physical and mental functioning under the neurological listings. In response to this and similar comments, we provided additional guidance in the introductory text explaining how we evaluate mental disorders under these listings.

    We modified our functional criteria and severity rating scale to address the common mental aspects of neurological disorders. Our intent in the new functional criteria for adults is to provide a way to evaluate impairments and determine disability appropriately, even when those impairments are difficult to evaluate based on medical criteria alone. With functional criteria, we can evaluate the functional impact associated with any neurological impairment in broad areas of physical and mental functioning. The four areas of mental functioning are understanding, remembering, or applying information; interacting with others; concentrating, persisting, or maintaining pace; and adapting or managing oneself. For example, a person with a neurological disorder may demonstrate a limitation in the ability to walk (as addressed under the physical functioning criterion). He or she may also have a mental impairment resulting from the neurological disorder, which is demonstrated by a limitation in the ability to concentrate.

    Comment: A commenter stated that the definition of social functioning in proposed section 11.00G3 should not focus solely on limitations caused by physical ailments. The commenter suggested that the social functioning criteria should include interpersonal interactions, as well as non-physical symptoms such as irritability, aggression, and perseveration.

    Response: We adopted this comment. We mentioned in the previous comment we modified our functional criteria to focus on the common mental aspects of neurological disorders. We also changed the criterion from “social functioning” to “interacting with others” to be consistent with the way mental functions are described in the Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition. 3

    3 American Psychiatric Association: Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, Arlington, VA, American Psychiatric Association, 2013.

    Comment: Several commenters noted that proposed section 11.00C states, “Medical research shows that these neurological conditions may improve after a period of treatment.” The commenters pointed out this statement is false and we should correct it because Parkinson's disease never improves.

    Response: We adopted this comment. It was not our intent to indicate in listing 11.06 that Parkinson's disease itself may improve with treatment, as the disease is progressive. We removed the statement.

    Comment: Several commenters asked that we revise proposed section 11.00K to clarify that motor and non-motor symptoms can be equally disabling in Parkinsonian syndromes, and to reflect that symptoms can fluctuate significantly from hour to hour and minute to minute, often making job performance in a professional environment very difficult.

    Response: We partially adopted this comment. We agree that non-motor symptoms can be as disabling as motor symptoms in Parkinsonian syndromes. However, limitations resulting from non-motor symptoms are highly variable and we evaluate them on a case-by-case basis. The new functional criteria enable adjudicators to evaluate non-motor symptoms associated with Parkinsonian syndromes under listing 11.06B. We mention that neurological disorders may manifest in a combination of limitations in physical and mental functioning in the adult section, 11.00G. We will also provide guidance in training to adjudicators about the variable manifestations of neurological disorders, such as Parkinsonian syndrome.

    Comment: One commenter expressed disappointment that the revised epilepsy listing does not include any discussion of how to “deal with claimants who suffer from a mix of tonic-clonic and dyscognitive seizures.” The commenter stated that “although the revised listing explicitly acknowledges that individuals may suffer from a mix of tonic-clonic and dyscognitive seizures,4 there is no guidance as to how to evaluate a claimant experiencing both types of seizures.”

    4 See NPRM 11.00H(4)(c).

    Response: We do not agree with the commenter. In section 11.00H4c, we provide guidance on how to count dyscognitive seizures that progress into generalized tonic-clonic seizures. However, we do not believe that it is possible to address every permutation of the dyscognitive and tonic-clonic mixed seizure types. The signs and symptoms of such seizure types will vary from person to person. Adjudicators evaluate limitations caused by mixed seizures on a case-by-case basis.

    Comment: One commenter was pleased that we included a more detailed explanation for the term “marked” in 11.00G2 but was concerned that this definition relied on the term “seriously,” as in “interfere seriously” and “seriously limit,” which we did not define. This commenter believed that not defining the term “seriously,” while repeatedly relying on it to define the term “marked,” creates a significant ambiguity in the listings. The commenter was concerned that adjudicators will apply the term “marked” inconsistently unless we include a definition for the term “seriously.”

    Response: We partially adopted this comment. In the modified final section 11.00D of the introductory text, we include criteria for how to establish disorganization of motor function, descriptions for how to evaluate those criteria, and a definition of an extreme limitation in disorganization of motor function. If we do not find that a person is disabled on the basis of disorganization of motor function alone, as explained in 11.00D, we will find that the person's neurological disorder is incompatible with the ability to do any gainful activity if it results in marked limitation in physical functioning and marked limitation in one of four areas of mental functioning. In the modified final section 11.00G of the introductory text, we provide definitions for marked limitations drawn from our currently used definitions in section 7.00G4 of the listing of impairments for hematological disorders and section 1.00B of the listing of impairments for musculoskeletal disorders. We also provide descriptions of the considerations for physical and mental functioning in 11.00G2 and 11.00G3.

    Comment: One commenter suggested that we not remove the intelligence quotient (IQ) requirement from the neurological listings, as the commenter believes it is the best indicator of mental capability.

    Response: We did not adopt this comment. As we explained in the preamble to the NPRM, we are removing the criterion of an IQ score from our neurological listings because advances in medical knowledge of cerebral palsy (for adults and children), epilepsy (for children), spinal cord insults (for children), and our program experience indicate that an IQ score does not provide the best measure of limitations in cognitive functioning associated with these disorders. Therefore, it may not indicate listing-level severity under the neurological listings and would be more appropriately used to evaluate mental disorders under our mental disorders body system.

    Comment: One commenter expressed that scales rating function into categories such as “mild,” “moderate,” and “severe,” are clearly subjective on the part of the rater and their meaningfulness is questionable.

    Response: The word “severe” in the disability program separates step 2 from step 3 in the sequential evaluation process that we use to evaluate a person's physical or mental impairment or combination of impairments. If we find at step 2 that a person does not have a “severe” medically determinable impairment (MDI) or combination of MDIs that meet the duration requirement, we will find the person is not disabled. If we find at step 2 that the person has a “severe” MDI or combination of MDIs, we will continue evaluating the impairment(s) at step 3 of the sequential evaluation process. (See §§ 404.1520(a), 416.920(a) and 416.924(a).) With respect to the terms, “mild” and “moderate,” we have used those terms in a five-point rating scale in the mental disorders body system (consisting of none, mild, moderate, marked, and extreme) since 1985 (§§ 404.1520a and 416.920a). We have also used the terms “marked” and “extreme” limitation in childhood functional equivalence policy (§§ 416.926a). Such scales and ratings continue to be standard medical practice, and continue to be effective for evaluating degrees of impairment-related limitation(s). Moreover, in the modified final introductory text (11.00D2, 11.00G2, and 11.02D2), we include guidance for our adjudicators on the meaning and use of these terms.

    Comment: One commenter said a significant feature of the proposed new criteria is that we will presume individuals (with many different neurological disorders) are disabled if they are unable to stand from a sitting position and are not presently working. The commenter noted that it appears obvious from casual observation that many individuals successfully work in a wide variety of different sedentary positions, such as Wal-Mart greeter, office worker, and physician. Because significant numbers of these individuals work on a regular basis in the national economy, it is quite easy for a lay observer to think it inappropriate for the Social Security Administration to presume that all individuals unable to stand are also unable to work.

    Response: We did not adopt this comment. As we explain in 11.00D2a, an inability to stand up from a seated position means that, once seated, you are unable to stand and maintain an upright position without the risk of falling unless you have the assistance of another person or the use of an assistive device, such as a walker, two crutches, or two canes. The severity of such a limitation is set at a standard much higher than that applicable to a person who is able to do sedentary work; it thereby constitutes an inability to do any gainful activity in the national economy.

    Comment: One commenter suggested that when referring to spinal cord insults we use the term “spinal cord disorders” instead of “spinal cord insults.”

    Response: We agree with the commenter and adopted this comment.

    Comment: Some commenters asked how we would evaluate adherence to prescribed treatment for epilepsy patients when we removed the requirement for serum drug levels, particularly for patients prescribed newer antiepileptic drugs.

    Response: We describe how we consider adherence to prescribed treatment under 11.00C. We consider whether you have taken medications or followed other treatment procedures as prescribed by a physician for three consecutive months. We no longer require serum drug levels. When we last revised the listings in 1985, blood drug levels were strong indicators for prescribed treatment compliance because therapeutic ranges had been established for antiepileptic drugs (AEDs) and the ranges were often noted on laboratory results. Many newer AEDs do not have established therapeutic levels, which makes lab results difficult for our adjudicators to interpret. We removed the requirement for obtaining blood drug levels to address this adjudicative issue and to simplify evaluation of seizures that satisfy the listing criteria. However, we will continue to consider blood drug levels available in the evidence in the context of all evidence in the case record.

    What is our authority to make rules and set procedures for determining whether a person is disabled under the statutory definition?

    The Act authorizes us to make rules and regulations and to establish necessary and appropriate procedures to implement them.5

    5 42 U.S.C. 405(a), 902(a)(5), and 1383(d)(1).

    When will we begin to use this final rule?

    We will begin to use this final rule on its effective date. We will continue to use the current listings until the date the final rule becomes effective. We will apply the final rule to new applications filed on or after the effective date of the final rule and to claims that are pending on or after the effective date.6

    6 This means that we will use the final rule on and after their effective date in any case in which we make a determination or decision. We expect that Federal courts will review the Commissioner's final decisions using the rule that were in effect at the time we issued the decisions. If a court reverses the Commissioner's final decision and remands a case for further administrative proceedings after the effective date of the final rule, we will apply the final rule to the entire period at issue in the decision we make after the court's remand.

    How long will this final rule be effective?

    This final rule will remain in effect for 5 years after the date it becomes effective, unless we extend it, or revise and issue it again.

    Regulatory Procedures Executive Order 12866, as Supplemented by Executive Order 13563

    We consulted with the Office of Management and Budget (OMB) and determined that this final rule meets the criteria for a significant regulatory action under Executive Order 12866, as supplemented by Executive Order 13563. Therefore, OMB reviewed it.

    Regulatory Flexibility Act

    We certify that this final rule will not have a significant economic impact on a substantial number of small entities because it affects only individuals. Therefore, the Regulatory Flexibility Act, as amended, does not require us to prepare a regulatory flexibility analysis.

    Paperwork Reduction Act

    These rules do not create any new or affect any existing collections and, therefore, do not require OMB approval under the Paperwork Reduction Act.

    (Catalog of Federal Domestic Assistance Program Nos. 96.001, Social Security—Disability Insurance; 96.002, Social Security— Retirement Insurance; 96.004, Social Security—Survivors Insurance; and 96.006, Supplemental Security Income). List of Subjects in 20 CFR Part 404

    Administrative practice and procedure, Blind, Disability benefits, Old-age, Survivors, and Disability Insurance, Reporting and recordkeeping requirements, Social Security.

    Carolyn W. Colvin, Acting Commissioner of Social Security.

    For the reasons set out in the preamble, we are amending 20 CFR part 404, subpart P as set forth below:

    PART 404—FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE (1950-) Subpart P—Determining Disability and Blindness 1. The authority citation for subpart P of part 404 continues to read as follows: Authority:

    Secs. 202, 205(a)-(b) and (d)-(h), 216(i), 221(a), (i), and (j), 222(c), 223, 225, and 702(a)(5) of the Social Security Act (42 U.S.C. 402, 405(a)-(b) and (d)-(h), 416(i), 421(a), (i), and (j), 422(c), 423, 425, and 902(a)(5)); sec. 211(b), Pub. L. 104-193, 110 Stat. 2105, 2189; sec. 202, Pub. L. 108-203, 118 Stat. 509 (42 U.S.C. 902 note).

    2. Amend appendix 1 to subpart P of part 404 as follows: a. Revise item 12 of the introductory text before part A; b. Amend part A by revising the body system name for section 11.00 in the table of contents; c. In section 1.00 of part A, revise the introduction to paragraph K; d. Revise section 11.00 of part A; e. In section 12.00 of part A, revise paragraph D10, listing 12.01, listing 12.09E, and listing 12.09I; f. Amend part B by revising the body system name for section 111.00 in the table of contents; g. In section 101.00 of part B, revise the last sentence of paragraph B1; h. In section 101.00 of part B, revise the last sentence of paragraph B1 and paragraph K; and i. Revise section 111.00 of part B to read as follows: APPENDIX 1 TO SUBPART P OF PART 404—LISTING OF IMPAIRMENTS

    12. Neurological Disorders (11.00 and 111.00): September 29, 2021.

    Part A

    11.00 Neurological Disorders

    1.00 Musculoskeletal System

    K. Disorders of the spine, listed in 1.04, result in limitations because of distortion of the bony and ligamentous architecture of the spine and associated impingement on nerve roots (including the cauda equina) or spinal cord. Such impingement on nerve tissue may result from a herniated nucleus pulposus, spinal stenosis, arachnoiditis, or other miscellaneous conditions.

    11.00 NEUROLOGICAL DISORDERS

    A. Which neurological disorders do we evaluate under these listings? We evaluate epilepsy, amyotrophic lateral sclerosis, coma or persistent vegetative state (PVS), and neurological disorders that cause disorganization of motor function, bulbar and neuromuscular dysfunction, communication impairment, or a combination of limitations in physical and mental functioning. We evaluate neurological disorders that may manifest in a combination of limitations in physical and mental functioning. For example, if you have a neurological disorder that causes mental limitations, such as Huntington's disease or early-onset Alzheimer's disease, which may limit executive functioning (e.g., regulating attention, planning, inhibiting responses, decision-making), we evaluate your limitations using the functional criteria under these listings (see 11.00G). Under this body system, we evaluate the limitations resulting from the impact of the neurological disease process itself. If your neurological disorder results in only mental impairment or if you have a co-occurring mental condition that is not caused by your neurological disorder (for example, dementia), we will evaluate your mental impairment under the mental disorders body system, 12.00.

    B. What evidence do we need to document your neurological disorder?

    1. We need both medical and non-medical evidence (signs, symptoms, and laboratory findings) to assess the effects of your neurological disorder. Medical evidence should include your medical history, examination findings, relevant laboratory tests, and the results of imaging. Imaging refers to medical imaging techniques, such as x-ray, computerized tomography (CT), magnetic resonance imaging (MRI), and electroencephalography (EEG). The imaging must be consistent with the prevailing state of medical knowledge and clinical practice as the proper technique to support the evaluation of the disorder. In addition, the medical evidence may include descriptions of any prescribed treatment and your response to it. We consider non-medical evidence such as statements you or others make about your impairments, your restrictions, your daily activities, or your efforts to work.

    2. We will make every reasonable effort to obtain the results of your laboratory and imaging evidence. When the results of any of these tests are part of the existing evidence in your case record, we will evaluate the test results and all other relevant evidence. We will not purchase imaging, or other diagnostic tests, or laboratory tests that are complex, may involve significant risk, or that are invasive. We will not routinely purchase tests that are expensive or not readily available.

    C. How do we consider adherence to prescribed treatment in neurological disorders? In 11.02 (Epilepsy), 11.06 (Parkinsonian syndrome), and 11.12 (Myasthenia gravis), we require that limitations from these neurological disorders exist despite adherence to prescribed treatment. “Despite adherence to prescribed treatment” means that you have taken medication(s) or followed other treatment procedures for your neurological disorder(s) as prescribed by a physician for three consecutive months but your impairment continues to meet the other listing requirements despite this treatment. You may receive your treatment at a health care facility that you visit regularly, even if you do not see the same physician on each visit.

    D. What do we mean by disorganization of motor function?

    1. Disorganization of motor function means interference, due to your neurological disorder, with movement of two extremities; i.e., the lower extremities, or upper extremities (including fingers, wrists, hands, arms, and shoulders). By two extremities we mean both lower extremities, or both upper extremities, or one upper extremity and one lower extremity. All listings in this body system, except for 11.02 (Epilepsy), 11.10 (Amyotrophic lateral sclerosis), and 11.20 (Coma and persistent vegetative state), include criteria for disorganization of motor function that results in an extreme limitation in your ability to:

    a. Stand up from a seated position; or

    b. Balance while standing or walking; or

    c. Use the upper extremities (including fingers, wrists, hands, arms, and shoulders).

    2. Extreme limitation means the inability to stand up from a seated position, maintain balance in a standing position and while walking, or use your upper extremities to independently initiate, sustain, and complete work-related activities. The assessment of motor function depends on the degree of interference with standing up; balancing while standing or walking; or using the upper extremities (including fingers, hands, arms, and shoulders).

    a. Inability to stand up from a seated position means that once seated you are unable to stand and maintain an upright position without the assistance of another person or the use of an assistive device, such as a walker, two crutches, or two canes.

    b. Inability to maintain balance in a standing position means that you are unable to maintain an upright position while standing or walking without the assistance of another person or an assistive device, such as a walker, two crutches, or two canes.

    c. Inability to use your upper extremities means that you have a loss of function of both upper extremities (including fingers, wrists, hands, arms, and shoulders) that very seriously limits your ability to independently initiate, sustain, and complete work-related activities involving fine and gross motor movements. Inability to perform fine and gross motor movements could include not being able to pinch, manipulate, and use your fingers; or not being able to use your hands, arms, and shoulders to perform gross motor movements, such as handling, gripping, grasping, holding, turning, and reaching; or not being able to engage in exertional movements such a lifting, carrying, pushing, and pulling.

    E. How do we evaluate communication impairments under these listings? We must have a description of a recent comprehensive evaluation including all areas of communication, performed by an acceptable medical source, to document a communication impairment associated with a neurological disorder. A communication impairment may occur when a medically determinable neurological impairment results in dysfunction in the parts of the brain responsible for speech and language. We evaluate communication impairments associated with neurological disorders under 11.04A, 11.07C, or 11.11B. We evaluate communication impairments due to non-neurological disorders under 2.09.

    1. Under 11.04A, we need evidence documenting that your central nervous system vascular accident or insult (CVA) and sensory or motor aphasia have resulted in ineffective speech or communication. Ineffective speech or communication means there is an extreme limitation in your ability to understand or convey your message in simple spoken language resulting in your inability to demonstrate basic communication skills, such as following one-step commands or telling someone about your basic personal needs without assistance.

    2. Under 11.07C, we need evidence documenting that your cerebral palsy has resulted in significant interference in your ability to speak, hear, or see. We will find you have “significant interference” in your ability to speak, hear, or see if your signs, such as aphasia, strabismus, or sensorineural hearing loss, seriously limit your ability to communicate on a sustained basis.

    3. Under 11.11B, we need evidence documenting that your post-polio syndrome has resulted in the inability to produce intelligible speech.

    F. What do we mean by bulbar and neuromuscular dysfunction? The bulbar region of the brain is responsible for controlling the bulbar muscles in the throat, tongue, jaw, and face. Bulbar and neuromuscular dysfunction refers to weakness in these muscles, resulting in breathing, swallowing, and speaking impairments. Listings 11.11 (Post-polio syndrome), 11.12 (Myasthenia gravis), and 11.22 (Motor neuron disorders other than ALS) include criteria for evaluating bulbar and neuromuscular dysfunction. If your neurological disorder has resulted in a breathing disorder, we may evaluate that condition under the respiratory system, 3.00.

    G. How do we evaluate limitations in physical and mental functioning under these listings?

    1. Neurological disorders may manifest in a combination of limitations in physical and mental functioning. We consider all relevant information in your case record to determine the effects of your neurological disorder on your physical and mental functioning. To satisfy the requirement described under 11.00G, your neurological disorder must result in a marked limitation in physical functioning and a marked limitation in at least one of four areas of mental functioning: Understanding, remembering, or applying information; interacting with others; concentrating, persisting, or maintaining pace; or adapting or managing oneself. If your neurological disorder results in an extreme limitation in at least one of the four areas of mental functioning, or results in marked limitation in at least two of the four areas of mental functioning, but you do not have at least a marked limitation in your physical functioning, we will consider whether your condition meets or medically equals one of the mental disorders body system listings, 12.00.

    2. Marked Limitation. To satisfy the requirements of the functional criteria, your neurological disorder must result in a marked limitation in physical functioning and a marked limitation in one of the four areas of mental functioning (see 11.00G3). Although we do not require the use of such a scale, “marked” would be the fourth point on a five-point scale consisting of no limitation, mild limitation, moderate limitation, marked limitation, and extreme limitation. We consider the nature and overall degree of interference with your functioning. The term “marked” does not require that you must be confined to bed, hospitalized, or in a nursing home.

    a. Marked limitation and physical functioning. For this criterion, a marked limitation means that, due to the signs and symptoms of your neurological disorder, you are seriously limited in the ability to independently initiate, sustain, and complete work-related physical activities (see 11.00G3). You may have a marked limitation in your physical functioning when your neurological disease process causes persistent or intermittent symptoms that affect your abilities to independently initiate, sustain, and complete work-related activities, such as standing, balancing, walking, using both upper extremities for fine and gross movements, or results in limitations in using one upper and one lower extremity. The persistent and intermittent symptoms must result in a serious limitation in your ability to do a task or activity on a sustained basis. We do not define “marked” by a specific number of different physical activities or tasks that demonstrate your ability, but by the overall effects of your neurological symptoms on your ability to perform such physical activities on a consistent and sustained basis. You need not be totally precluded from performing a function or activity to have a marked limitation, as long as the degree of limitation seriously limits your ability to independently initiate, sustain, and complete work-related physical activities.

    b. Marked limitation and mental functioning. For this criterion, a marked limitation means that, due to the signs and symptoms of your neurological disorder, you are seriously limited in the ability to function independently, appropriately, effectively, and on a sustained basis in work settings (see 11.03G3). We do not define “marked” by a specific number of mental activities, such as: The number of activities that demonstrate your ability to understand, remember, and apply information; the number of tasks that demonstrate your ability to interact with others; a specific number of tasks that demonstrate you are able to concentrate, persist or maintain pace; or a specific number of tasks that demonstrate you are able to manage yourself. You may have a marked limitation in your mental functioning when several activities or functions are impaired, or even when only one is impaired. You need not be totally precluded from performing an activity to have a marked limitation, as long as the degree of limitation seriously limits your ability to function independently, appropriately, and effectively on a sustained basis, and complete work-related mental activities.

    3. Areas of physical and mental functioning.

    a. Physical functioning. Examples of this criterion include specific motor abilities, such as independently initiating, sustaining, and completing the following activities: Standing up from a seated position, balancing while standing or walking, or using both your upper extremities for fine and gross movements (see 11.00D). Physical functioning may also include functions of the body that support motor abilities, such as the abilities to see, breathe, and swallow (see 11.00E and 11.00F). Examples of when your limitation in seeing, breathing, or swallowing may, on its own, rise to a “marked” limitation include: Prolonged and uncorrectable double vision causing difficulty with balance; prolonged difficulty breathing requiring the use of a prescribed assistive breathing device, such as a portable continuous positive airway pressure machine; or repeated instances, occurring at least weekly, of aspiration without causing aspiration pneumonia. Alternatively, you may have a combination of limitations due to your neurological disorder that together rise to a “marked” limitation in physical functioning. We may also find that you have a “marked” limitation in this area if, for example, your symptoms, such as pain or fatigue (see 11.00T), as documented in your medical record, and caused by your neurological disorder or its treatment, seriously limit your ability to independently initiate, sustain, and complete these work-related motor functions, or the other physical functions or physiological processes that support those motor functions. We may also find you seriously limited in an area if, while you retain some ability to perform the function, you are unable to do so consistently and on a sustained basis. The limitation in your physical functioning must last or be expected to last at least 12 months. These examples illustrate the nature of physical functioning. We do not require documentation of all of the examples.

    b. Mental functioning.

    (i) Understanding, remembering, or applying information. This area of mental functioning refers to the abilities to learn, recall, and use information to perform work activities. Examples include: Understanding and learning terms, instructions, procedures; following one- or two-step oral instructions to carry out a task; describing work activity to someone else; asking and answering questions and providing explanations; recognizing a mistake and correcting it; identifying and solving problems; sequencing multi-step activities; and using reason and judgment to make work-related decisions. These examples illustrate the nature of this area of mental functioning. We do not require documentation of all of the examples.

    (ii) Interacting with others. This area of mental functioning refers to the abilities to relate to and work with supervisors, co-workers, and the public. Examples include: Cooperating with others; asking for help when needed; handling conflicts with others; stating your own point of view; initiating or sustaining conversation; understanding and responding to social cues (physical, verbal, emotional); responding to requests, suggestions, criticism, correction, and challenges; and keeping social interactions free of excessive irritability, sensitivity, argumentativeness, or suspiciousness. These examples illustrate the nature of this area of mental functioning. We do not require documentation of all of the examples.

    (iii) Concentrating, persisting, or maintaining pace. This area of mental functioning refers to the abilities to focus attention on work activities and to stay on-task at a sustained rate. Examples include: Initiating and performing a task that you understand and know how to do; working at an appropriate and consistent pace; completing tasks in a timely manner; ignoring or avoiding distractions while working; changing activities or work settings without being disruptive; working close to or with others without interrupting or distracting them; sustaining an ordinary routine and regular attendance at work; and working a full day without needing more than the allotted number or length of rest periods during the day. These examples illustrate the nature of this area of mental functioning. We do not require documentation of all of the examples.

    (iv) Adapting or managing oneself. This area of mental functioning refers to the abilities to regulate emotions, control behavior, and maintain well-being in a work setting. Examples include: Responding to demands; adapting to changes; managing your psychologically based symptoms; distinguishing between acceptable and unacceptable work performance; setting realistic goals; making plans for yourself independently of others; maintaining personal hygiene and attire appropriate to a work setting; and being aware of normal hazards and taking appropriate precautions. These examples illustrate the nature of this area of mental functioning. We do not require documentation of all of the examples.

    4. Signs and symptoms of your disorder and the effects of treatment.

    a. We will consider your signs and symptoms and how they affect your ability to function in the work place. When we evaluate your functioning, we will consider whether your signs and symptoms are persistent or intermittent, how frequently they occur and how long they last, their intensity, and whether you have periods of exacerbation and remission.

    b. We will consider the effectiveness of treatment in improving the signs, symptoms, and laboratory findings related to your neurological disorder, as well as any aspects of treatment that may interfere with your ability to function. We will consider, for example: The effects of medications you take (including side effects); the time-limited efficacy of some medications; the intrusiveness, complexity, and duration of your treatment (for example, the dosing schedule or need for injections); the effects of treatment, including medications, therapy, and surgery, on your functioning; the variability of your response to treatment; and any drug interactions.

    H. What is epilepsy, and how do we evaluate it under 11.02?

    1. Epilepsy is a pattern of recurrent and unprovoked seizures that are manifestations of abnormal electrical activity in the brain. There are various types of generalized and “focal” or partial seizures. However, psychogenic nonepileptic seizures and pseudoseizures are not epileptic seizures for the purpose of 11.02. We evaluate psychogenic seizures and pseudoseizures under the mental disorders body system, 12.00. In adults, the most common potentially disabling seizure types are generalized tonic-clonic seizures and dyscognitive seizures (formerly complex partial seizures).

    a. Generalized tonic-clonic seizures are characterized by loss of consciousness accompanied by a tonic phase (sudden muscle tensing causing the person to lose postural control) followed by a clonic phase (rapid cycles of muscle contraction and relaxation, also called convulsions). Tongue biting and incontinence may occur during generalized tonic-clonic seizures, and injuries may result from falling.

    b. Dyscognitive seizures are characterized by alteration of consciousness without convulsions or loss of muscle control. During the seizure, blank staring, change of facial expression, and automatisms (such as lip smacking, chewing or swallowing, or repetitive simple actions, such as gestures or verbal utterances) may occur. During its course, a dyscognitive seizure may progress into a generalized tonic-clonic seizure (see 11.00H1a).

    2. Description of seizure. We require at least one detailed description of your seizures from someone, preferably a medical professional, who has observed at least one of your typical seizures. If you experience more than one type of seizure, we require a description of each type.

    3. Serum drug levels. We do not require serum drug levels; therefore, we will not purchase them. However, if serum drug levels are available in your medical records, we will evaluate them in the context of the other evidence in your case record.

    4. Counting seizures. The period specified in 11.02A, B, or C cannot begin earlier than one month after you began prescribed treatment. The required number of seizures must occur within the period we are considering in connection with your application or continuing disability review. When we evaluate the frequency of your seizures, we also consider your adherence to prescribed treatment (see 11.00C). When we determine the number of seizures you have had in the specified period, we will:

    a. Count multiple seizures occurring in a 24-hour period as one seizure.

    b. Count status epilepticus (a continuous series of seizures without return to consciousness between seizures) as one seizure.

    c. Count a dyscognitive seizure that progresses into a generalized tonic-clonic seizure as one generalized tonic-clonic seizure.

    d. We do not count seizures that occur during a period when you are not adhering to prescribed treatment without good reason. When we determine that you had good reason for not adhering to prescribed treatment, we will consider your physical, mental, educational, and communicative limitations (including any language barriers). We will consider you to have good reason for not following prescribed treatment if, for example, the treatment is very risky for you due to its consequences or unusual nature, or if you are unable to afford prescribed treatment that you are willing to accept, but for which no free community resources are available. We will follow guidelines found in our policy, such as §§ 404.1530(c) and 416.930(c) of this chapter, when we determine whether you have a good reason for not adhering to prescribed treatment.

    e. We do not count psychogenic nonepileptic seizures or pseudoseizures under 11.02. We evaluate these seizures under the mental disorders body system, 12.00.

    5. Electroencephalography (EEG) testing. We do not require EEG test results; therefore, we will not purchase them. However, if EEG test results are available in your medical records, we will evaluate them in the context of the other evidence in your case record.

    I. What is vascular insult to the brain, and how do we evaluate it under 11.04?

    1. Vascular insult to the brain (cerebrum, cerebellum, or brainstem), commonly referred to as stroke or cerebrovascular accident (CVA), is brain cell death caused by an interruption of blood flow within or leading to the brain, or by a hemorrhage from a ruptured blood vessel or aneurysm in the brain. If you have a vision impairment resulting from your vascular insult, we may evaluate that impairment under the special senses body system, 2.00.

    2. We need evidence of sensory or motor aphasia that results in ineffective speech or communication under 11.04A (see 11.00E). We may evaluate your communication impairment under listing 11.04C if you have marked limitation in physical functioning and marked limitation in one of the four areas of mental functioning.

    3. We generally need evidence from at least 3 months after the vascular insult to evaluate whether you have disorganization of motor functioning under 11.04B, or the impact that your disorder has on your physical and mental functioning under 11.04C. In some cases, evidence of your vascular insult is sufficient to allow your claim within 3 months post-vascular insult. If we are unable to allow your claim within 3 months after your vascular insult, we will defer adjudication of the claim until we obtain evidence of your neurological disorder at least 3 months post-vascular insult.

    J. What are benign brain tumors, and how do we evaluate them under 11.05? Benign brain tumors are noncancerous (nonmalignant) abnormal growths of tissue in or on the brain that invade healthy brain tissue or apply pressure on the brain or cranial nerves. We evaluate their effects on your functioning as discussed in 11.00D and 11.00G. We evaluate malignant brain tumors under the cancer body system in 13.00. If you have a vision impairment resulting from your benign brain tumor, we may evaluate that impairment under the special senses body system, 2.00.

    K. What is Parkinsonian syndrome, and how do we evaluate it under 11.06? Parkinsonian syndrome is a term that describes a group of chronic, progressive movement disorders resulting from loss or decline in the function of dopamine-producing brain cells. Dopamine is a neurotransmitter that regulates muscle movement throughout the body. When we evaluate your Parkinsonian syndrome, we will consider your adherence to prescribed treatment (see 11.00C).

    L. What is cerebral palsy, and how do we evaluate it under 11.07?

    1. Cerebral palsy (CP) is a term that describes a group of static, nonprogressive disorders caused by abnormalities within the brain that disrupt the brain's ability to control movement, muscle coordination, and posture. The resulting motor deficits manifest very early in a person's development, with delayed or abnormal progress in attaining developmental milestones. Deficits may become more obvious as the person grows and matures over time.

    2. We evaluate your signs and symptoms, such as ataxia, spasticity, flaccidity, athetosis, chorea, and difficulty with precise movements when we determine your ability to stand up, balance, walk, or perform fine and gross motor movements. We will also evaluate your signs, such as dysarthria and apraxia of speech, and receptive and expressive language problems when we determine your ability to communicate.

    3. We will consider your other impairments or signs and symptoms that develop secondary to the disorder, such as post-impairment syndrome (a combination of pain, fatigue, and weakness due to muscle abnormalities); overuse syndromes (repetitive motion injuries); arthritis; abnormalities of proprioception (perception of the movements and position of the body); abnormalities of stereognosis (perception and identification of objects by touch); learning problems; anxiety; and depression.

    M. What are spinal cord disorders, and how do we evaluate them under 11.08?

    1. Spinal cord disorders may be congenital or caused by injury to the spinal cord. Motor signs and symptoms of spinal cord disorders include paralysis, flaccidity, spasticity, and weakness.

    2. Spinal cord disorders with complete loss of function (11.08A) addresses spinal cord disorders that result in a complete lack of motor, sensory, and autonomic function of the affected part(s) of the body.

    3. Spinal cord disorders with disorganization of motor function (11.08B) addresses spinal cord disorders that result in less than a complete loss of function of the affected part(s) of the body, reducing, but not eliminating, motor, sensory, and autonomic function.

    4. When we evaluate your spinal cord disorder, we generally need evidence from at least 3 months after your symptoms began in order to evaluate your disorganization of motor function. In some cases, evidence of your spinal cord disorder may be sufficient to allow your claim within 3 months after the spinal cord disorder. If the medical evidence demonstrates total cord transection causing a loss of motor and sensory functions below the level of injury, we will not wait 3 months but will make the allowance decision immediately.

    N. What is multiple sclerosis, and how do we evaluate it under 11.09?

    1. Multiple sclerosis (MS) is a chronic, inflammatory, degenerative disorder that damages the myelin sheath surrounding the nerve fibers in the brain and spinal cord. The damage disrupts the normal transmission of nerve impulses within the brain and between the brain and other parts of the body, causing impairment in muscle coordination, strength, balance, sensation, and vision. There are several forms of MS, ranging from mildly to highly aggressive. Milder forms generally involve acute attacks (exacerbations) with partial or complete recovery from signs and symptoms (remissions). Aggressive forms generally exhibit a steady progression of signs and symptoms with few or no remissions. The effects of all forms vary from person to person.

    2. We evaluate your signs and symptoms, such as flaccidity, spasticity, spasms, incoordination, imbalance, tremor, physical fatigue, muscle weakness, dizziness, tingling, and numbness when we determine your ability to stand up, balance, walk, or perform fine and gross motor movements. When determining whether you have limitations of physical and mental functioning, we will consider your other impairments or signs and symptoms that develop secondary to the disorder, such as fatigue; visual loss; trouble sleeping; impaired attention, concentration, memory, or judgment; mood swings; and depression. If you have a vision impairment resulting from your MS, we may evaluate that impairment under the special senses body system, 2.00.

    O. What is amyotrophic lateral sclerosis, and how do we evaluate it under 11.10? Amyotrophic lateral sclerosis (ALS) is a type of motor neuron disorder that rapidly and progressively attacks the nerve cells responsible for controlling voluntary muscles. We establish ALS under 11.10 when you have a documented diagnosis of ALS. We require documentation based on generally accepted methods consistent with the prevailing state of medical knowledge and clinical practice. We require laboratory testing to establish the diagnosis when the clinical findings of upper and lower motor neuron disease are not present in three or more regions. Electrophysiological studies, such as nerve conduction velocity studies and electromyography (EMG), may support your diagnosis of ALS; however, we will not purchase these studies.

    P. What are neurodegenerative disorders of the central nervous system, such as Huntington's disease, Friedreich's ataxia, and spinocerebellar degeneration, and how do we evaluate them under 11.17? Neurodegenerative disorders of the central nervous system are disorders characterized by progressive and irreversible degeneration of neurons or their supporting cells. Over time, these disorders impair many of the body's motor, cognitive, and other mental functions. We consider neurodegenerative disorders of the central nervous system under 11.17 that we do not evaluate elsewhere in section 11.00, such as Huntington's disease (HD), Friedreich's ataxia, spinocerebellar degeneration, Creutzfeldt-Jakob disease (CJD), progressive supranuclear palsy (PSP), early-onset Alzheimer's disease, and frontotemporal dementia (Pick's disease). When these disorders result in solely cognitive and other mental function effects, we will evaluate the disorder under the mental disorder listings.

    Q. What is traumatic brain injury, and how do we evaluate it under 11.18?

    1. Traumatic brain injury (TBI) is damage to the brain resulting from skull fracture, collision with an external force leading to a closed head injury, or penetration by an object that enters the skull and makes contact with brain tissue. We evaluate TBI that results in coma or persistent vegetative state (PVS) under 11.20.

    2. We generally need evidence from at least 3 months after the TBI to evaluate whether you have disorganization of motor function under 11.18A or the impact that your disorder has on your physical and mental functioning under 11.18B. In some cases, evidence of your TBI is sufficient to determine disability within 3 months post-TBI. If we are unable to allow your claim within 3 months post-TBI, we will defer adjudication of the claim until we obtain evidence of your neurological disorder at least 3 months post-TBI. If a finding of disability still is not possible at that time, we will again defer adjudication of the claim until we obtain evidence at least 6 months after your TBI.

    R. What are coma and persistent vegetative state, and how do we evaluate them under 11.20? Coma is a state of unconsciousness in which a person does not exhibit a sleep/wake cycle, and is unable to perceive or respond to external stimuli. People who do not fully emerge from coma may progress into a persistent vegetative state (PVS). PVS is a condition of partial arousal in which a person may have a low level of consciousness but is still unable to react to external stimuli. In contrast to coma, a person in a PVS retains sleep/wake cycles and may exhibit some key lower brain functions, such as spontaneous movement, opening and moving eyes, and grimacing. Coma or PVS may result from TBI, a nontraumatic insult to the brain (such as a vascular insult, infection, or brain tumor), or a neurodegenerative or metabolic disorder. Medically induced comas are not considered under 11.20 and should be considered under the section pertaining to the underlying reason the coma was medically induced and not under this section.

    S. What are motor neuron disorders, other than ALS, and how do we evaluate them under 11.22? Motor neuron disorders such as progressive bulbar palsy, primary lateral sclerosis (PLS), and spinal muscular atrophy (SMA) are progressive neurological disorders that destroy the cells that control voluntary muscle activity, such as walking, breathing, swallowing, and speaking. We evaluate the effects of these disorders on motor functioning, bulbar and neuromuscular functioning, oral communication, or limitations in physical and mental functioning.

    T. How do we consider symptoms of fatigue in these listings? Fatigue is one of the most common and limiting symptoms of some neurological disorders, such as multiple sclerosis, post-polio syndrome, and myasthenia gravis. These disorders may result in physical fatigue (lack of muscle strength) or mental fatigue (decreased awareness or attention). When we evaluate your fatigue, we will consider the intensity, persistence, and effects of fatigue on your functioning. This may include information such as the clinical and laboratory data and other objective evidence concerning your neurological deficit, a description of fatigue considered characteristic of your disorder, and information about your functioning. We consider the effects of physical fatigue on your ability to stand up, balance, walk, or perform fine and gross motor movements using the criteria described in 11.00D. We consider the effects of physical and mental fatigue when we evaluate your physical and mental functioning described in 11.00G.

    U. How do we evaluate your neurological disorder when it does not meet one of these listings?

    1. If your neurological disorder does not meet the criteria of any of these listings, we must also consider whether your impairment(s) meets the criteria of a listing in another body system. If you have a severe medically determinable impairment(s) that does not meet a listing, we will determine whether your impairment(s) medically equals a listing. See §§ 404.1526 and 416.926 of this chapter.

    2. If your impairment(s) does not meet or medically equal the criteria of a listing, you may or may not have the residual functional capacity to perform your past relevant work or adjust to other work that exists in significant numbers in the national economy, which we determine at the fourth and, if necessary, the fifth steps of the sequential evaluation process in §§ 404.1520 and 416.920 of this chapter.

    3. We use the rules in §§ 404.1594 and 416.994 of this chapter, as appropriate, when we decide whether you continue to be disabled.

    11.01 Category of Impairments, Neurological Disorders

    11.02 Epilepsy, documented by a detailed description of a typical seizure and characterized by A, B, C, or D:

    A. Generalized tonic-clonic seizures (see 11.00H1a), occurring at least once a month for at least 3 consecutive months (see 11.00H4) despite adherence to prescribed treatment (see 11.00C); or

    B. Dyscognitive seizures (see 11.00H1b), occurring at least once a week for at least 3 consecutive months (see 11.00H4) despite adherence to prescribed treatment (see 11.00C); or

    C. Generalized tonic-clonic seizures (see 11.00H1a), occurring at least once every 2 months for at least 4 consecutive months (see 11.00H4) despite adherence to prescribed treatment (see 11.00C); and a marked limitation in one of the following:

    1. Physical functioning (see 11.00G3a); or

    2. Understanding, remembering, or applying information (see 11.00G3b(i)); or

    3. Interacting with others (see 11.00G3b(ii)); or

    4. Concentrating, persisting, or maintaining pace (see 11.00G3b(iii)); or

    5. Adapting or managing oneself (see 11.00G3b(iv)); or

    D. Dyscognitive seizures (see 11.00H1b), occurring at least once every 2 weeks for at least 3 consecutive months (see 11.00H4) despite adherence to prescribed treatment (see 11.00C); and a marked limitation in one of the following:

    1. Physical functioning (see 11.00G3a); or

    2. Understanding, remembering, or applying information (see 11.00G3b(i)); or

    3. Interacting with others (see 11.00G3b(ii)); or

    4. Concentrating, persisting, or maintaining pace (see 11.00G3b(iii)); or

    5. Adapting or managing oneself (see 11.00G3b(iv)).

    11.03 [Reserved]

    11.04 Vascular insult to the brain, characterized by A, B, or C:

    A. Sensory or motor aphasia resulting in ineffective speech or communication (see 11.00E1) persisting for at least 3 consecutive months after the insult; or

    B. Disorganization of motor function in two extremities (see 11.00D1), resulting in an extreme limitation (see 11.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities, persisting for at least 3 consecutive months after the insult; or

    C. Marked limitation (see 11.00G2) in physical functioning (see 11.00G3a) and in one of the following areas of mental functioning, both persisting for at least 3 consecutive months after the insult:

    1. Understanding, remembering, or applying information (see 11.00G3b(i)); or

    2. Interacting with others (see 11.00G3b(ii)); or

    3. Concentrating, persisting, or maintaining pace (see 11.00G3b(iii)); or

    4. Adapting or managing oneself (see 11.00G3b(iv)).

    11.05 Benign brain tumors, characterized by A or B:

    A. Disorganization of motor function in two extremities (see 11.00D1), resulting in an extreme limitation (see 11.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities; or

    B. Marked limitation (see 11.00G2) in physical functioning (see 11.00G3a), and in one of the following:

    1. Understanding, remembering, or applying information (see 11.00G3b(i)); or

    2. Interacting with others (see 11.00G3b(ii)); or

    3. Concentrating, persisting, or maintaining pace (see 11.00G3b(iii)); or

    4. Adapting or managing oneself (see 11.00G3b(iv)).

    11.06 Parkinsonian syndrome, characterized by A or B despite adherence to prescribed treatment for at least 3 consecutive months (see 11.00C):

    A. Disorganization of motor function in two extremities (see 11.00D1), resulting in an extreme limitation (see 11.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities; or

    B. Marked limitation (see 11.00G2) in physical functioning (see 11.00G3a), and in one of the following:

    1. Understanding, remembering, or applying information (see 11.00G3b(i)); or

    2. Interacting with others (see 11.00G3b(ii)); or

    3. Concentrating, persisting, or maintaining pace (see 11.00G3b(iii)); or

    4. Adapting or managing oneself (see 11.00G3b(iv)).

    11.07 Cerebral palsy, characterized by A, B, or C:

    A. Disorganization of motor function in two extremities (see 11.00D1), resulting in an extreme limitation (see 11.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities; or

    B. Marked limitation (see 11.00G2) in physical functioning (see 11.00G3a), and in one of the following:

    1. Understanding, remembering, or applying information (see 11.00G3b(i)); or

    2. Interacting with others (see 11.00G3b(ii)); or

    3. Concentrating, persisting, or maintaining pace (see 11.00G3b(iii)); or

    4. Adapting or managing oneself (see 11.00G3b(iv)); or

    C. Significant interference in communication due to speech, hearing, or visual deficit (see 11.00E2).

    11.08 Spinal cord disorders, characterized by A, B, or C:

    A. Complete loss of function, as described in 11.00M2, persisting for 3 consecutive months after the disorder (see 11.00M4); or

    B. Disorganization of motor function in two extremities (see 11.00D1), resulting in an extreme limitation (see 11.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities persisting for 3 consecutive months after the disorder (see 11.00M4); or

    C. Marked limitation (see 11.00G2) in physical functioning (see 11.00G3a) and in one of the following areas of mental functioning, both persisting for 3 consecutive months after the disorder (see 11.00M4):

    1. Understanding, remembering, or applying information (see 11.00G3b(i)); or

    2. Interacting with others (see 11.00G3b(ii)); or

    3. Concentrating, persisting, or maintaining pace (see 11.00G3b(iii)); or

    4. Adapting or managing oneself (see 11.00G3b(iv)).

    11.09 Multiple sclerosis, characterized by A or B:

    A. Disorganization of motor function in two extremities (see 11.00D1), resulting in an extreme limitation (see 11.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities; or

    B. Marked limitation (see 11.00G2) in physical functioning (see 11.00G3a), and in one of the following:

    1. Understanding, remembering, or applying information (see 11.00G3b(i)); or

    2. Interacting with others (see 11.00G3b(ii)); or

    3. Concentrating, persisting, or maintaining pace (see 11.00G3b(iii)); or

    4. Adapting or managing oneself (see 11.00G3b(iv)).

    11.10 Amyotrophic lateral sclerosis (ALS) established by clinical and laboratory findings (see 11.00O).

    11.11 Post-polio syndrome, characterized by A, B, C, or D:

    A. Disorganization of motor function in two extremities (see 11.00D1), resulting in an extreme limitation (see 11.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities; or

    B. Unintelligible speech (see 11.00E3); or

    C. Bulbar and neuromuscular dysfunction (see 11.00F), resulting in:

    1. Acute respiratory failure requiring mechanical ventilation; or

    2. Need for supplemental enteral nutrition via a gastrostomy or parenteral nutrition via a central venous catheter; or

    D. Marked limitation (see 11.00G2) in physical functioning (see 11.00G3a), and in one of the following:

    1. Understanding, remembering, or applying information (see 11.00G3b(i)); or

    2. Interacting with others (see 11.00G3b(ii)); or

    3. Concentrating, persisting, or maintaining pace (see 11.00G3b(iii)); or

    4. Adapting or managing oneself (see 11.00G3b(iv)).

    11.12 Myasthenia gravis, characterized by A, B, or C despite adherence to prescribed treatment for at least 3 months (see 11.00C):

    A. Disorganization of motor function in two extremities (see 11.00D1), resulting in an extreme limitation (see 11.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities; or

    B. Bulbar and neuromuscular dysfunction (see 11.00F), resulting in:

    1. One myasthenic crisis requiring mechanical ventilation; or

    2. Need for supplemental enteral nutrition via a gastrostomy or parenteral nutrition via a central venous catheter; or

    C. Marked limitation (see 11.00G2) in physical functioning (see 11.00G3a), and in one of the following:

    1. Understanding, remembering, or applying information (see 11.00G3b(i)); or

    2. Interacting with others (see 11.00G3b(ii)); or

    3. Concentrating, persisting, or maintaining pace (see 11.00G3b(iii)); or

    4. Adapting or managing oneself (see 11.00G3b(iv)).

    11.13 Muscular dystrophy, characterized by A or B:

    A. Disorganization of motor function in two extremities (see 11.00D1), resulting in an extreme limitation (see 11.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities; or

    B. Marked limitation (see 11.00G2) in physical functioning (see 11.00G3a), and in one of the following:

    1. Understanding, remembering, or applying information (see 11.00G3b(i)); or

    2. Interacting with others (see 11.00G3b(ii)); or

    3. Concentrating, persisting, or maintaining pace (see 11.00G3b(iii)); or

    4. Adapting or managing oneself (see 11.00G3b(iv)).

    11.14 Peripheral neuropathy, characterized by A or B:

    A. Disorganization of motor function in two extremities (see 11.00D1), resulting in an extreme limitation (see 11.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities; or

    B. Marked limitation (see 11.00G2) in physical functioning (see 11.00G3a), and in one of the following:

    1. Understanding, remembering, or applying information (see 11.00G3b(i)); or

    2. Interacting with others (see 11.00G3b(ii)); or

    3. Concentrating, persisting, or maintaining pace (see 11.00G3b(iii)); or

    4. Adapting or managing oneself (see 11.00G3b(iv)).

    11.15 [Reserved]

    11.16 [Reserved]

    11.17 Neurodegenerative disorders of the central nervous system, such as Huntington's disease, Friedreich's ataxia, and spinocerebellar degeneration, characterized by A or B:

    A. Disorganization of motor function in two extremities (see 11.00D1), resulting in an extreme limitation (see 11.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities; or

    B. Marked limitation (see 11.00G2) in physical functioning (see 11.00G3a), and in one of the following:

    1. Understanding, remembering, or applying information (see 11.00G3b(i)); or

    2. Interacting with others (see 11.00G3b(ii)); or

    3. Concentrating, persisting, or maintaining pace (see 11.00G3b(iii)); or

    4. Adapting or managing oneself (see 11.00G3b(iv)).

    11.18 Traumatic brain injury, characterized by A or B:

    A. Disorganization of motor function in two extremities (see 11.00D1), resulting in an extreme limitation (see 11.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities, persisting for at least 3 consecutive months after the injury; or

    B. Marked limitation (see 11.00G2) in physical functioning (see 11.00G3a), and in one of the following areas of mental functioning, persisting for at least 3 consecutive months after the injury:

    1. Understanding, remembering, or applying information (see 11.00G3b(i)); or

    2. Interacting with others (see 11.00G3b(ii)); or

    3. Concentrating, persisting, or maintaining pace (see 11.00G3b(iii)); or

    4. Adapting or managing oneself (see 11.00G3b(iv)).

    11.19 [Reserved]

    11.20 Coma or persistent vegetative state, persisting for at least 1 month.

    11.21 [Reserved]

    11.22 Motor neuron disorders other than ALS, characterized by A, B, or C:

    A. Disorganization of motor function in two extremities (see 11.00D1), resulting in an extreme limitation (see 11.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities; or

    B. Bulbar and neuromuscular dysfunction (see 11.00F), resulting in:

    1. Acute respiratory failure requiring invasive mechanical ventilation; or

    2. Need for supplemental enteral nutrition via a gastrostomy or parenteral nutrition via a central venous catheter; or

    C. Marked limitation (see 11.00G2) in physical functioning (see 11.00G3a), and in one of the following:

    1. Understanding, remembering, or applying information (see 11.00G3b(i)); or

    2. Interacting with others (see 11.00G3b(ii)); or

    3. Concentrating, persisting, or maintaining pace (see 11.00G3b(iii)); or

    4. Adapting or managing oneself (see 11.00G3b(iv)).

    12.00 MENTAL DISORDERS

    D. * * *

    10. Traumatic brain injury (TBI). In cases involving TBI, follow the documentation and evaluation guidelines in 11.00Q.

    12.01 Category of Impairments, Mental Disorders

    12.09 * * *

    E. Peripheral neuropathy. Evaluate under 11.14.

    I. Seizures. Evaluate under 11.02.

    Part B

    111.00 Neurological Disorders

    101.00 MUSCULOSKELETAL SYSTEM

    B. Loss of function.

    1. General. * * * We evaluate impairments with neurological causes under 111.00, as appropriate.

    K. Disorders of the spine, listed in 101.04, result in limitations because of distortion of the bony and ligamentous architecture of the spine and associated impingement on nerve roots (including the cauda equina) or spinal cord. Such impingement on nerve tissue may result from a herniated nucleus pulposus, spinal stenosis, arachnoiditis, or other miscellaneous conditions.

    111.00 NEUROLOGICAL DISORDERS

    A. Which neurological disorders do we evaluate under these listings? We evaluate epilepsy, coma or persistent vegetative state (PVS), and neurological disorders that cause disorganization of motor function, bulbar and neuromuscular dysfunction, or communication impairment. Under this body system, we evaluate the limitations resulting from the impact of the neurological disease process itself. If you have a neurological disorder(s) that affects your physical and mental functioning, we will evaluate your impairments under the rules we use to determine functional equivalence. If your neurological disorder results in only mental impairment or if you have a co-occurring mental condition that is not caused by your neurological disorder (for example, Autism spectrum disorder), we will evaluate your mental impairment under the mental disorders body system, 112.00.

    B. What evidence do we need to document your neurological disorder?

    1. We need both medical and non-medical evidence (signs, symptoms, and laboratory findings) to assess the effects of your neurological disorder. Medical evidence should include your medical history, examination findings, relevant laboratory tests, and the results of imaging. Imaging refers to medical imaging techniques, such as x-ray, computerized tomography (CT), magnetic resonance imaging (MRI), and electroencephalography (EEG). The imaging must be consistent with the prevailing state of medical knowledge and clinical practice as the proper technique to support the evaluation of the disorder. In addition, the medical evidence may include descriptions of any prescribed treatment and your response to it. We consider non-medical evidence such as statements you or others make about your impairments, your restrictions, your daily activities, or, if you are an adolescent, your efforts to work.

    2. We will make every reasonable effort to obtain the results of your laboratory and imaging evidence. When the results of any of these tests are part of the existing evidence in your case record, we will evaluate the test results and all other relevant evidence. We will not purchase imaging, or other diagnostic tests or laboratory tests that are complex, may involve significant risk, or that are invasive. We will not routinely purchase tests that are expensive or not readily available.

    C. How do we consider adherence to prescribed treatment in neurological disorders? In 111.02 (Epilepsy) and 111.12 (Myasthenia gravis), we require that limitations from these neurological disorders exist despite adherence to prescribed treatment. “Despite adherence to prescribed treatment” means that you have taken medication(s) or followed other treatment procedures for your neurological disorder(s) as prescribed by a physician for three consecutive months but your impairment continues to meet the other listing requirements despite this treatment. You may receive your treatment at a health care facility that you visit regularly, even if you do not see the same physician on each visit.

    D. What do we mean by disorganization of motor function?

    1. Disorganization of motor function means interference, due to your neurological disorder, with movement of two extremities; i.e., the lower extremities, or upper extremities (including fingers, wrists, hands, arms, and shoulders). By two extremities we mean both lower extremities, or both upper extremities, or one upper extremity and one lower extremity. All listings in this body system, except for 111.02 (Epilepsy) and 111.20 (Coma and persistent vegetative state), include criteria for disorganization of motor function that results in an extreme limitation in your ability to:

    a. Stand up from a seated position; or

    b. Balance while standing or walking; or

    c. Use the upper extremities (e.g., fingers, wrists, hands, arms, and shoulders).

    2. Extreme limitation means the inability to stand up from a seated position, maintain balance in a standing position and while walking, or use your upper extremities to independently initiate, sustain, and complete age-appropriate activities. The assessment of motor function depends on the degree of interference with standing up; balancing while standing or walking; or using the upper extremities (including fingers, hands, arms, and shoulders).

    a. Inability to stand up from a seated position means that once seated you are unable to stand and maintain an upright position without the assistance of another person or the use of an assistive device, such as a walker, two crutches, or two canes.

    b. Inability to maintain balance in a standing position means that you are unable to maintain an upright position while standing or walking without the assistance of another person or an assistive device, such as a walker, two crutches, or two canes.

    c. Inability to use your upper extremities means that you have a loss of function of both upper extremities (e.g., fingers, wrists, hands, arms, and shoulders) that very seriously limits your ability to independently initiate, sustain, and complete age- appropriate activities involving fine and gross motor movements. Inability to perform fine and gross motor movements could include not being able to pinch, manipulate, and use your fingers; or not being able to use your hands, arms, and shoulders to perform gross motor movements, such as handling, gripping, grasping, holding, turning, and reaching; or not being able to engage in exertional movements such a lifting, carrying, pushing, and pulling.

    3. For children who are not yet able to balance, stand up, or walk independently, we consider their function based on assessments of limitations in the ability to perform comparable age-appropriate activities with the lower and upper extremities, given normal developmental milestones. For such children, an extreme level of limitation means developmental milestones at less than one-half of the child's chronological age.

    E. What do we mean by bulbar and neuromuscular dysfunction? The bulbar region of the brain is responsible for controlling the bulbar muscles in the throat, tongue, jaw, and face. Bulbar and neuromuscular dysfunction refers to weakness in these muscles, resulting in breathing, swallowing, and speaking impairments. Listings 111.12 (Myasthenia gravis) and 111.22 (Motor neuron disorders) include criteria for evaluating bulbar and neuromuscular dysfunction. If your neurological disorder has resulted in a breathing disorder, we may evaluate that condition under the respiratory system, 103.00.

    F. What is epilepsy, and how do we evaluate it under 111.02?

    1. Epilepsy is a pattern of recurrent and unprovoked seizures that are manifestations of abnormal electrical activity in the brain. There are various types of generalized and “focal” or partial seizures. In children, the most common potentially disabling seizure types are generalized tonic-clonic seizures, dyscognitive seizures (formerly complex partial seizures), and absence seizures. However, psychogenic nonepileptic seizures and pseudoseizures are not epileptic seizures for the purpose of 111.02. We evaluate psychogenic seizures and pseudoseizures under the mental disorders body system, 112.00.

    a. Generalized tonic-clonic seizures are characterized by loss of consciousness accompanied by a tonic phase (sudden muscle tensing causing the child to lose postural control) followed by a clonic phase (rapid cycles of muscle contraction and relaxation, also called convulsions). Tongue biting and incontinence may occur during generalized tonic-clonic seizures, and injuries may result from falling.

    b. Dyscognitive seizures are characterized by alteration of consciousness without convulsions or loss of muscle control. During the seizure, blank staring, change of facial expression, and automatisms (such as lip smacking, chewing or swallowing, or repetitive simple actions, such as gestures or verbal utterances) may occur. During its course, a dyscognitive seizure may progress into a generalized tonic-clonic seizure (see 111.00F1a).

    c. Absence seizures (petit mal) are also characterized by an alteration in consciousness, but are shorter than other generalized seizures (e.g., tonic-clonic and dyscognitive) seizures, generally lasting for only a few seconds rather than minutes. They may present with blank staring, change of facial expression, lack of awareness and responsiveness, and a sense of lost time after the seizure. An aura never precedes absence seizures. Although absence seizures are brief, frequent occurrence may limit functioning. This type of seizure usually does not occur after adolescence.

    d. Febrile seizures may occur in young children in association with febrile illnesses. We will consider seizures occurring during febrile illnesses. To meet 111.02, we require documentation of seizures during nonfebrile periods and epilepsy must be established.

    2. Description of seizure. We require at least one detailed description of your seizures from someone, preferably a medical professional, who has observed at least one of your typical seizures. If you experience more than one type of seizure, we require a description of each type.

    3. Serum drug levels. We do not require serum drug levels; therefore, we will not purchase them. However, if serum drug levels are available in your medical records, we will evaluate them in the context of the other evidence in your case record.

    4. Counting seizures. The period specified in 111.02A or B cannot begin earlier than one month after you began prescribed treatment. The required number of seizures must occur within the period we are considering in connection with your application or continuing disability review. When we evaluate the frequency of your seizures, we also consider your adherence to prescribed treatment (see 111.00C). When we determine the number of seizures you have had in the specified period, we will:

    a. Count multiple seizures occurring in a 24-hour period as one seizure.

    b. Count status epilepticus (a continuous series of seizures without return to consciousness between seizures) as one seizure.

    c. Count a dyscognitive seizure that progresses into a generalized tonic-clonic seizure as one generalized tonic-clonic seizure.

    d. We do not count seizures that occur during a period when you are not adhering to prescribed treatment without good reason. When we determine that you had a good reason for not adhering to prescribed treatment, we will consider your physical, mental, educational, and communicative limitations (including any language barriers). We will consider you to have good reason for not following prescribed treatment if, for example, the treatment is very risky for you due to its consequences or unusual nature, or if you are unable to afford prescribed treatment that you are willing to accept, but for which no free community resources are available. We will follow guidelines found in our policy, such as § 416.930(c) of this chapter, when we determine whether you have a good reason for not adhering to prescribed treatment.

    e. We do not count psychogenic nonepileptic seizures or pseudoseizures under 111.02.We evaluate these seizures under the mental disorders body system, 112.00.

    5. Electroencephalography (EEG) testing. We do not require EEG test results; therefore, we will not purchase them. However, if EEG test results are available in your medical records, we will evaluate them in the context of the other evidence in your case record.

    G. What is vascular insult to the brain, and how do we evaluate it under 111.04?

    1. Vascular insult to the brain (cerebrum, cerebellum, or brainstem), commonly referred to as stroke or cerebrovascular accident (CVA), is brain cell death caused by an interruption of blood flow within or leading to the brain, or by a hemorrhage from a ruptured blood vessel or aneurysm in the brain. If you have a vision impairment resulting from your vascular insult, we may evaluate that impairment under the special senses body system, 102.00.

    2. We generally need evidence from at least 3 months after the vascular insult to determine whether you have disorganization of motor function under 111.04. In some cases, evidence of your vascular insult is sufficient to allow your claim within 3 months post-vascular insult. If we are unable to allow your claim within 3 months after your vascular insult, we will defer adjudication of the claim until we obtain evidence of your neurological disorder at least 3 months post-vascular insult.

    H. What are benign brain tumors, and how do we evaluate them under 111.05? Benign brain tumors are noncancerous (nonmalignant) abnormal growths of tissue in or on the brain that invade healthy brain tissue or apply pressure on the brain or cranial nerves. We evaluate their effects on your functioning as discussed in 111.00D. We evaluate malignant brain tumors under the cancer body system in 113.00. If you have a vision impairment resulting from your benign brain tumor, we may evaluate that impairment under the special senses body system, 102.00.

    I. What is cerebral palsy, and how do we evaluate it under 111.07?

    1. Cerebral palsy (CP) is a term that describes a group of static, nonprogressive disorders caused by abnormalities within the brain that disrupt the brain's ability to control movement, muscle coordination, and posture. The resulting motor deficits manifest very early in a child's development, with delayed or abnormal progress in attaining developmental milestones; deficits may become more obvious as the child grows and matures over time.

    2. We evaluate your signs and symptoms, such as ataxia, spasticity, flaccidity, athetosis, chorea, and difficulty with precise movements when we determine your ability to stand up, balance, walk, or perform fine and gross motor movements. We will also evaluate your signs, such as dysarthria and apraxia of speech, and receptive and expressive language problems when we determine your ability to communicate.

    3. We will consider your other impairments or signs and symptoms that develop secondary to the disorder, such as post-impairment syndrome (a combination of pain, fatigue, and weakness due to muscle abnormalities); overuse syndromes (repetitive motion injuries); arthritis; abnormalities of proprioception (perception of the movements and position of the body); abnormalities of stereognosis (perception and identification of objects by touch); learning problems; anxiety; and depression.

    J. What are spinal cord disorders, and how do we evaluate them under 111.08?

    1. Spinal cord disorders may be congenital or caused by injury to the spinal cord. Motor signs and symptoms of spinal cord disorders include paralysis, flaccidity, spasticity, and weakness.

    2. Spinal cord disorders with complete loss of function (111.08A) addresses spinal cord disorders that result in complete lack of motor, sensory, and autonomic function of the affected part(s) of the body.

    3. Spinal cord disorders with disorganization of motor function (111.08B) addresses spinal cord disorders that result in less than complete loss of function of the affected part(s) of the body, reducing, but not eliminating, motor, sensory, and autonomic function.

    4. When we evaluate your spinal cord disorder, we generally need evidence from at least 3 months after your symptoms began in order to evaluate your disorganization of motor function. In some cases, evidence of your spinal cord disorder may be sufficient to allow your claim within 3 months after the spinal cord disorder. If the medical evidence demonstrates total cord transection causing a loss of motor and sensory functions below the level of injury, we will not wait 3 months but will make the allowance decision immediately.

    K. What are communication impairments associated with neurological disorders, and how do we evaluate them under 111.09?

    1. Communication impairments result from medically determinable neurological disorders that cause dysfunction in the parts of the brain responsible for speech and language. Under 111.09, we must have recent comprehensive evaluation including all areas of affective and effective communication, performed by a qualified professional, to document a communication impairment associated with a neurological disorder.

    2. Under 111.09A, we need documentation from a qualified professional that your neurological disorder has resulted in a speech deficit that significantly affects your ability to communicate. Significantly affects means that you demonstrate a serious limitation in communicating, and a person who is unfamiliar with you cannot easily understand or interpret your speech.

    3. Under 111.09B, we need documentation from a qualified professional that shows that your neurological disorder has resulted in a comprehension deficit that results in ineffective verbal communication for your age. For the purposes of 111.09B, comprehension deficit means a deficit in receptive language. Ineffective verbal communication means that you demonstrate serious limitation in your ability to communicate orally on the same level as other children of the same age and level of development.

    4. Under 111.09C, we need documentation of a neurological disorder that has resulted in hearing loss. Your hearing loss will be evaluated under listing 102.10 or 102.11.

    5. We evaluate speech deficits due to non-neurological disorders under 2.09.

    L. What are neurodegenerative disorders of the central nervous system, such as Juvenile-onset Huntington's disease and Friedreich's ataxia, and how do we evaluate them under 111.17? Neurodegenerative disorders of the central nervous system are disorders characterized by progressive and irreversible degeneration of neurons or their supporting cells. Over time, these disorders impair many of the body's motor or cognitive and other mental functions. We consider neurodegenerative disorders of the central nervous system under 111.17 that we do not evaluate elsewhere in section 111.00, such as juvenile-onset Huntington's disease (HD) and Friedreich's ataxia. When these disorders result in solely cognitive and other mental functional limitations, we will evaluate the disorder under the mental disorder listings, 112.00.

    M. What is traumatic brain injury, and how do we evaluate it under 111.18?

    1. Traumatic brain injury (TBI) is damage to the brain resulting from skull fracture, collision with an external force leading to a closed head injury, or penetration by an object that enters the skull and makes contact with brain tissue. We evaluate a TBI that results in coma or persistent vegetative state (PVS) under 111.20.

    2. We generally need evidence from at least 3 months after the TBI to evaluate whether you have disorganization of motor function under 111.18. In some cases, evidence of your TBI is sufficient to determine disability. If we are unable to allow your claim within 3 months post-TBI, we will defer adjudication of the claim until we obtain evidence of your neurological disorder at least 3 months post-TBI. If a finding of disability still is not possible at that time, we will again defer adjudication of the claim until we obtain evidence at least 6 months after your TBI.

    N. What are coma and persistent vegetative state, and how do we evaluate them under 111.20? Coma is a state of unconsciousness in which a child does not exhibit a sleep/wake cycle, and is unable to perceive or respond to external stimuli. Children who do not fully emerge from coma may progress into persistent vegetative state (PVS). PVS is a condition of partial arousal in which a child may have a low level of consciousness but is still unable to react to external stimuli. In contrast to coma, a child in a PVS retains sleep/wake cycles and may exhibit some key lower brain functions, such as spontaneous movement, opening and moving eyes, and grimacing. Coma or PVS may result from a TBI, a nontraumatic insult to the brain (such as a vascular insult, infection, or brain tumor), or a neurodegenerative or metabolic disorder. Medically induced comas should be considered under the section pertaining to the underlying reason the coma was medically induced and not under this section.

    O. What is multiple sclerosis, and how do we evaluate it under 111.21?

    1. Multiple sclerosis (MS) is a chronic, inflammatory, degenerative disorder that damages the myelin sheath surrounding the nerve fibers in the brain and spinal cord. The damage disrupts the normal transmission of nerve impulses within the brain and between the brain and other parts of the body causing impairment in muscle coordination, strength, balance, sensation, and vision. There are several forms of MS, ranging from slightly to highly aggressive. Milder forms generally involve acute attacks (exacerbations) with partial or complete recovery from signs and symptoms (remissions). Aggressive forms generally exhibit a steady progression of signs and symptoms with few or no remissions. The effects of all forms vary from child to child.

    2. We evaluate your signs and symptoms, such as flaccidity, spasticity, spasms, incoordination, imbalance, tremor, physical fatigue, muscle weakness, dizziness, tingling, and numbness when we determine your ability to stand up, balance, walk, or perform fine and gross motor movements, such as using your arms, hands, and fingers. If you have a vision impairment resulting from your MS, we may evaluate that impairment under the special senses body system, 102.00.

    P. What are motor neuron disorders, and how do we evaluate them under 111.22? Motor neuron disorders are progressive neurological disorders that destroy the cells that control voluntary muscle activity, such as walking, breathing, swallowing, and speaking. The most common motor neuron disorders in children are progressive bulbar palsy and spinal muscular dystrophy syndromes. We evaluate the effects of these disorders on motor functioning or bulbar and neuromuscular functioning.

    Q. How do we consider symptoms of fatigue in these listings? Fatigue is one of the most common and limiting symptoms of some neurological disorders, such as multiple sclerosis and myasthenia gravis. These disorders may result in physical fatigue (lack of muscle strength) or mental fatigue (decreased awareness or attention). When we evaluate your fatigue, we will consider the intensity, persistence, and effects of fatigue on your functioning. This may include information such as the clinical and laboratory data and other objective evidence concerning your neurological deficit, a description of fatigue considered characteristic of your disorder, and information about your functioning. We consider the effects of physical fatigue on your ability to stand up, balance, walk, or perform fine and gross motor movements using the criteria described in 111.00D.

    R. How do we evaluate your neurological disorder when it does not meet one of these listings?

    1. If your neurological disorder does not meet the criteria of any of these listings, we must also consider whether your impairment(s) meets the criteria of a listing in another body system. If you have a severe medically determinable impairment(s) that does not meet a listing, we will determine whether your impairment(s) medically equals a listing. See § 416.926 of this chapter.

    2. If your impairment(s) does not meet or medically equal a listing, we will consider whether your impairment(s) functionally equals the listings. See § 416.926a of this chapter.

    3. We use the rules in § 416.994a of this chapter when we decide whether you continue to be disabled.

    111.01 Category of Impairments, Neurological Disorders

    111.02 Epilepsy, documented by a detailed description of a typical seizure and characterized by A or B:

    A. Generalized tonic-clonic seizures (see 111.00F1a), occurring at least once a month for at least 3 consecutive months (see 111.00F4) despite adherence to prescribed treatment (see 111.00C); or

    B. Dyscognitive seizures (see 111.00F1b) or absence seizures (see 111.00F1c), occurring at least once a week for at least 3 consecutive months (see 111.00F4) despite adherence to prescribed treatment (see 111.00C).

    111.03 [Reserved]

    111.04 Vascular insult to the brain, characterized by disorganization of motor function in two extremities (see 111.00D1), resulting in an extreme limitation (see 111.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities, persisting for at least 3 consecutive months after the insult.

    111.05 Benign brain tumors, characterized by disorganization of motor function in two extremities (see 111.00D1), resulting in an extreme limitation (see 111.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities.

    111.06 [Reserved]

    111.07 Cerebral palsy, characterized by disorganization of motor function in two extremities (see 111.00D1), resulting in an extreme limitation (see 111.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities.

    111.08 Spinal cord disorders, characterized by A or B:

    A. Complete loss of function, as described in 111.00J2, persisting for 3 consecutive months after the disorder (see 111.00J4); or

    B. Disorganization of motor function in two extremities (see 111.00D1), resulting in an extreme limitation (see 111.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities persisting for 3 consecutive months after the disorder (see 111.00J4).

    111.09 Communication impairment, associated with documented neurological disorder and one of the following:

    A. Documented speech deficit that significantly affects (see 111.00K1) the clarity and content of the speech; or

    B. Documented comprehension deficit resulting in ineffective verbal communication (see 111.00K2) for age; or

    C. Impairment of hearing as described under the criteria in 102.10 or 102.11.

    111.10 [Reserved]

    111.11 [Reserved]

    111.12 Myasthenia gravis, characterized by A or B despite adherence to prescribed treatment for at least 3 months (see 111.00C):

    A. Disorganization of motor function in two extremities (see 111.00D1), resulting in an extreme limitation (see 111.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities; or

    B. Bulbar and neuromuscular dysfunction (see 111.00E), resulting in:

    1. One myasthenic crisis requiring mechanical ventilation; or

    2. Need for supplemental enteral nutrition via a gastrostomy or parenteral nutrition via a central venous catheter.

    111.13 Muscular dystrophy, characterized by disorganization of motor function in two extremities (see 111.00D1), resulting in an extreme limitation (see 111.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities.

    111.14 Peripheral neuropathy, characterized by disorganization of motor function in two extremities (see 111.00D1), resulting in an extreme limitation (see 111.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities.

    111.15 [Reserved]

    111.16 [Reserved]

    111.17 Neurodegenerative disorders of the central nervous system, such as Juvenile-onset Huntington's disease and Friedreich's ataxia, characterized by disorganization of motor function in two extremities (see 111.00D1), resulting in an extreme limitation (see 111.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities.

    111.18 Traumatic brain injury, characterized by disorganization of motor function in two extremities (see 111.00D1), resulting in an extreme limitation (see 111.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities, persisting for at least 3 consecutive months after the injury.

    111.19 [Reserved]

    111.20 Coma or persistent vegetative state, persisting for at least 1 month.

    111.21 Multiple sclerosis, characterized by disorganization of motor function in two extremities (see 111.00D1), resulting in an extreme limitation (see 111.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities.

    111.22 Motor neuron disorders, characterized by A or B:

    A. Disorganization of motor function in two extremities (see 111.00D1), resulting in an extreme limitation (see 111.00D2) in the ability to stand up from a seated position, balance while standing or walking, or use the upper extremities; or

    B. Bulbar and neuromuscular dysfunction (see 111.00E), resulting in:

    1. Acute respiratory failure requiring invasive mechanical ventilation; or

    2. Need for supplemental enteral nutrition via a gastrostomy or parenteral nutrition via a central venous catheter.

    [FR Doc. 2016-15306 Filed 6-30-16; 8:45 am] BILLING CODE 4191-02-P
    DEPARTMENT OF HEALTH AND HUMAN SERVICES Food and Drug Administration 21 CFR Part 101 [Docket No. FDA-2015-D-1839] The Food and Drug Administration's Policy on Declaring Small Amounts of Nutrients and Dietary Ingredients on Nutrition Labels; Guidance for Industry; Availability AGENCY:

    Food and Drug Administration, HHS.

    ACTION:

    Notification of availability.

    SUMMARY:

    The Food and Drug Administration (FDA, we, or the Agency) is announcing the availability of a guidance for industry entitled “FDA's Policy on Declaring Small Amounts of Nutrients and Dietary Ingredients on Nutrition Labels: Guidance for Industry.” The guidance explains to manufacturers of conventional foods and dietary supplements our policy on determining the amount to declare on the nutrition label for certain nutrients and dietary ingredients that are present in a small amount.

    DATES:

    The guidance is available on July 1, 2016. Submit either electronic or written comments on FDA guidances at any time.

    ADDRESSES:

    You may submit comments as follows:

    Electronic Submissions

    Submit electronic comments in the following way:

    Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments. Comments submitted electronically, including attachments, to http://www.regulations.gov will be posted to the docket unchanged. Because your comment will be made public, you are solely responsible for ensuring that your comment does not include any confidential information that you or a third party may not wish to be posted, such as medical information, your or anyone else's Social Security number, or confidential business information, such as a manufacturing process. Please note that if you include your name, contact information, or other information that identifies you in the body of your comments, that information will be posted on http://www.regulations.gov.

    • If you want to submit a comment with confidential information that you do not wish to be made available to the public, submit the comment as a written/paper submission and in the manner detailed (see “Written/Paper Submissions” and “Instructions”).

    Written/Paper Submissions

    Submit written/paper submissions as follows:

    Mail/Hand delivery/Courier (for written/paper submissions): Division of Dockets Management (HFA-305), Food and Drug Administration, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.

    • For written/paper comments submitted to the Division of Dockets Management, FDA will post your comment, as well as any attachments, except for information submitted, marked and identified, as confidential, if submitted as detailed in “Instructions.”

    Instructions: All submissions received must include the Docket No. FDA-2015-D-1839. Received comments will be placed in the docket and, except for those submitted as “Confidential Submissions,” publicly viewable at http://www.regulations.gov or at the Division of Dockets Management between 9 a.m. and 4 p.m., Monday through Friday.

    • Confidential Submissions—To submit a comment with confidential information that you do not wish to be made publicly available, submit your comments only as a written/paper submission. You should submit two copies total. One copy will include the information you claim to be confidential with a heading or cover note that states “THIS DOCUMENT CONTAINS CONFIDENTIAL INFORMATION.” The Agency will review this copy, including the claimed confidential information, in its consideration of comments. The second copy, which will have the claimed confidential information redacted/blacked out, will be available for public viewing and posted on http://www.regulations.gov. Submit both copies to the Division of Dockets Management. If you do not wish your name and contact information to be made publicly available, you can provide this information on the cover sheet and not in the body of your comments and you must identify this information as “confidential.” Any information marked as “confidential” will not be disclosed except in accordance with 21 CFR 10.20 and other applicable disclosure law. For more information about FDA's posting of comments to public dockets, see 80 FR 56469, September 18, 2015, or access the information at: http://www.fda.gov/regulatoryinformation/dockets/default.htm.

    Docket: For access to the docket to read background documents or the electronic and written/paper comments received, go to http://www.regulations.gov and insert the docket number, found in brackets in the heading of this document, into the “Search” box and follow the prompts and/or go to the Division of Dockets Management, 5630 Fishers Lane, Rm. 1061, Rockville, MD 20852.

    Submit written requests for single copies of the guidance to the Office of Nutrition and Food Labeling (HFS-820), Center for Food Safety and Applied Nutrition, Food and Drug Administration, 5100 Paint Branch Pkwy., College Park, MD 20740. Send two self-addressed adhesive labels to assist that office in processing your request. See the SUPPLEMENTARY INFORMATION section for electronic access to the guidance.

    FOR FURTHER INFORMATION CONTACT:

    Carole Adler, Center for Food Safety and Applied Nutrition (HFS-820), Food and Drug Administration, 5100 Paint Branch Pkwy., College Park, MD 20740, 240-402-2371.

    SUPPLEMENTARY INFORMATION:

    I. Background

    We are announcing the availability of a final guidance for industry entitled “FDA's Policy on Declaring Small Amounts of Nutrients and Dietary Ingredients on Nutrition Labels.” We are issuing this guidance consistent with our good guidance practices regulation (21 CFR 10.115). The guidance represents the current thinking of FDA on this topic. It does not establish any rights for any person and is not binding on FDA or the public. You can use an alternative approach if it satisfies the requirements of the applicable statutes and regulations.

    In the Federal Register of July 30, 2015, we made available a draft guidance for industry entitled “FDA's Policy on Declaring Small Amounts of Nutrients and Dietary Ingredients on Nutrition Labels.” The draft guidance would explain to manufacturers of conventional foods and dietary supplements our policy on determining the amount to declare on the nutrition label for certain nutrients and dietary ingredients that are present in a small amount. We gave interested parties an opportunity to submit comments by September 28, 2015, for us to consider before beginning work on the final version of the guidance. We received a few comments on the draft guidance, yet most pertained to the Nutrition Facts label itself or to specific nutrients rather than our policy on the declaration of small amounts. We only made editorial changes to the guidance, which include updates to the list of nutrients in 21 CFR 101.9(g)(4) and (g)(5) consistent with the final rule entitled, “Food Labeling; Revision of the Nutrition and Supplement Facts Labels” that appeared in the Federal Register on May 27, 2016 (81 FR 33742). The guidance announced in this document finalizes the draft guidance dated July 2015.

    II. Electronic Access

    Persons with access to the Internet may obtain the guidance at either http://www.fda.gov/FoodGuidances or http://www.regulations.gov. Use the FDA Web site listed in the previous sentence to find the most current version of the guidance.

    Dated: June 24, 2016. Leslie Kux, Associate Commissioner for Policy.
    [FR Doc. 2016-15477 Filed 6-30-16; 8:45 am] BILLING CODE 4164-01-P
    DEPARTMENT OF THE TREASURY Alcohol and Tobacco Tax and Trade Bureau 27 CFR Part 16 [Docket No. TTB-2016-0006; T.D. TTB-138] RIN 1513-AC28 Civil Monetary Penalty Inflation Adjustment—Alcoholic Beverage Labeling Act AGENCY:

    Alcohol and Tobacco Tax and Trade Bureau, Treasury.

    ACTION:

    Interim final rule (Treasury decision); Request for comments.

    SUMMARY:

    This interim final rule implements the provisions of the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, with respect to the civil penalty provision of the Alcoholic Beverage Labeling Act of 1988 (ABLA). Specifically, this interim final rule increases the maximum civil monetary penalty for violations of the provisions of the ABLA from $10,000 to $19,787, in accordance with Federal law.

    DATES:

    The effective date of this interim final rule is July 1, 2016. Comments on this interim final rule must be received by August 30, 2016.

    ADDRESSES:

    Please send your comments on the interim final rule to one of the following addresses:

    http://www.regulations.gov (via the online comment form for this document as posted within Docket No. TTB-2016-0006 at Regulations.gov, the Federal e-rulemaking portal);

    U.S. Mail: Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, Washington, DC 20005; or

    Hand delivery/courier in lieu of mail: Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Suite 400, Washington, DC 20005.

    See the Public Participation section of this document for specific instructions and requirements for submitting comments.

    FOR FURTHER INFORMATION CONTACT:

    Andrew L. Malone, Public Guidance Program Manager, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, Washington, DC 20005; (202) 453-1039, ext. 188.

    SUPPLEMENTARY INFORMATION:

    Background Statutory Authority for Federal Civil Monetary Penalty Inflation Adjustments

    The Federal Civil Penalties Inflation Adjustment Act of 1990 (the Inflation Adjustment Act), Public Law 101-410, 104 Stat. 890, 28 U.S.C. 2461 note, requires the regular adjustment and evaluation of civil monetary penalties to maintain their deterrent effect and helps to ensure that penalty amounts imposed by the Federal Government are properly accounted for and collected. A “civil monetary penalty” is defined in the Inflation Adjustment Act as any penalty, fine, or other such sanction that is: (1) For a specific monetary amount as provided by Federal law, or has a maximum amount provided for by Federal law; (2) assessed or enforced by an agency pursuant to Federal law; and (3) assessed or enforced pursuant to an administrative proceeding or a civil action in the Federal courts.

    The Debt Collection Improvement Act of 1996 (the Improvement Act of 1996), Public Law 104-134, section 31001(s), 110 Stat. 1321, enacted on April 26, 1996, amended the Inflation Adjustment Act by requiring civil monetary penalties to be adjusted for inflation. Specifically, the Improvement Act of 1996 required, among other things, that the head of each Federal agency adjust each civil monetary penalty provided by law within the jurisdiction of the respective agency by the inflation adjustment described under section 5 of the Inflation Adjustment Act. The Improvement Act of 1996 required the adjustment of the civil monetary penalty to be done by regulation and published in the Federal Register.

    Under the Improvement Act of 1996, any increase in a civil monetary penalty made pursuant to the amendment applied only to violations which occur after the date the increase takes effect. The act also provided that the first adjustment of a penalty made pursuant to the amendment may not exceed 10 percent of such penalty.

    The Inflation Adjustment Act has been further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the Improvements Act of 2015), Public Law 114-74, section 701, 129 Stat. 584, enacted on November 2, 2015. The Improvements Act of 2015 changed the method agencies use to calculate inflation adjustments to civil monetary penalties, as well as the method and frequency of future adjustments. The Improvements Act of 2015 also instructed agencies to apply its method of calculating the inflation adjustment to the original statutory penalty, rather than to penalties as they were adjusted under the Improvement Act of 1996. To account for inflation that took place between the enactment of the original penalties and the enactment of the Improvements Act of 2015, agencies must make a “catch-up” first adjustment through an interim final rulemaking that is published no later than July 1, 2016, and takes effect no later than August 1, 2016. Agencies shall adjust civil monetary penalties no later than January 15 of every year thereafter. The Improvements Act of 2015 also provides that any increase in a civil monetary penalty shall apply only to civil monetary penalties, including those whose associated violation predated such an increase, which are assessed after the date the increase takes effect.

    As amended, the Inflation Adjustment Act provides that the inflation adjustment does not apply to civil monetary penalties under the Internal Revenue Code of 1986 or the Tariff Act of 1930.

    Alcoholic Beverage Labeling Act

    The Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the Federal Alcohol Administration Act (FAA Act) pursuant to section 1111(d) of the Homeland Security Act of 2002, codified at 6 U.S.C. 531(d). The Secretary has delegated various authorities through Treasury Department Order 120-01, dated December 10, 2013, (superseding Treasury Department Order 120-01, dated January 24, 2003), to the TTB Administrator to perform the functions and duties in the administration and enforcement of this law.

    The FAA Act contains the Alcoholic Beverage Labeling Act (ABLA) of 1988, Public Law 100-690, 27 U.S.C. 213-219a, which was enacted on November 18, 1988. Section 204 of the ABLA, codified in 27 U.S.C. 215, requires that a health warning statement appear on the labels of all containers of alcoholic beverages manufactured, imported, or bottled for sale or distribution in the United States, as well as on containers of alcoholic beverages that are manufactured, imported, bottled, or labeled for sale, distribution, or shipment to members or units of the U.S. Armed Forces, including those located outside the United States.

    The health warning statement requirement applies to containers of alcoholic beverages manufactured, imported, or bottled for sale or distribution in the United States on or after November 18, 1989. The statement reads as follows:

    GOVERNMENT WARNING: (1) According to the Surgeon General, women should not drink alcoholic beverages during pregnancy because of the risk of birth defects. (2) Consumption of alcoholic beverages impairs your ability to drive a car or operate machinery, and may cause health problems.

    Section 204 of the ABLA also specifies that the Secretary of the Treasury shall have the power to ensure the enforcement of the provisions of the ABLA and issue regulations to carry out them out. In addition, section 207 of the ABLA, codified in 27 U.S.C. 218, provides that any person who violates the provisions of the ABLA is subject to a civil penalty of not more than $10,000, with each day constituting a separate offense.

    Most of the civil monetary penalties administered by TTB are imposed by the Internal Revenue Code of 1986, and thus are not subject to the inflation adjustment mandated by the Inflation Adjustment Act. The only civil monetary penalty enforced by TTB that is subject to the inflation adjustment is the penalty imposed by the ABLA at 27 U.S.C. 218.

    Previous Civil Monetary Penalty Adjustment for Violations of the ABLA

    In accordance with the Improvement Act of 1996, TTB's predecessor agency, the Bureau of Alcohol, Tobacco, and Firearms (ATF), issued a final rule that was published in the Federal Register and effective on October 23, 1996 (61 FR 54935, T.D. ATF-385), that adjusted the civil monetary penalty provision by increasing the maximum penalty for violations of the ABLA from $10,000 to $11,000.

    The TTB regulations implementing the ABLA are found in 27 CFR part 16, Alcoholic Beverage Health Warning Statement. The 1996 final rule established a new section, 27 CFR 16.33, addressing the penalty provision. Specifically, paragraph (a) of § 16.33 codified the statutory $10,000 penalty set forth in the ABLA, and paragraph (b) addressed the Improvement Act of 1996 requirement, stating that the penalty provided for in paragraph (a) shall be periodically adjusted in accordance with inflation, with the civil penalty for violations occurring after October 23, 1996, not to exceed $11,000.

    As noted earlier, the Improvements Act of 2015 changed the Inflation Adjustment Act's method of calculating the inflation adjustment and the method and frequency of future adjustments. Accordingly, this interim final rule revises § 16.33 to reflect the amendments to the Inflation Adjustment Act.

    Cost-of-Living Adjustment

    As mentioned earlier, the ABLA contains a maximum civil monetary penalty, rather than a range of minimum and maximum civil monetary penalties. For such penalties, the Inflation Adjustment Act, as amended, provides that the first adjustment will be determined by increasing the maximum civil monetary penalty by the cost-of-living adjustment. For the first adjustment after the date of enactment of the Improvements Act of 2015, the cost-of-living adjustment means the percentage (if any) for each civil monetary penalty by which the Consumer Price Index for all-urban consumers (CPI-U) for the month of October, 2015, exceeds the CPI-U for the month of October of the calendar year in which the amount of such civil penalty was last established or adjusted under a provision of law other than the Inflation Adjustment Act. This means that the inflation adjustment must be applied to the original statutory penalty (for the ABLA, $10,000), and not to any increases promulgated under the Inflation Adjustment Act, as amended by the Improvement Act of 1996. Any increase determined under section 5 of the Inflation Adjustment Act, as amended, must be rounded to the nearest multiple of $1.

    The CPI-U in October 1988, the year in which the ABLA was enacted and its civil monetary penalty was established, was 120.2, and the CPI-U for October 2015 was 237.838. The rate of inflation for the period between October 1988 and October 2015 is therefore 97.8686 percent. When applied to the original ABLA civil monetary penalty of $10,000, this rate of inflation yields a raw (unrounded) inflation adjustment of $9,786.86. Rounded to the nearest dollar, the inflation adjustment is $9,787, meaning that the new maximum civil monetary penalty for violations of the ABLA will be $19,787.

    The Inflation Adjustment Act, as amended, provides that the amount of increase in the initial adjustment of a civil monetary penalty shall not exceed 150 percent of the amount of that civil monetary penalty on the date of enactment of the Improvements Act of 2015; this penalty adjustment does not exceed the maximum. The Inflation Adjustment Act, as amended, also provides that, for the initial adjustment, an agency may adjust the amount of a civil monetary penalty by less than the otherwise required amount if the agency, after publishing a notice of proposed rulemaking and providing an opportunity for comment, determines that (1) increasing the civil monetary penalty by the otherwise required amount will have a negative economic impact or (2) the social costs of increasing the civil monetary penalty by the otherwise required amount outweigh the benefits. The Office of Management and Budget must concur with such a determination. However, TTB has determined that neither of these circumstances apply to the initial cost-of-living adjustment described above.

    Notice of Future Increases

    After the initial “catch-up” adjustment, section 4 of the Inflation Adjustment Act, as amended, requires heads of agencies to adjust civil monetary penalties and to make the adjustments notwithstanding section 553 of title 5, United States Code. Section 553 of title 5 is the rulemaking provision of the Administrative Procedure Act, which requires notice-and-comment rulemaking for certain agency actions and requires agencies to provide interested parties the right to petition for the issuance, amendment, or repeal of a rule.

    Until the Improvements Act of 2015, the Inflation Adjustment Act required agencies to adjust their civil monetary penalties by regulation. For all adjustments after the initial adjustment via interim final rule, the amendments in the Improvements Act of 2015 allow agencies to apply the cost-of-living adjustment formula in the Inflation Adjustment Act and publish the resulting civil monetary penalty without establishing it by regulation. As the Inflation Adjustment Act, as amended, now requires annual cost-of-living adjustments, to be applied no later than January 15 of every year after 2016, TTB has determined that it is most expedient to publish the new penalty on its Web site, rather than in § 16.33. TTB will announce future adjustments to the maximum civil monetary penalty in the ABLA through notices published in the Federal Register and update its Web site when adjustments are announced.

    TTB Determination

    Accordingly, this interim final rule revises § 16.33 to reflect the changes to the Inflation Adjustment Act made by the Improvements Act of 2015. Paragraph (a) of § 16.33 states that the ABLA provides that any person who violates the provisions of 27 CFR part 16 shall be subject to a civil penalty of not more than $10,000. However, pursuant to the provisions of the Inflation Adjustment Act, as amended, the civil penalty provided in the ABLA is subject to periodic cost-of-living adjustment. Accordingly, any person who violates the provisions of 27 CFR part 16 shall be subject to a civil penalty of not more than the amount listed at https://www.ttb.gov/regulation_guidance/ablapenalty.html. Paragraph (a) also states that each day shall constitute a separate offense.

    Paragraph (b) of the revised § 16.33 indicates that TTB will provide notice in the Federal Register and at the Web site above of cost-of-living adjustments to the civil penalty for violations of 27 CFR part 16.

    Paragraph (c) of the revised § 16.33 reflects the changes the Improvements Act of 2015 made with respect to the applicability of adjusted penalties. As mentioned earlier, before the Improvements Act of 2015, an adjusted penalty only applied to violations that occurred after the date the increase took effect; this language had been reflected in the previous § 16.33(b). Consistent with section 6 of the Inflation Adjustment Act, as amended, new paragraph (c) states that any increase in the penalty described in paragraph (a) shall apply only to penalties, including those whose associated violation predated such an increase, which are assessed after the date the increase takes effect. An increase will take effect on the date a notice is published in the Federal Register announcing the increase. The effective date of the increase also will be listed at the Web site mentioned above.

    Public Participation Comments Invited

    TTB invites comments from interested members of the public on the cost-of-living adjustment to the ABLA civil monetary penalty.

    Submitting Comments

    You may submit comments on this proposed rule by using one of the following three methods (please note that TTB has a new address for comments submitted by U.S. Mail):

    Federal e-Rulemaking Portal: You may send comments via the online comment form posted with this proposed rule within Docket No. TTB-2016-0006 on “Regulations.gov,” the Federal e-rulemaking portal, at http://www.regulations.gov. A direct link to that docket is available under T.D. TTB-138 on the TTB Web site at http://www.ttb.gov/rrd/decisions.shtml. Supplemental files may be attached to comments submitted via Regulations.gov. For complete instructions on how to use Regulations.gov, visit the site and click on the “Help” tab.

    U.S. Mail: You may send comments via postal mail to the Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, Washington, DC 20005.

    Hand Delivery/Courier: You may hand-carry your comments or have them hand-carried to the Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Suite 400, Washington, DC 20005.

    Please submit your comments by the closing date shown above in this proposed rule. Your comments must reference T.D. TTB-138 and include your name and mailing address. Your comments also must be made in English, be legible, and be written in language acceptable for public disclosure. TTB does not acknowledge receipt of comments, and TTB considers all comments as originals.

    In your comment, please clearly indicate if you are commenting on your own behalf or on behalf of an association, business, or other entity. If you are commenting on behalf of an entity, your comment must include the entity's name, as well as your name and position title. If you comment via Regulations.gov, please enter the entity's name in the “Organization” blank of the online comment form. If you comment via postal mail or hand delivery/courier, please submit your entity's comment on letterhead.

    You may also write to the Administrator before the comment closing date to ask for a public hearing. The Administrator reserves the right to determine whether to hold a public hearing.

    Confidentiality

    All submitted comments and attachments are part of the public record and subject to disclosure. Do not enclose any material in your comments that you consider to be confidential or inappropriate for public disclosure.

    Public Disclosure

    TTB will post, and you may view, copies of this interim final rule, selected supporting materials, and any online or mailed comments received about this interim final rule within Docket No. TTB-2016-0006 on the Federal e-rulemaking portal, Regulations.gov, at http://www.regulations.gov. A direct link to that docket is available on the TTB Web site at http://www.ttb.gov/rrd/decisions.shtml under T.D. TTB-138. You may also reach the relevant docket through the Regulations.gov search page at http://www.regulations.gov. For information on how to use Regulations.gov, click on the site's “Help” tab.

    All posted comments will display the commenter's name, organization (if any), city, and State, and, in the case of mailed comments, all address information, including email addresses. TTB may omit voluminous attachments or material that the Bureau considers unsuitable for posting.

    You may also view copies of this interim final rule and any electronic or mailed comments that TTB receives about this interim final rule by appointment at the TTB Information Resource Center, 1310 G Street NW., Washington, DC 20005. You may also obtain copies at 20 cents per 8.5- x 11-inch page. Contact TTB's information specialist at the above address or by telephone at 202-453-2270 to schedule an appointment or to request copies of comments or other materials.

    Administrative Procedure Act

    TTB is issuing this interim final rule without prior notice and opportunity for public comment in accordance with provisions of the Improvements Act of 2015, which directs agencies to make the “catch-up” adjustment through interim final rulemaking. In addition, TTB finds good cause under 5 U.S.C. 553(d)(3) to dispense with the effective date limitation in 5 U.S.C. 553(d) because this interim final rule merely implements the provisions of the Inflation Adjustment Act, as amended, and does not change TTB's interpretation of any regulation or the requirements of any recordkeeping provision.

    Regulatory Flexibility Act

    Because the agency was not required to publish a notice of proposed rulemaking, the provisions of the Regulatory Flexibility Act relating to an initial and final regulatory analysis (5 U.S.C. 603, 604) are not applicable to this interim final rule. Accordingly, a regulatory flexibility analysis is not required.

    Executive Order 12866

    It has been determined that this interim final rule is not a significant regulatory action as defined in Executive Order 12866. Therefore, a regulatory assessment is not required.

    Drafting Information

    Andrew L. Malone of the Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, drafted this document.

    List of Subjects in 27 CFR Part 16

    Alcohol and alcoholic beverages, Consumer protection, Health, Labeling, Penalties.

    Amendment to the Regulations

    For the reasons set forth in the preamble, TTB is amending 27 CFR, chapter I, part 16 as follows:

    PART 16—Alcoholic Beverage Health Warning Statement 1. The authority citation for part 16 continues to read as follows: Authority:

    27 U.S.C. 205, 215, 218; 28 U.S.C. 2461 note.

    2. Section 16.33 is revised to read as follows:
    § 16.33 Civil penalties; adjustments.

    (a) General. The Act provides that any person who violates the provisions of this part shall be subject to a civil penalty of not more than $10,000. However, pursuant to the provisions of the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended, this civil penalty is subject to periodic cost-of-living adjustment. Accordingly, any person who violates the provisions of this part shall be subject to a civil penalty of not more than the amount listed at https://www.ttb.gov/regulation_guidance/ablapenalty.html. Each day shall constitute a separate offense.

    (b) Notice of cost-of-living adjustment. TTB will provide notice in the Federal Register and at the Web site referenced in paragraph (a) of this section of cost-of-living adjustments to the civil penalty for violations of this part.

    (c) Applicability of increases in penalty. Any increase in the penalty described in paragraph (a) of this section shall apply only to penalties, including those whose associated violation predated such an increase, which are assessed after the date the increase takes effect. An increase will take effect on the date a notice is published in the Federal Register announcing the increase. The effective date of the increase also will be listed at the Web site in paragraph (a) of this section.

    Dated: May 16, 2016. Mary G. Ryan, Acting Administrator. Approved: May 27, 2016. Timothy E. Skud, Deputy Assistant Secretary, (Tax, Trade, and Tariff Policy).
    [FR Doc. 2016-15636 Filed 6-30-16; 8:45 am] BILLING CODE 4810-31-P
    DEPARTMENT OF JUSTICE Office of the Attorney General 28 CFR Part 0 [AG Order No. 3691-2016] Office for Access to Justice AGENCY:

    Department of Justice.

    ACTION:

    Final rule.

    SUMMARY:

    This rule amends the Code of Federal Regulations to reflect the establishment of the Office for Access to Justice as a distinct component of the Department of Justice. The Office for Access to Justice was created by the Attorney General to address the access-to-justice crisis in the criminal and civil justice systems. The office's mission is to help ensure that the justice system is efficient, fair, and accessible to all, irrespective of an individual's wealth and status. This rule sets forth the Office's organization, mission and functions.

    DATES:

    This rule is effective July 1, 2016.

    FOR FURTHER INFORMATION CONTACT:

    Lisa Foster, Director, Office for Access to Justice, U.S. Department of Justice, RFK Main Justice Building, Room 3340, 950 Pennsylvania Avenue NW., Washington, DC 20530. Telephone: (202) 514-5312.

    SUPPLEMENTARY INFORMATION: Background

    In 2010, the Attorney General established the Office for Access to Justice to address the access-to-justice crisis in the criminal and civil justice systems. The office's mission is to help ensure that the justice system is efficient, fair, and accessible to all, irrespective of an individual's wealth and status. Its staff works within the Department of Justice, across federal agencies, and with state, local, and tribal justice system stakeholders to increase access to counsel and legal assistance and to improve the justice system for people who are unable to afford lawyers. This rule reflects the establishment of the Office for Access to Justice as a distinct component of the Department of Justice, and sets forth the office's organization, mission, and functions.

    Administrative Procedure Act

    This rule is a rule of agency organization and procedure, and relates to the internal management of the Department of Justice. It is therefore exempt from the requirements of notice and comment and a delayed effective date. 5 U.S.C. 553(b), (d).

    Regulatory Flexibility Act

    The Attorney General, in accordance with the Regulatory Flexibility Act (5 U.S.C. 605(b)), has reviewed this rule and by approving it certifies that this rule will not have a significant economic impact on a substantial number of small entities because it pertains to personnel and administrative matters affecting the Department. Further, a Regulatory Flexibility Analysis was not required to be prepared for this final rule since the Department was not required to publish a general notice of proposed rulemaking for this matter. See 5 U.S.C. 604(a).

    Executive Orders 12866 and 13563: Regulatory Review

    This action has been drafted and reviewed in accordance with Executive Order 12866, “Regulatory Planning and Review,” section 1(b), The Principles of Regulation, and in accordance with Executive Order 13563, “Improving Regulations and Regulatory Review,” section 1(b), General Principles of Regulation. This action is limited to agency organization, management, and personnel matters and therefore is not a “regulation” or “rule” under Executive Order 12866. Id. § 3(d)(3). Accordingly, this action has not been reviewed by the Office of Management and Budget.

    Executive Order 13132: Federalism

    This rule will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. Therefore, in accordance with section 6 of Executive Order 13132, it is determined that this rule does not have sufficient federalism implications to warrant the preparation of a federalism summary impact statement.

    Executive Order 12988: Civil Justice Reform

    This rule meets the applicable standards set forth in sections 3(a) and 3(b)(2) of Executive Order 12988.

    Unfunded Mandates Reform Act of 1955

    This rule will not result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100,000,000 or more in any one year, and it does not establish requirements that might significantly or uniquely affect small governments. Therefore, no actions were deemed necessary under the provisions of the Unfunded Mandates Reform Act of 1995.

    Congressional Review Act

    This action pertains to agency management, personnel, and organization and does not substantially affect the rights or obligations of non-agency parties and, accordingly, is not a “rule” as that term is used by the Congressional Review Act (Subtitle E of the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA)). See 5 U.S.C. 804(3). Therefore, the reporting requirement of 5 U.S.C. 801 does not apply.

    Plain Language Instructions

    We try to write clearly. Suggestions about how to improve the clarity of this rule may be submitted in writing to Lisa Foster, Director, Office for Access to Justice.

    List of Subjects in 28 CFR Part 0

    Authority delegation (Government agencies), Government employees, Organization and functions (Government agencies), Privacy, Reporting and recordkeeping requirements, Whistleblowing.

    Accordingly, by virtue of the authority vested in me as Attorney General, including 5 U.S.C. 301 and 28 U.S.C. 509, 510, part 0 of title 28 of the Code of Federal Regulations is amended as follows:

    PART 0—ORGANIZATION OF THE DEPARTMENT OF JUSTICE 1. The authority citation for part 0 continues to read as follows: Authority:

    5 U.S.C. 301; 28 U.S.C. 509, 510, 515-519.

    2. In § 0.1, under the heading “Offices”, add the title “Office for Access to Justice” to the end of the list. 3. Add Subpart F-1 to read as follows: Subpart F-1—Office for Access to Justice
    § 0.33 Office for Access to Justice.

    The Office for Access to Justice shall be headed by a Director appointed by the Attorney General. The principal responsibilities of the Office shall be to plan, develop, and coordinate the implementation of access to justice policy initiatives of high priority to the Department and the executive branch, including in the areas of criminal indigent defense and civil legal aid. In addition, the Director shall:

    (a) Promote uniformity of Department of Justice and government-wide policies and litigation positions relating to equal access to justice;

    (b) Examine proposed legislation, proposed rules, and other policy proposals to ensure that access to justice principles are properly considered in the development of policy; and

    (c) Perform such other duties and functions as may be authorized by law or directed by the Attorney General, Deputy Attorney General, or Associate Attorney General.

    Dated: June 24, 2016. Loretta E. Lynch, Attorney General.
    [FR Doc. 2016-15574 Filed 6-30-16; 8:45 am] BILLING CODE 4410-PN-P
    DEPARTMENT OF THE INTERIOR Bureau of Ocean Energy Management 30 CFR Parts 550 and 553 [Docket ID: BOEM-2016-0055; MMAA104000] RIN 1010-AD95 Oil and Gas and Sulphur Operations in the Outer Continental Shelf—Civil Penalties Inflation Adjustments AGENCY:

    Bureau of Ocean Energy Management, Interior.

    ACTION:

    Interim final rule.

    SUMMARY:

    This rule adjusts the level of civil monetary penalties contained in the Bureau of Ocean Energy Management (BOEM) regulations pursuant to the Outer Continental Shelf Lands Act, the Oil Pollution Act of 1990, the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and Office of Management and Budget guidance.

    DATES:

    This rule is effective on August 1, 2016. Comments will be accepted until August 30, 2016.

    ADDRESSES:

    Address all comments regarding this proposed rule to BOEM by any of the following methods:

    Federal Rulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments.

    U.S. Postal Service or Other Mail Delivery Service: Address to Robert Sebastian, Office of Policy, Regulation and Analysis (OPRA), BOEM, Department of the Interior, 1849 C Street NW., Mailstop 5238, Washington, DC 20240.

    • Hand delivery to Office of Policy, Regulation and Analysis, BOEM, Department of the Interior, at 1849 C Street NW., Room 5249, Washington, DC 20240.

    Please include your name, return address, and phone number and/or email address, so we can contact you if we have questions regarding your submission.

    FOR FURTHER INFORMATION CONTACT:

    Robert Sebastian, Office of Policy, Regulation and Analysis at (504) 736-2761 or email at [email protected]

    SUPPLEMENTARY INFORMATION: I. Background II. Calculation of Adjustments III. Procedural Requirements A. Regulatory Planning and Review (E.O. 12866 and 13563) B. Regulatory Flexibility Act C. Small Business Regulatory Enforcement Fairness Act D. Unfunded Mandates Reform Act E. Takings (E.O. 12630) F. Federalism (E.O. 13132) G. Civil Justice Reform (E.O. 12988) H. Consultation with Indian Tribes (E.O. 13175 and Departmental Policy) I. Paperwork Reduction Act J. National Environmental Policy Act K. Effects on the Energy Supply (E.O. 13211) L. Clarity of this Regulation M. Administrative Procedure Act I. Background

    The Outer Continental Shelf Lands Act (OCSLA) directs the Secretary of the Interior to adjust the OCSLA maximum civil penalty amount at least once every three years to reflect any increase in the Consumer Price Index to account for inflation. 43 U.S.C. 1350(b)(1). The Federal Civil Penalties Inflation Adjustment Act of 1990 (Public Law 104-410) (FCPIA of 1990) required that all civil monetary penalties, including the OCSLA maximum civil penalty amount, be adjusted at least once every four years. Pursuant to OCSLA and the FCPIA of 1990, the OCSLA maximum civil penalty amount was last adjusted in 2011. 76 FR 38,294 (June 30, 2011). After running the computations, the Department of the Interior determined that adjustments of the OCSLA maximum civil penalty amount were not warranted in 2014 and 2015.

    Similarly, the Oil Pollution Act (OPA) of 1990 authorizes the Secretary of the Interior to impose civil penalties for failure to comply with financial responsibility regulations that implement OPA. The FCPIA of 1990 required that all civil monetary penalties, including the OPA maximum civil penalty amount, be adjusted at least once every four years. Pursuant to the FCPIA of 1990, the OPA maximum civil penalty amount was adjusted for the first time in 2007, 72 FR 8,897 (Feb. 28, 2007), and again in 2011, 76 FR 38,294 (June 30, 2011). After running the computations, the Department of the Interior determined that adjustments of the OPA maximum civil penalty amount were not warranted in 2014 and 2015.

    On November 2, 2015, the President signed into law the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Sec. 701 of Public Law 114-74) (FCPIA of 2015), which further amended the FCPIA of 1990. The FCPIA of 2015 requires Federal agencies to adjust the level of civil monetary penalties with an initial “catch-up” adjustment, if warranted, through rulemaking, and then to make subsequent annual adjustments for inflation. The purpose of these adjustments is to maintain the deterrent effect of civil penalties and to further the policy goals of the underlying statutes.

    Pursuant to OCSLA and the FCPIA of 2015, this rule adjusts the following maximum civil monetary penalties per day per violation:

    CFR citation Description of the penalty Current
  • maximum
  • penalty
  • Multiplier Adjusted
  • maximum
  • penalty
  • 30 CFR 550.1403 Failure to comply with regulatory and contractual obligations $40,000 1.05042 $42,017 30 CFR 553.51(a) Failure to comply with financial responsibility requirements * 25,000 1.78156 44,539 * The current OPA maximum civil penalty amount provided in 30 CFR 553.51(a) is $30,000. However, the FCPIA of 2015 instructs BOEM to use the OPA maximum civil penalty amount as last adjusted by a provision of law other than the FCPIA of 1990 when calculating the 2016 civil penalty adjustment. Therefore, BOEM used the OPA maximum civil penalty amount of $25,000, which was established by OPA in 1990, when calculating the 2016 civil penalty adjustment.
    II. Calculation of Adjustments

    The Office of Management and Budget (OMB) issued guidance on calculating the civil monetary penalty adjustments pursuant to the FCPIA of 2015. See February 24, 2016, Memorandum for the Heads of Executive Departments and Agencies, from Shaun Donovan, Director, Office of Management and Budget, subject: Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. Under this guidance, the Department of the Interior has identified applicable civil monetary penalties and calculated the necessary adjustments. A civil monetary penalty is any assessment with a dollar amount that is levied for a violation of a Federal civil statute or regulation, and is assessed or enforceable through a civil action in Federal court or an administrative proceeding. A civil monetary penalty does not include a penalty levied for violation of a criminal statute, or fees for services, licenses, permits, or other regulatory review. The calculated adjustment for 2016 is based on the percent change between the Consumer Price Index for all Urban Consumers (CPI-U) for the month of October in the calendar year of the previous adjustment (or in the year of establishment, if subsequent adjustments were made pursuant to the FCPIA of 1990) and the October 2015 CPI-U.

    For 2016, OCSLA and the FCPIA of 2015 require that BOEM adjust the OCSLA maximum civil penalty amount and provide the adjustment timing. In computing the new OCSLA maximum civil penalty amount, since the amount was last adjusted in 2011, BOEM divided the October 2015 CPI-U by the October 2011 CPI-U (237.838/226.421). This resulted in a multiplying factor of 1.05042. The existing OCSLA maximum civil penalty amount ($40,000) was multiplied by the multiplying factor (40,000 × 1.05042 = 42,016.80). The FCPIA of 2015 requires that the OCSLA maximum civil penalty amount be rounded to the nearest $1.00 at the end of the calculation process. Accordingly, the adjusted OCSLA maximum civil penalty is $42,017. This increase in the OCSLA maximum civil penalty amount does not exceed 150 percent of the OCSLA maximum civil penalty amount as of November 2, 2015, and thus complies with the FCPIA of 2015. Also, pursuant to the FCPIA of 2015, the increase in the OCSLA maximum civil penalty amount applies to civil penalties assessed after the date the increase takes effect, even when the associated violation(s) predates such increase.

    For 2016, the FCPIA of 2015 requires that BOEM adjust the OPA maximum civil penalty amount and provides the adjustment timing. The OPA maximum civil penalty amount was last adjusted pursuant to the FPCIA of 1990 in 2011 ($30,000). However, the FCPIA of 2015 instructs BOEM to use the OPA maximum civil penalty amount as last adjusted by a provision of law other than the FCPIA of 1990 when calculating the 2016 civil penalty adjustment. The OPA maximum civil penalty was last adjusted by a provision of law other than the FCPIA of 1990 when it was established by OPA in 1990. Therefore, in computing the new OPA maximum civil penalty amount, BOEM divided the October 2015 CPI-U by the October 1990 CPI-U (237.838/133.5). This resulted in a multiplying factor of 1.78156. The statutory OPA maximum civil penalty amount ($25,000) was multiplied by the multiplying factor (25,000 × 1.78156 = 44,539.00). The FCPIA of 2015 requires that the OPA maximum civil penalty amount be rounded to the nearest $1.00 at the end of the calculation process. Accordingly, the adjusted OPA maximum civil penalty is $44,539. This increase in the OPA maximum civil penalty amount does not exceed 150 percent of the OPA maximum civil penalty amount as of November 2, 2015, and thus complies with the FCPIA of 2015. Also, pursuant to the FCPIA of 2015, the increase in the OPA maximum civil penalty amount applies to civil penalties assessed after the date the increase takes effect, even when the associated violation(s) predates such increase.

    III. Procedural Requirements A. Regulatory Planning and Review (E.O. 12866 and 13563)

    Executive Order 12866 provides that the Office of Information and Regulatory Affairs in the Office of Management and Budget will review all significant rules. The Office of Information and Regulatory Affairs has determined that this rule is not significant.

    Executive Order 13563 reaffirms the principles of E.O. 12866 while calling for improvements in the nation's regulatory system to promote predictability, to reduce uncertainty, and to use the best, most innovative, and least burdensome tools for achieving regulatory ends. The executive order directs agencies to consider regulatory approaches that reduce burdens and maintain flexibility and freedom of choice for the public where these approaches are relevant, feasible, and consistent with regulatory objectives. E.O. 13563 emphasizes further that regulations must be based on the best available science and that the rulemaking process must allow for public participation and an open exchange of ideas. We have developed this rule in a manner consistent with these requirements, to the extent permitted by statute.

    B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) requires an agency to prepare a regulatory flexibility analysis for all rules unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. The RFA applies only to rules for which an agency is required to first publish a proposed rule. See 5 U.S.C. 603(a) and 604(a). The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 requires agencies to adjust civil penalties with an initial catch-up adjustment through an interim final rule. An interim final rule does not include first publishing a proposed rule. Thus, the RFA does not apply to this rulemaking.

    C. Small Business Regulatory Enforcement Fairness Act

    This rule is not a major rule under 5 U.S.C. 804(2), the Small Business Regulatory Enforcement Fairness Act. This rule:

    (a) Will not have an annual effect on the economy of $100 million or more.

    (b) Will not cause a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions.

    (c) Will not have significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of U.S.-based enterprises to compete with foreign-based enterprises.

    D. Unfunded Mandates Reform Act

    This rule does not impose an unfunded mandate on State, local, or tribal governments, or the private sector of more than $100 million per year. The rule does not have a significant or unique effect on State, local, or tribal governments or the private sector. A statement containing the information required by the Unfunded Mandates Reform Act (2 U.S.C. 1531 et seq.) is not required.

    E. Takings (E.O. 12630)

    This rule does not effect a taking of private property or otherwise have takings implications under Executive Order 12630. A takings implication assessment is not required.

    F. Federalism (E.O. 13132)

    Under the criteria in section 1 of Executive Order13132, this rule does not have sufficient federalism implications to warrant the preparation of a federalism summary impact statement. A federalism summary impact statement is not required.

    G. Civil Justice Reform (E.O. 12988)

    This rule complies with the requirements of Executive Order 12988. Specifically, this rule:

    (a) Meets the criteria of section 3(a) requiring that all regulations be reviewed to eliminate errors and ambiguity and be written to minimize litigation; and

    (b) Meets the criteria of section 3(b)(2) requiring that all regulations be written in clear language and contain clear legal standards.

    H. Consultation With Indian Tribes (E.O. 13175 and Departmental Policy)

    The Department of the Interior strives to strengthen its government-to-government relationship with Indian tribes through a commitment to consultation with Indian tribes and recognition of their right to self-governance and tribal sovereignty. We have evaluated this rule under the Department's consultation policy, under Departmental Manual Part 512 Chapters 4 and 5, and under the criteria in Executive Order 13175 and have determined that it has no substantial direct effects on federally recognized Indian tribes and that consultation under the Department's tribal consultation policy is not required.

    I. Paperwork Reduction Act

    This rule does not contain information collection requirements, and a submission to the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. 3501 et seq.) is not required. We may not conduct or sponsor and you are not required to respond to a collection of information unless it displays a currently valid OMB control number.

    J. National Environmental Policy Act

    This rule does not constitute a major Federal action significantly affecting the quality of the human environment. A detailed statement under the National Environmental Policy Act of 1969 (NEPA) is not required because the rule is covered by a categorical exclusion (see 43 CFR 46.210(i).). This rule is excluded from the requirement to prepare a detailed statement because it is a regulation of an administrative nature. We have also determined that the rule does not involve any of the extraordinary circumstances listed in 43 CFR 46.215 that would require further analysis under NEPA.

    K. Effects on the Energy Supply (E.O. 13211)

    This rule is not a significant energy action under the definition in Executive Order 13211. A Statement of Energy Effects is not required.

    L. Clarity of This Regulation

    We are required by Executive Orders 12866 (section 1(b)(12)), 12988 (section 3(b)(1)(B)), and 13563 (section 1(a)), and by the Presidential Memorandum of June 1, 1998, to write all rules in plain language. This means that each rule we publish must:

    (a) Be logically organized;

    (b) Use the active voice to address readers directly;

    (c) Use common, everyday words and clear language rather than jargon;

    (d) Be divided into short sections and sentences; and

    (e) Use lists and tables wherever possible.

    If you feel that we have not met these requirements, send us comments by one of the methods listed in the ADDRESSES section. Your comments should be as specific as possible. For example, you should tell us the numbers of the sections or paragraphs that you find unclear, which sections or sentences are too long, the sections where you feel lists or tables would be useful, etc.

    M. Administrative Procedure Act

    The FCPIA of 2015 requires agencies to publish interim final rules by July 1, 2016, with an effective date for the adjusted penalties of no later than August 1, 2016. To comply with the FCPIA of 2015, we are issuing these regulations as an interim final rule and are requesting comments post-promulgation. The Administrative Procedure Act (APA) provides that, when an agency for good cause finds that “notice and public procedure . . . are impracticable, unnecessary, or contrary to the public interest,” the agency may issue a rule without providing notice and an opportunity for prior public comment. 5 U.S.C. 553(b). BOEM finds that there is good cause to promulgate this rule without first providing for public comment. It would not be practicable to meet the deadlines imposed by the FCPIA of 2015 if we were to first publish a proposed rule, allow the public sufficient time to submit comments, analyze the comments, and publish a final rule. Also, BOEM is promulgating this final rule to implement the statutory directive in the FCPIA of 2015, which requires agencies to publish an interim final rule and to update the civil penalty amounts by applying a specified formula. BOEM has no discretion to vary the amount of the adjustment to reflect any views or suggestions provided by commenters, so notice and comment is unnecessary. Accordingly, it would serve no purpose to provide an opportunity for pre-promulgation public comment on this rule. Thus, BOEM finds pre-promulgation notice and public comment to be impracticable and unnecessary.

    List of Subjects 30 CFR Part 550

    Administrative practice and procedure, Continental shelf, environmental impact statements, environmental protection, federal lands, government contracts, investigations, oil and gas exploration, outer continental shelf, penalties, pipelines, mineral resources, rights-of-way, reporting and recordkeeping requirements, sulfur.

    30 CFR Part 553

    Administrative practice and procedure, Continental shelf, Financial responsibility, OCS, Oil and gas exploration, Oil pollution, Liability, Limit of liability, Penalties, Pipelines, Rights-of-way, Reporting and recordkeeping requirements, Surety bonds, Treasury securities.

    Dated; June 24, 2016. Janice M. Schneider, Assistant Secretary—Land and Minerals Management.

    For the reasons stated in the preamble, the BOEM amends 30 CFR parts 550 and 553 as follows:

    PART 550—OIL AND GAS AND SULPHUR OPERATIONS IN THE OUTER CONTINENTAL SHELF 1. The authority citation for part 550 is revised to read as follows: Authority:

    30 U.S.C. 1751; 31 U.S.C. 9701; 43 U.S.C. 1334.

    2. Revise § 550.1403 to read as follows:
    § 550.1403 What is the maximum civil penalty?

    The maximum civil penalty is $42,017 per day per violation.

    PART 553—OIL SPILL FINANCIAL RESPONSIBILITY FOR OFFSHORE FACILITIES 3. The authority citation for part 553 is revised to read as follows: Authority:

    33 U.S.C. 2704, 2716; E.O. 12777, as amended.

    4. In § 553.51, revise paragraph (a) to read as follows:
    § 553.51 What are the penalties for not complying with this part?

    (a) If you fail to comply with the financial responsibility requirements of OPA at 33 U.S.C. 2716 or with the requirements of this part, then you may be liable for a civil penalty of up to $44,539 per COF per day of violation (that is, each day a COF is operated without acceptable evidence of OSFR).

    [FR Doc. 2016-15607 Filed 6-30-16; 8:45 am] BILLING CODE 4310-MR-P
    DEPARTMENT OF THE TREASURY Fiscal Service 31 CFR Part 356 Sale and Issue of Marketable Book-Entry Treasury Bills, Notes, and Bonds AGENCY:

    Fiscal Service, Treasury.

    ACTION:

    Final rule.

    SUMMARY:

    The Department of the Treasury is making non-substantive technical corrections to its marketable securities auction rules.

    DATES:

    Effective July 1, 2016.

    FOR FURTHER INFORMATION CONTACT:

    Lori Santamorena, Kurt Eidemiller, or Kevin Hawkins, Government Securities Regulations Staff, Bureau of the Fiscal Service, Department of the Treasury, (202) 504-3632 or email us at [email protected]

    SUPPLEMENTARY INFORMATION:

    We are making non-substantive technical corrections to §§ 356.2, 356.31, and appendix B to part 356. The amendments re-designate cross references to other parts of the rules, revise the introductory text of a paragraph, and restate a variable.

    Procedural Requirements

    Administrative Procedure Act. Because this final rule relates to public contracts and procedures for United States securities, the notice, public comment, and delayed effective date provisions of the Administrative Procedure Act are inapplicable, pursuant to 5 U.S.C. 553(a)(2).

    List of Subjects in 31 CFR Part 356

    Banks, banking, Bonds, Federal Reserve System, Government securities, Reporting and recordkeeping requirements, Securities.

    Text of Amendments

    Accordingly, 31 CFR part 356 is amended by making the following technical amendments:

    PART 356—SALE AND ISSUE OF MARKETABLE BOOK-ENTRY TREASURY BILLS, NOTES, AND BONDS (DEPARTMENT OF THE TREASURY CIRCULAR, FISCAL SERVICE SERIES NO. 1-93) 1. The authority citation for part 356 continues to read as follows: Authority:

    5 U.S.C. 301; 31 U.S.C. 3102, et seq.; 12 U.S.C. 391.

    § 356.2 [Amended]
    2. Section 356.2 is amended in the last sentence of the definition of “accrued interest” by removing the reference to “paragraph C” and adding in its place “paragraph D” and in the last sentence of paragraph (2) in the definition of “adjusted value” by removing the reference to “section IV” and adding in its place “section V.”
    § 356.31 [Amended]
    3. Section 356.31 is amended in the last sentences of paragraphs (c)(3)(i) and (iii) by removing the reference to “section IV” and adding in its place “section V.”
    4. Appendix B to part 356 is amended by removing two paragraphs of introductory text following the table of contents and adding one paragraph in its place, and revising Section IV, subsection D, paragraphs (a), (b), and (c) to read as follows: Appendix B to Part 356—Formulas and Tables

    The examples in this appendix are given for illustrative purposes only and are in no way a prediction of interest rates on any bills, notes, or bonds issued under this part. In some of the following examples, we use intermediate rounding for ease in following the calculations.

    IV. * * *

    D. * * *

    ER01JY16.004
    David A. Lebryk, Fiscal Assistant Secretary.
    [FR Doc. 2016-15248 Filed 6-30-16; 8:45 am] BILLING CODE 4810-AS-P
    DEPARTMENT OF THE TREASURY Office of Foreign Assets Control 31 CFR Parts 501, 535, 536, 537, 538, 539, 541, 542, 543, 544, 546, 547, 548, 549, 560, 561, 566, 576, 588, 592, 593, 594, 595, 597, and 598. Implementation of the Federal Civil Penalties Inflation Adjustment Act AGENCY:

    Office of Foreign Assets Control, Treasury.

    ACTION:

    Interim final rule with request for comments.

    SUMMARY:

    The Department of the Treasury's Office of Foreign Assets Control (OFAC) is issuing this interim final rule to amend its regulations for the relevant sanctions programs it administers to implement the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. In particular, this rule adjusts for inflation the maximum amount of the civil monetary penalties that may be assessed under relevant OFAC regulations, including by making conforming changes to OFAC's “Economic Sanctions Enforcement Guidelines.”

    DATES:

    This rule is effective August 1, 2016. Comments must be received on or before August 1, 2016.

    ADDRESSES:

    You may submit comments by any of the following methods:

    Federal eRulemaking Portal: www.regulations.gov. Follow the instructions on the Web site for submitting comments.

    Fax: Attn: Request for Comments (Amendments to OFAC Regulations to Implement the Federal Civil Penalties Inflation Adjustment Act) 202-622-1657.

    Mail: Attn: Request for Comments (Amendments to OFAC Regulations to Implement the Federal Civil Penalties Inflation Adjustment Act), Office of Foreign Assets Control, Department of the Treasury, 1500 Pennsylvania Avenue NW, Freedman's Bank Building, Washington, DC 20220.

    Instructions: All submissions received must include the agency name and the Federal Register Doc. number that appears at the end of this document. All comments, including attachments and other supporting materials, will become part of the public record and subject to public disclosure. Sensitive personal information, such as account numbers or Social Security numbers, should not be included. Comments generally will not be edited to remove any identifying or contact information.

    FOR FURTHER INFORMATION CONTACT:

    The Department of the Treasury's Office of Foreign Assets Control: Assistant Director for Enforcement, tel.: 202-622-2430; Assistant Director for Licensing, tel.: 202-622-2480, Assistant Director for Regulatory Affairs, tel.: 202-622-4855, Assistant Director for Sanctions Compliance & Evaluation, tel.: 202-622-2490; or the Department of the Treasury's Office of the Chief Counsel (Foreign Assets Control), Office of the General Counsel, tel.: 202-622-2410.

    SUPPLEMENTARY INFORMATION:

    Electronic Availability

    This document and additional information concerning OFAC are available from OFAC's Web site (http://www.treasury.gov/ofac).

    Background

    Section 4 of the Federal Civil Penalties Inflation Adjustment Act (1990 Pub. L. 101-410, 104 Stat. 890; 28 U.S.C. 2461 note), as amended by the Debt Collection Improvement Act of 1996 (Pub. L. 104-134, 110 Stat. 1321-373) and the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Pub. L. 114-74, 129 Stat. 599, 28 U.S.C. 2461 note) (collectively, the FCPIA Act), requires each federal agency with statutory authority to assess civil monetary penalties (CMPs) to adjust CMPs for inflation according to a formula described in section 5 of the FCPIA Act. One purpose of the FCPIA Act is to ensure that CMPs continue to maintain their deterrent effect through periodic cost-of-living based adjustments.

    The FCPIA Act directs agencies to adjust the level of CMPs for inflation annually, with an initial “catch up” adjustment effective no later than August 1, 2016. Catch-up adjustments will be based on the percent change between the Consumer Price Index for all Urban Consumers (CPI-U) for the month of October in the year of the last non-FCPIA-Act-based adjustment and the October 2015 CPI-U. In accordance with the FCPIA Act, however, the amount of the CMP catch-up adjustment shall not exceed 150 percent of the corresponding level in effect on November 2, 2015 (the “maximum adjustment”). Annual inflation adjustments will be based on the percent change between the October CPI-U preceding the date of the adjustment and the prior year's October CPI-U. The FCPIA Act requires agencies to round all CMP levels to the nearest dollar after applying the multiplier.

    In order to complete the catch-up adjustment, the FCPIA Act directs agencies to use as a starting point for each CMP the year and corresponding amount(s) for which the maximum CMP level or range of minimum and maximum CMPs was established or last adjusted, whichever is later, other than pursuant to the FCPIA Act. The catch-up calculations therefore exclude prior inflationary adjustments under the FCPIA Act.

    On February 24, 2016, the Office of Management and Budget issued written guidance providing agencies with CPI-U related multipliers to use when adjusting the CMP level or range of CMP levels based on the year the CMP was established or last adjusted by statute or regulation. (Memorandum for the Heads of Executive Departments and Agencies: Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (OMB Guidance)).

    The adjusted civil penalty amounts described in this rule are applicable only to civil penalties assessed after August 1, 2016, whose associated violations occurred after November 2, 2015, the date of enactment of the Federal Civil Penalties Inflation Adjustment Act Improvements Act. Therefore, violations occurring on or before November 2, 2015, and assessments made prior to August 1, 2016 whose associated violations occurred after November 2, 2015, will continue to be subject to the civil monetary penalty amounts set forth in OFAC's existing regulations.

    OFAC currently is authorized to impose CMPs pursuant to five statutes: the Trading With the Enemy Act (50 U.S.C. 4315) (TWEA); the International Emergency Economic Powers Act (50 U.S.C. 1705) (IEEPA); the Antiterrorism and Effective Death Penalty Act of 1996 (Pub. L. 104-132, 110 Stat. 1250; 18 U.S.C. 2339B) (AEDPA); the Foreign Narcotics Kingpin Designation Act (Pub. L. 106-120, 113 Stat. 1632; 21 U.S.C. 1901-1908) (FNKDA); and the Clean Diamond Trade Act (Pub. L. 108-19, 117 Stat. 631; 19 U.S.C. 3901-3913) (CDTA). The maximum CMPs under the statutes were last adjusted or set by statute as follows: TWEA in 1992; IEEPA in 2007; AEDPA in 1996; FNKDA in 1999, and CDTA in 2003.

    TWEA. The maximum TWEA-based CMP was established at $50,000 in 1992 by the National Defense Authorization Act for Fiscal Year 1993 (Pub. L. 102-484, 106 Stat. 2315, 50 U.S.C. 4315). Although there were two subsequent adjustments, bringing the current maximum CMP to $65,000, those adjustments were made pursuant to the FCPIA Act and therefore will not be considered for purposes of determining the new maximum CMP. Pursuant to the OMB Guidance, the relevant inflation factor is 1.67728. Multiplying the CMP amount of $50,000 by the inflation factor of 1.67728 and rounding to the nearest dollar results in $83,864. This would be an increase of $33,864. Pursuant to the FCPIA Act, the maximum adjustment amount is 150% of $65,000 (the CMP in effect on November 2, 2015), or $97,500. The increase does not exceed the maximum adjustment. Therefore, the maximum TWEA-based CMP effective August 1, 2016 is increased to the inflation-adjusted amount of $83,864 per violation.

    IEEPA. The maximum IEEPA-based CMP of the greater of $250,000 or twice the amount of the underlying transaction was set in 2007 by the International Emergency Economic Powers Enhancement Act (Pub. L. 110-96, 121 Stat. 1011; 50 U.S.C. 1705 note). Pursuant to the OMB Guidance, the relevant inflation factor is 1.13833. Multiplying the current penalty amount of $250,000 by the inflation factor of 1.13833 and rounding to the nearest dollar amount results in a maximum penalty amount of the greater of $284,582 or twice the amount of the underlying transaction per violation. This would be an increase of $34,582. Pursuant to the FCPIA Act, the maximum adjustment is 150% of $250,000 (the CMP in effect on November 2, 2015), or $375,000. The increase does not exceed the maximum adjustment. Therefore, the maximum IEEPA CMP effective August 1, 2016 is increased to the inflation-adjusted amount of $284,582 or twice the amount of the underlying transaction per violation. The FCPIA Act applies only to CMPs that are for a specific monetary amount as provided by Federal law. Accordingly, the alternative IEEPA CMP of twice the amount of the underlying transaction remains unchanged.

    AEDPA. The maximum AEDPA-based CMP of the greater of $50,000 or twice the amount of which a financial institution was required to retain possession or control was set by statute in 1996 (Pub. L. 104-132, 110 Stat. 1250; 18 U.S.C. 2339B). Although there was one subsequent adjustment, bringing the current maximum CMP to $55,000, that adjustment was made pursuant to the FCPIA Act and therefore will not be considered in the new maximum CMP calculation. Pursuant to the OMB Guidance, the relevant inflation factor is 1.50245. Multiplying the CMP amount of $50,000 by the inflation factor of 1.50245 and rounding to the nearest dollar results in $75,122. This would be an increase of $20,122. Pursuant to the FCPIA Act, the maximum adjustment is 150% of $55,000 (the CMP in effect on November 2, 2015), or $82,500. The increase does not exceed the maximum adjustment. Therefore, the maximum AEDPA-based CMP per violation effective August 1, 2016 is increased to the inflation-adjusted amount of the greater of $75,122 or twice the amount of which a financial institution was required to retain possession or control. The FCPIA Act applies only to CMPs that are for a specific monetary amount as provided by Federal law. Accordingly, the alternative AEDPA CMP of twice the amount of which a financial institution was required to retain possession or control remains unchanged.

    FNKDA. The maximum FNKDA-based CMP of $1,000,000 was set in 1999 by the Intelligence Authorization Act for Fiscal Year 2000 (Pub. L. 106-120, 113 Stat. 1632; 21 U.S.C. 1901-1908). Although there was one subsequent adjustment, bringing the current maximum CMP to $1,075,000, that adjustment was made pursuant to the FCPIA Act and therefore will not be considered in the new maximum CMP calculation. Pursuant to OMB Guidance, the relevant inflation factor is 1.41402. Multiplying the CMP of $1,000,000 by the inflation factor of 1.41402 and rounding to the nearest dollar results in $1,414,020. This would be an increase of $414,020. Pursuant to the FCPIA Act, the maximum adjustment is 150% of $1,075,000 (the CMP in effect on November 2, 2015), or $1,612,500. The increase does not exceed the maximum adjustment. Therefore, as of August 1, 2016, the maximum FNKDA-based CMP is increased to the inflation-adjusted amount of $1,414,020 per violation.

    CDTA. The maximum CDTA-based CMP of $10,000 was set by statute in 2003. (Pub. L. 108-19, 117 Stat. 631; 19 U.S.C. 3901-3913). Pursuant to the OMB Guidance, the relevant inflation factor is 1.28561. Multiplying the current penalty of $10,000 by the inflation factor of 1.28561 and rounding to the nearest dollar results in $12,856. This would be an increase of $2,856. Pursuant to the FCPIA Act, the maximum adjustment is 150% of $10,000 (the CMP in effect on November 2, 2015), or $15,000. The increase does not exceed the maximum adjustment. Therefore, the maximum CDTA-based CMP effective August 1, 2016 is increased to the inflation-adjusted amount of $12,856 per violation.

    The table below summarizes the changes to the penalty amounts:

    Statute Existing penalty amount Penalty amount effective August 1, 2016 TWEA $65,000 $83,864. IEEPA The greater of $250,000 or twice the amount of the underlying transaction The greater of $284,582 or twice the amount of the underlying transaction. AEDPA The greater of $55,000 or twice the amount of which a financial institution was required to retain possession or control The greater of $75,122 or twice the amount of which a financial institution was required to retain possession or control. FNKDA $1,075,000 $1,414,020. CDTA $10,000 $12,856.

    The regulations for many of the sanctions programs administered by OFAC, as well as the Reporting, Procedures and Penalties Regulations and the Economic Sanctions Enforcement Guidelines appended thereto, contain references to the current penalty amounts. This interim final rule revises the relevant parts of 31 CFR chapter V to update these amounts. The authority sections of the relevant parts are not being amended at this time.

    This interim final rule also makes certain technical and conforming changes to the Enforcement Guidelines. For example, OFAC is removing one of the examples of a blocked transaction appearing at 31 CFR 501.604(b) because it refers to conduct that is no longer prohibited following the issuance of Executive Order 13350 of July 29, 2004.

    Effective Date

    The FCPIA Act requires agencies to make adjustments for inflation to CMPs and to provide new CMPs through an interim final rulemaking to be published by July 1, 2016. The FCPIA Act further provides that the adjustments for inflation shall take effect no later than August 1, 2016.

    Procedural Requirements Notice and Comment

    As required by the FCPIA Act, these amendments are being published as an interim final rule with an effective date of August 1, 2016. Although other notice and comment procedures are not required, OFAC invites comments on this notice.

    Regulatory Flexibility Act

    Because no notice of proposed rulemaking is required for this rule, the Regulatory Flexibility Act (5 U.S.C. 601-612) does not apply.

    Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this rule does not impose information collection requirements that would require the approval of the Office of Management and Budget under 44 U.S.C. 3501 et seq.

    List of Subjects for 31 CFR Parts 501, 535, 536, 537, 538, 539, 541, 542, 543, 544, 546, 547, 548, 549, 560, 561, 566, 576, 588, 592, 593, 594, 595, 597, and 598

    Administrative practice and procedure, Banks, Banking, Blocking of assets, Exports, Foreign trade, Licensing, Penalties, Sanctions.

    For the reasons set forth in the preamble, 31 CFR chapter V is amended as follows:

    PART 501—REPORTING, PROCEDURES AND PENALTIES REGULATIONS 1. The authority citation for part 501 continues to read as follows: Authority:

    8 U.S.C. 1189; 18 U.S.C. 2332d, 2339B; 19 U.S.C. 3901-3913; 21 U.S.C. 1901-1908; 22 U.S.C. 287c; 22 U.S.C. 2370(a), 6009, 6032, 7205; 28 U.S.C. 2461 note; 31 U.S.C. 321(b); 50 U.S.C. 1701-1706; 50 U.S.C. App. 1-44.

    Subpart C—Reports
    § 501.604 [Amended]
    2. Amend § 501.604 by removing paragraph (b)(2) and redesignating paragraphs (b)(3) through (5) as paragraphs (b)(2) through (4), respectively. Subpart D—Trading With the Enemy Act (TWEA) Penalties 3. Amend § 501.701 by adding a note to paragraph (a)(1) and revising paragraph (a)(3) to read as follows:
    § 501.701 Penalties.

    (a) * * *

    (1) * * *

    Note 1 to paragraph (a)(1):

    As of August 1, 2016, TWEA provides for a maximum civil penalty not to exceed $83,864.

    (3) The Secretary of the Treasury may impose a civil penalty of not more than $83,864 per violation on any person who violates any license, order, or regulation issued under TWEA.

    Note to paragraph (a)(3):

    The current civil penalty cap may be adjusted for inflation pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

    4. Amend appendix A to part 501 by revising section V.B.2.a to read as follows: Appendix A to Part 501—Economic Sanctions Enforcement Guidelines V. Civil Penalties

    B. * * *

    2. * * *

    a. Base Category Calculation

    i. In a non-egregious case, if the apparent violation is disclosed through a voluntary self-disclosure by the Subject Person, the base amount of the proposed civil penalty in the Pre-Penalty Notice shall be one-half of the transaction value, capped at a maximum base amount of $142,291 per violation, except where the statutory maximum penalty applicable to the apparent violation is less than $284,582, in which case the base amount of the proposed civil penalty in the Pre-Penalty Notice shall be capped at one-half the statutory maximum penalty applicable to the apparent violation.

    ii. In a non-egregious case, if the apparent violation comes to OFAC's attention by means other than a voluntary self-disclosure, the base amount of the proposed civil penalty in the Pre-Penalty Notice shall be the “applicable schedule amount,” as defined above. For apparent violations where the statutory maximum penalty applicable to the apparent violation is $284,582 or greater, the maximum base amount shall be capped at $284,582. For apparent violations where the statutory maximum penalty applicable to the apparent violation is less than $284,582, the maximum base amount shall be capped at the statutory maximum penalty amount applicable to the apparent violation.

    iii. In an egregious case, if the apparent violation is disclosed through a voluntary self-disclosure by a Subject Person, the base amount of the proposed civil penalty in the Pre-Penalty Notice shall be one-half of the applicable statutory maximum penalty applicable to the violation.

    iv. In an egregious case, if the apparent violation comes to OFAC's attention by means other than a voluntary self-disclosure, the base amount of the proposed civil penalty in the Pre-Penalty Notice shall be the applicable statutory maximum penalty amount applicable to the violation.

    Note to paragraph (a):

    As of August 1, 2016, the applicable statutory maximum civil penalty per violation for each statute enforced by OFAC is as follows: International Emergency Economic Powers Act (IEEPA)—greater of $284,582 or twice the amount of the underlying transaction; Trading with the Enemy Act (TWEA)—$83,864; Foreign Narcotics Kingpin Designation Act (FNKDA)—$1,414,020; Antiterrorism and Effective Death Penalty Act of 1996 (AEDPA)—greater of $75,122 or twice the amount of which a financial institution was required to retain possession or control; and Clean Diamond Trade Act (CDTA)—$12,856. The civil penalty amounts authorized under these statutes are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

    The following matrix represents the base amount of the proposed civil penalty for each category of violation:

    ER01JY16.000
    PART 535—IRANIAN ASSETS CONTROL REGULATIONS 5. The authority citation for part 535 continues to read as follows: Authority:

    3 U.S.C. 301; 18 U.S.C. 2332d; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 12170, 44 FR 65729, 3 CFR, 1979 Comp., p. 457; E.O. 12205, 45 FR 24099, 3 CFR, 1980 Comp., p. 248; E.O. 12211, 45 FR 26685, 3 CFR, 1980 Comp., p. 253; E.O. 12276, 46 FR 7913, 3 CFR, 1981 Comp., p. 104; E.O. 12279, 46 FR 7919, 3 CFR, 1981 Comp., p. 109; E.O. 12280, 46 FR 7921, 3 CFR, 1981 Comp., p. 110; E.O. 12281, 46 FR 7923, 3 CFR, 1981 Comp., p. 112; E.O. 12282, 46 FR 7925, 3 CFR, 1981 Comp., p. 113; E.O. 12283, 46 FR 7927, 3 CFR, 1981 Comp., p. 114; and E.O. 12294, 46 FR 14111, 3 CFR, 1981 Comp., p. 139.

    Subpart G—Penalties. 6. Revise the note to paragraph (a)(1) of § 535.701 to read as follows:
    § 535.701 Penalties.

    (a) * * *

    (1) * * *

    Note to paragraph (a)(1):

    As of August 1, 2016, the applicable maximum civil penalty per violation of the Act is the greater of $284,582 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

    PART 536—NARCOTICS TRAFFICKING SANCTIONS REGULATIONS 7. The authority citation for part 536 continues to read as follows: Authority:

    3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 12978, 60 FR 54579, 3 CFR, 1995 Comp., p. 415; E.O. 13286, 68 FR 10619, 3 CFR, 2003 Comp., p. 166.

    Subpart G—Penalties 8. Revise the note to paragraph (a)(1) of § 536.701 to read as follows:
    § 536.701 Penalties.

    (a) * * *

    (1) * * *

    Note to paragraph (a)(1):

    As of August 1, 2016, the applicable maximum civil penalty per violation of the Act is the greater of $284,582 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

    PART 537—BURMESE SANCTIONS REGULATIONS 9. The authority citation for part 537 continues read as follows: Authority:

    3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Sec. 570, Pub. L. 104-208, 110 Stat. 3009; Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1701 note); Pub. L. 110-286, 122 Stat. 2632 (50 U.S.C. 1701 note); E.O. 13047, 62 FR 28301, 3 CFR, 1997 Comp., p. 202; E.O. 13310, 68 FR 44853, 3 CFR, 2003 Comp., p. 241; E.O. 13448, 72 FR 60223, 3 CFR, 2007 Comp., p. 304; E.O. 13464, 73 FR 24491, 3 CFR, 2008 Comp., p. 189; E.O. 13619, 77 FR 41243, 3 CFR, 2012 Comp., p. 279; E.O. 13651, 78 FR 48793 (August 9, 2013); Determination No. 2009-11, 74 FR 3957, 3 CFR, 2009 Comp., p. 330.

    Subpart G—Penalties 10. Revise the note to paragraph (a)(1) of § 537.701 to read as follows:
    § 537.701 Penalties.

    (a) * * *

    (1) * * *

    Note to paragraph (a)(1):

    As of August 1, 2016, the applicable maximum civil penalty per violation of IEEPA is the greater of $284,582 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

    PART 538—SUDANESE SANCTIONS REGULATIONS 11. The authority citation for part 538 continues to read as follows: Authority:

    3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 22 U.S.C. 7201-7211; Pub. L. 109-344, 120 Stat. 1869; Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13067, 62 FR 59989, 3 CFR, 1997 Comp., p. 230; E.O. 13412, 71 FR 61369, 3 CFR, 2006 Comp., p. 244.

    Subpart G—Penalties 12. Revise the note to paragraph (a)(1) of § 538.701 to read as follows:
    § 538.701 Penalties.

    (a) * * *

    (1) * * *

    Note to paragraph (a)(1):

    As of August 1, 2016, the applicable maximum civil penalty per violation of the Act is the greater of $284,582 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

    PART 539—WEAPONS OF MASS DESTRUCTION TRADE CONTROL REGULATIONS 13. The authority citation for part 539 continues to read as follows: Authority:

    3 U.S.C. 301; 22 U.S.C. 2751-2799aa-2; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13094, 63 FR 40803, 3 CFR, 1998 Comp., p. 200.

    Subpart G—Penalties 14. Revise the note to paragraph (a)(1) of § 539.701 to read as follows:
    § 539.701 Penalties.

    (a) * * *

    (1) * * *

    Note to paragraph (a)(1):

    As of August 1, 2016, the applicable maximum civil penalty per violation of the Act is the greater of $284,582 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

    PART 541—ZIMBABWE SANCTIONS REGULATIONS 15. The authority citation for part 541 continues to read as follows: Authority:

    3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13288, 68 FR 11457, 3 CFR, 2003 Comp., p. 186; E.O. 13391, 70 FR 71201, 3 CFR, 2005 Comp., p. 206; E.O. 13469, 73 FR 43841, 3 CFR, 2008 Comp., p. 1025.

    Subpart G—Penalties 16. Revise the note to paragraph (a)(1) of § 541.701 to read as follows:
    § 541.701 Penalties.

    (a) * * *

    (1) * * *

    Note to paragraph (a)(1):

    As of August 1, 2016, the applicable maximum civil penalty per violation of IEEPA is the greater of $284,582 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

    PART 542—SYRIAN SANCTIONS REGULATIONS 17. The authority citation for part 542 continues to read as follows: Authority:

    3 U.S.C. 301; 31 U.S.C. 321(b); 18 U.S.C. 2332d; 22 U.S.C. 287c; 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1701 note); E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., p. 168; E.O. 13399, 71 FR 25059, 3 CFR, 2006 Comp., p. 218; E.O. 13460, 73 FR 8991, 3 CFR 2008 Comp., p. 181; E.O. 13572, 76 FR 24787, 3 CFR 2011 Comp., p. 236; E.O. 13573, 76 FR 29143, 3 CFR 2011 Comp., p. 241; E.O. 13582, 76 FR 52209, 3 CFR 2011 Comp., p. 264; E.O. 13606, 77 FR 24571, 3 CFR 2012 Comp., p. 243.

    Subpart G—Penalties 18. Revise the note to paragraph (a)(1) of § 542.701 to read as follows:
    § 542.701 Penalties.

    (a) * * *

    (1) * * *

    Note to paragraph (a)(1):

    As of August 1, 2016, the applicable maximum civil penalty per violation of IEEPA is the greater of $284,582 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

    PART 543—COTE D'IVOIRE SANCTIONS REGULATIONS 19. The authority citation for part 543 continues to read as follows: Authority:

    3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13396, 71 FR 7389, 3 CFR, 2006 Comp., p. 209.

    Subpart G—Penalties 20. Revise the note to paragraph (a)(1) of § 543.701 to read as follows:
    § 543.701 Penalties.

    (a) * * *

    (1) * * *

    Note to paragraph (a)(1):

    As of August 1, 2016, the applicable maximum civil penalty per violation of IEEPA is the greater of $284,582 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

    PART 544—WEAPONS OF MASS DESTRUCTION PROLIFERATORS SANCTIONS REGULATIONS 21. The authority citation for part 544 continues to read as follows: Authority:

    3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Public Law 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Public Law 110-96, 121 Stat. 1011; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13094, 63 FR 40803, 3 CFR, 1998 Comp., p. 200; E.O. 13382, 70 FR 38567, 3 CFR, 2005 Comp., p. 170.

    Subpart G—Penalties 22. Revise the note to paragraph (a)(1) of § 544.701 to read as follows:
    § 544.701 Penalties.

    (a) * * *

    (1) * * *

    Note to paragraph (a)(1):

    As of August 1, 2016, the applicable maximum civil penalty per violation of IEEPA is the greater of $284,582 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

    PART 546—DARFUR SANCTIONS REGULATIONS 23. The authority citation for part 546 continues to read as follows: Authority:

    3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13067, 62 FR 59989, 3 CFR, 1997 Comp., p. 230; E.O. 13400, 71 FR 25483, 3 CFR, 2006 Comp., p. 220.

    Subpart G—Penalties 24. Revise the note to paragraph (a)(1) of § 546.701 to read as follows:
    § 546.701 Penalties.

    (a) * * *

    (1) * * *

    Note to paragraph (a)(1):

    As of August 1, 2016, the applicable maximum civil penalty per violation of IEEPA is the greater of $284,582 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

    PART 547—DEMOCRATIC REPUBLIC OF THE CONGO SANCTIONS REGULATIONS 25. The authority citation for part 547 continues to read as follows: Authority:

    3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13413, 71 FR 64105, 3 CFR, 2006 Comp., p. 247.

    Subpart G—Penalties 26. Revise the note to paragraph (a)(1) of § 547.701 to read as follows:
    § 547.701 Penalties.

    (a) * * *

    (1) * * *

    Note to paragraph (a)(1):

    As of August 1, 2016, the applicable maximum civil penalty per violation of IEEPA is the greater of $284,582 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

    PART 548—BELARUS SANCTIONS REGULATIONS 27. The authority citation for part 548 continues to read as follows: Authority:

    3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13405, 71 FR 35485; 3 CFR, 2007 Comp., p. 231.

    Subpart G—Penalties 28. Revise the note to paragraph (a)(1) of § 548.701 to read as follows:
    § 548.701 Penalties.

    (a) * * *

    (1) * * *

    Note to paragraph (a)(1):

    As of August 1, 2016, the applicable maximum civil penalty per violation of IEEPA is the greater of $284,582 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

    PART 549—LEBANON SANCTIONS REGULATIONS 29. The authority citation for part 549 continues to read as follows: Authority:

    3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13441, 72 FR 43499, 3 CFR, 2008 Comp., p. 232.

    Subpart G—Penalties 30. Revise the note to paragraph (a)(1) of § 549.701 to read as follows:
    § 549.701 Penalties.

    (a) * * *

    (1) * * *

    Note to paragraph (a)(1):

    As of August 1, 2016, the applicable maximum civil penalty per violation of IEEPA is the greater of $284,582 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

    PART 560—IRANIAN TRANSACTIONS AND SANCTIONS REGULATIONS 31. The authority citation for part 560 continues to read as follows: Authority:

    3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C. 2349aa-9; 22 U.S.C. 7201-7211; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Public Law 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Public Law 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Public Law 111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Public Law 112-81, 125 Stat. 1298 (22 U.S.C. 8513a); Public Law 112-158, 126 Stat. 1214 (22 U.S.C. 8701-8795); E.O. 12613, 52 FR 41940, 3 CFR, 1987 Comp., p. 256; E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 12959, 60 FR 24757, 3 CFR, 1995 Comp., p. 356; E.O. 13059, 62 FR 44531, 3 CFR, 1997 Comp., p. 217; E.O. 13599, 77 FR 6659, 3 CFR, 2012 Comp., p. 215; E.O. 13628, 77 FR 62139, 3 CFR, 2012 Comp., p. 314.

    Subpart G—Penalties 32. Revise the note to paragraph (a)(1) of § 560.701 to read as follows:
    § 560.701 Penalties.

    (a) * * *

    (1) * * *

    Note to paragraph (a)(1):

    As of August 1, 2016, the applicable maximum civil penalty per violation of IEEPA is the greater of $284,582 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

    PART 561—IRANIAN FINANCIAL SANCTIONS REGULATIONS 33. The authority citation for part 561 continues to read as follows: Authority:

    3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Pub. L. 112-81, 125 Stat. 1298 (22 U.S.C. 8513a); Pub. L. 112-158, 126 Stat. 1214 (22 U.S.C. 8701-8795); E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 13553, 75 FR 60567, 3 CFR, 2010 Comp., p. 253; E.O. 13599, 77 FR 6659, February 8, 2012; E.O. 13622, 77 FR 45897, August 2, 2012; E.O. 13628, 77 FR 62139, October 12, 2012.

    Subpart G—Penalties 34. Revise the note to paragraph (a) of § 561.701 to read as follows:
    § 561.701 Penalties.

    (a) * * *

    Note to paragraph (a):

    As of August 1, 2016, the applicable maximum civil penalty per violation of IEEPA is the greater of $284,582 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

    PART 566—HIZBALLAH FINANCIAL SANCTIONS REGULATIONS 35. The authority citation for part 566 continues to read as follows: Authority:

    3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 114-102.

    Subpart G—Penalties 36. Revise the note to paragraph (a) of § 566.701 to read as follows:
    § 566.701 Penalties.

    (a) * * *

    Note to paragraph (a):

    As of August 1, 2016, the applicable maximum civil penalty per violation of IEEPA is the greater of $284,582 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

    PART 576—IRAQ STABILIZATION AND INSURGENCY SANCTIONS REGULATIONS 37. The authority citation for part 576 continues to read as follows: Authority:

    3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 110-96, 121 Stat. 1011; E.O. 13303, 68 FR 31931, 3 CFR, 2003 Comp., p. 227; E.O. 13315, 68 FR 52315, 3 CFR, 2003 Comp., p. 252; E.O. 13350, 69 FR 46055, 3 CFR, 2004 Comp., p. 196; E.O. 13364, 69 FR 70177, 3 CFR, 2004 Comp., p. 236; E.O. 13438, 72 FR 39719, 3 CFR, 2007 Comp., p. 224.

    Subpart G—Penalties 38. Revise the note to paragraph (a)(1) of § 576.701 to read as follows:
    § 576.701 Penalties.

    (a) * * *

    (1) * * *

    Note to paragraph (a)(1):

    As of August 1, 2016, the applicable maximum civil penalty per violation of IEEPA is the greater of $284,582 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

    PART 588—WESTERN BALKANS STABILIZATION REGULATIONS 39. The authority citation for part 588 continues to read as follows: Authority:

    3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); E.O. 13219, 66 FR 34777, 3 CFR, 2001 Comp., p. 778; E.O. 13304, 68 FR 32315, 3 CFR, 2004 Comp. p. 229.

    Subpart G—Penalties 40. Revise the note to paragraph (a)(1) of § 588.701 to read as follows:
    § 588.701 Penalties.

    (a) * * *

    (1) * * *

    Note to paragraph (a)(1):

    As of August 1, 2016, the applicable maximum civil penalty per violation of IEEPA is the greater of $284,582 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

    PART 592—ROUGH DIAMONDS CONTROL REGULATIONS 41. The authority citation for part 592 continues to read as follows: Authority:

    3 U.S.C. 301; 31 U.S.C. 321(b); Pub. L. 108-19, 117 Stat. 631 (19 U.S.C. 3901-3913); E.O. 13312, 68 FR 45151 3 CFR, 2003 Comp., p. 246.

    Subpart F—Penalties 42. Amend § 592.601 by revising paragraphs (a) introductory text, (a)(1), and (b) to read as follows:
    § 592.601 Penalties.

    (a) Section 8 of the Clean Diamond Trade Act (the Act) (Pub. L. 108-19, 117 Stat. 631, 19 U.S.C. 3901-3913) provides that:

    (1) A civil penalty not to exceed the amount set forth in section 8 of the Act may be imposed on any person who violates, or attempts to violate, any order or regulation issued under the Act;

    Note to paragraph (a)(1):

    As of August 1, 2016, the applicable maximum civil penalty per violation of the Act is $12,856.

    (b) Adjustments to penalty amounts. (1) The civil penalties provided in the Act are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

    (2) The criminal penalties provided in the Act are subject to increase pursuant to 18 U.S.C. 3571.

    PART 593—FORMER LIBERIAN REGIME OF CHARLES TAYLOR SANCTIONS REGULATIONS 43. The authority citation for part 593 continues to read as follows: Authority:

    3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 13348, 69 FR 44885, 3 CFR, 2004 Comp., p. 189.

    Subpart G—Penalties 44. Revise the note to paragraph (a)(1) of § 593.701 to read as follows:
    § 593.701 Penalties.

    (a) * * *

    (1) * * *

    Note to paragraph (a)(1):

    As of August 1, 2016, the applicable maximum civil penalty per violation of IEEPA is the greater of $284,582 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

    PART 594—GLOBAL TERRORISM SANCTIONS REGULATIONS 45. The authority citation for part 594 continues to read as follows: Authority:

    3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; E.O. 13268, 67 FR 44751, 3 CFR, 2002 Comp., p. 240; E.O. 13284, 68 FR 4075, 3 CFR, 2003 Comp., p. 161; E.O. 13372, 70 FR 8499, 3 CFR, 2006 Comp., p. 159.

    Subpart G—Penalties 46. Revise the note to paragraph (a)(1) of § 594.701 to read as follows:
    § 594.701 Penalties.

    (a) * * *

    (1) * * *

    Note to paragraph (a)(1):

    As of August 1, 2016, the applicable maximum civil penalty per violation of the Act is the greater of $284,582 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

    PART 595—TERRORISM SANCTIONS REGULATIONS 47. The authority citation for part 595 continues to read as follows: Authority:

    3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 110-96, 121 Stat. 1011; E.O. 12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 319; E.O. 13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13372, 70 FR 8499, 3 CFR, 2006 Comp., p. 159.

    Subpart G—Penalties 48. Revise the note to paragraph (a)(1) of § 595.701 to read as follows:
    § 595.701 Penalties.

    (a) * * *

    (1) * * *

    Note to paragraph (a)(1):

    As of August 1, 2016, the applicable maximum civil penalty per violation of the Act is the greater of $284,582 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed.

    PART 597—FOREIGN TERRORIST ORGANIZATIONS SANCTIONS REGULATIONS 49. The authority citation for part 597 continues to read as follows: Authority:

    31 U.S.C. 321(b); Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 104-132, 110 Stat. 1214, 1248-53 (8 U.S.C. 1189, 18 U.S.C. 2339B).

    Subpart G—Penalties 50. Revise paragraph (b) of § 597.701 to read as follows:
    § 597.701 Penalties.

    (b)(1) Pursuant to 18 U.S.C. 2339B(b), except as authorized by the Secretary of the Treasury, any financial institution that knowingly fails to retain possession of or maintain control over funds in which a foreign terrorist organization or its agent has an interest, or to report the existence of such funds in accordance with these regulations, shall be subject to a civil penalty in an amount that is the greater of the amount set forth in 18 U.S.C. 2339B(b) per violation, or twice the amount of which the financial institution was required to retain possession or control.

    (2) The civil penalties provided in 18 U.S.C. 2339B(b) are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

    Note to paragraph (b):

    As of August 1, 2016, the applicable maximum civil penalty per violation is $75,122 or twice the amount of which a financial institution was required to retain possession or control.

    PART 598—FOREIGN NARCOTICS KINGPIN SANCTIONS REGULATIONS 51. The authority citation for part 598 continues to read as follows: Authority:

    3 U.S.C. 301; 21 U.S.C. 1901-1908; 31 U.S.C. 321(b); Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note).

    Subpart G—Penalties. 52. Amend § 598.701 by revising paragraphs (a)(3) and (b) to read as follows:
    § 598.701 Penalties.

    (a) * * *

    (3) A civil penalty not to exceed the amount set forth in section 807 of the Foreign Narcotics Kingpin Designation Act (21 U.S.C. 1901-1908) per violation may be imposed by the Secretary of the Treasury on any person who violates any license, order, rule, or regulation issued in compliance with the provisions of the Foreign Narcotics Kingpin Designation Act.

    Note to paragraph (a)(3):

    As of August 1, 2016, the maximum civil penalty is $1,414,020 per violation.

    (b) Adjustments to penalty amounts. (1) The current civil penalty cap may be adjusted for inflation pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

    (2) The criminal penalties provided in this part are subject to increase pursuant to 18 U.S.C. 3571.

    John E. Smith, Acting Director, Office of Foreign Assets Control.
    [FR Doc. 2016-15552 Filed 6-30-16; 8:45 am] BILLING CODE 4810-AL-P
    DEPARTMENT OF DEFENSE Department of the Navy 32 CFR Part 706 Certifications and Exemptions Under the International Regulations for Preventing Collisions at Sea, 1972 AGENCY:

    Department of the Navy, DoD.

    ACTION:

    Final rule.

    SUMMARY:

    The Department of the Navy (DoN) is amending its certifications and exemptions under the International Regulations for Preventing Collisions at Sea, 1972 (72 COLREGS), to reflect that the Deputy Assistant Judge Advocate General (DAJAG) (Admiralty and Maritime Law) has determined that certain vessels of the VIRGINIA SSN Class are vessels of the Navy which, due to their special construction and purpose, cannot fully comply with certain provisions of the 72 COLREGS without interfering with their special function as a naval ships. The intended effect of this rule is to warn mariners in waters where 72 COLREGS apply.

    DATES:

    This rule is effective July 1, 2016 and is applicable beginning June 21, 2016.

    FOR FURTHER INFORMATION CONTACT:

    Commander Theron R. Korsak, (Admiralty and Maritime Law), Office of the Judge Advocate General, Department of the Navy, 1322 Patterson Ave. SE., Suite 3000, Washington Navy Yard, DC 20374-5066, telephone 202-685-5040.

    SUPPLEMENTARY INFORMATION:

    Pursuant to the authority granted in 33 U.S.C. 1605, the DoN amends 32 CFR part 706.

    This amendment provides notice that the DAJAG (Admiralty and Maritime Law), under authority delegated by the Secretary of the Navy, has certified that certain vessels of the SSN Class are vessels of the Navy which, due to their special construction and purpose, cannot fully comply with the following specific provisions of 72 COLREGS without interfering with their special function as a naval ship: Annex I, paragraph 2(a)(i), pertaining to the vertical placement of the masthead light; Annex I, paragraph 2(f)(i), pertaining to VIRGINIA class submarine masthead light location below the submarine identification lights; Annex I, paragraph 2(k), pertaining to the vertical separation of the anchor lights and vertical placement of the forward anchor light above the hull; Annex I, paragraph 3(b), pertaining to the location of the sidelights; and Rule 21(c), pertaining to the location and arc of visibility of the sternlight. The DAJAG (Admiralty and Maritime Law) has also certified that the lights involved are located in closest possible compliance with the applicable 72 COLREGS requirements.

    Moreover, it has been determined, in accordance with 32 CFR parts 296 and 701, that publication of this amendment for public comment prior to adoption is impracticable, unnecessary, and contrary to public interest since it is based on technical findings that the placement of lights on these vessels in a manner differently from that prescribed herein will adversely affect these vessel's ability to perform their military functions.

    List of Subjects in 32 CFR Part 706

    Marine safety, Navigation (water), and Vessels.

    For the reasons set forth in the preamble, the DoN amends part 706 of title 32 of the Code of Federal Regulations as follows:

    PART 706—CERTIFICATIONS AND EXEMPTIONS UNDER THE INTERNATIONAL REGULATIONS FOR PREVENTING COLLISIONS AT SEA, 1972 1. The authority citation for part 706 continues to read as follows: Authority:

    33 U.S.C. 1605.

    2. Section 706.2 is amended by: a. In Table One, adding, in alpha numerical order, by vessel number, the following entries for the SSN class; b. In Table Three, adding, in alpha numerical order, by vessel number, the following entries for the SSN class; c. In Table Four, paragraph 25, by adding, in alpha numerical order, by vessel number, the following entries for the SSN class; and d. In Table Four, paragraph 26, by adding, in alpha numerical order, by vessel number, the following entries for the SSN class.
    § 706.2 Certifications of the Secretary of the Navy under Executive Order 11964 and 33 U.S.C. 1605. Table One Vessel Number Distance in meters of forward
  • masthead light
  • below minimum
  • required height.
  • § 2(a)(i) Annex I
  • *         *         *         *         *         *         * USS Illinois SSN 786 2.76 USS Washington SSN 787 2.76 *         *         *         *         *         *         *
    Table Three Vessel Number Masthead lights arc of visibility; rule 21(a) Side lights arc of visibility; rule 21(b) Stern light arc of visibility; rule 21(c) Side lights, distance
  • inboard of
  • ship's sides in
  • meters 3(b)
  • annex 1
  • Stern light, distance
  • forward of
  • stern in
  • meters;
  • rule 21(c)
  • Forward
  • anchor light, height above hull in meters; 2(K) annex 1
  • Anchor lights
  • relationship of
  • aft light to
  • forward light in
  • meters 2(K)
  • annex 1
  • *         *         *         *         *         *         * USS Illinois SSN 786 205.0° 4.37 11.05 2.8 0.30 below. USS Washington SSN 787 206.8° 4.37 11.05 2.8 0.30 below. *         *         *         *         *         *         *

    25. * * *

    Table Four Vessel Number Distance in meters of masthead light below the
  • submarine
  • identification
  • lights
  • *         *         *         *         *         *         * USS Illinois SSN 786 0.81 USS Washington SSN 787 0.81

    26. * * *

    Table Four Vessel Number Obstruction angle relative to ship's headings Forward anchor light Aft anchor light *         *         *         *         *         *         * USS Illinois SSN 786 172° to 188° 359° to 1°. USS Washington SSN 787 172° to 188° 359° to 1°.
    Approved: June 21, 2016. C. J. Spain, Deputy Assistant Judge Advocate General (Admiralty and Maritime Law), Acting. Dated: June 23, 2016. N. A. Hagerty-Ford, Commander, Judge Advocate General's Corps, U.S. Navy, Federal Register Liaison Officer.
    [FR Doc. 2016-15359 Filed 6-30-16; 8:45 am] BILLING CODE 3810-FF-P
    DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Parts 100 and 165 [Docket No. USCG-2015-1052] Special Local Regulations and Safety Zones; Recurring Events Held in the Coast Guard Sector Northern New England Captain of the Port Zone AGENCY:

    Coast Guard, DHS.

    ACTION:

    Notice of enforcement of regulations.

    SUMMARY:

    The Coast Guard will enforce the events outlined in Tables 1 and 2 taking place throughout the Sector Northern New England Captain of the Port (COTP) Zone. This action is necessary to protect marine traffic and spectators from the hazards associated with powerboat races, regattas, boat parades, rowing and paddling boat races, swim events, and fireworks displays. During the enforcement period, no person or vessel may transit this regulated area without approval from the Captain of the Port or a designated representative.

    DATES:

    The regulations in 33 CFR 100.120 and 33 CFR 165.171 will be enforced for the Special Local Regulations and Safety Zones identified in the SUPPLEMENTARY INFORMATION section below for the dates and times specified.

    FOR FURTHER INFORMATION CONTACT:

    If you have questions about this notice of enforcement, call or email Chief Chris Bains, Waterways Management Division, U.S. Coast Guard, Sector Northern New England; telephone at 207-347-5003 or email at [email protected]

    SUPPLEMENTARY INFORMATION:

    The Coast Guard will enforce the special local regulations and safety zones listed in 33 CFR 100.120 and 33 CFR 165.171. These regulations will be enforced for the duration of each event, on or about the dates indicated in TABLES 1 and 2.

    Table 1—(33 CFR 100.120) JUNE Charlie Begin Memorial Lobster Boat Races • Event Type: Power Boat Race. • Sponsor: Boothbay Harbor Lobster Boat Committee. • Date: June 18, 2016. • Time: 9:00 a.m. to 2:00 p.m. • Location: The regulated area includes all waters of Boothbay Harbor, Maine in the vicinity of John's Island within the following points (NAD 83): 43°50′04″ N., 069°38′37″ W. 43°50′54″ N., 069°38′06″ W. 43°50′49″ N., 069°37′50″ W. 43°50′00″ N., 069°38′20″ W. Rockland Harbor Lobster Boat Races • Event Type: Power Boat Race. • Sponsor: Rockland Harbor Lobster Boat Race Committee. • Date: June 19, 2016. • Time: 10:00 a.m. to 3:00 p.m. • Location: The regulated area includes all waters of Rockland Harbor, Maine in the vicinity of the Rockland Breakwater Light within the following points (NAD 83): 44°05′59″ N., 069°04′53″ W. 44°06′43″ N., 069°05′25″ W. 44°06′50″ N., 069°05′05″ W. 44°06′05″ N., 069°04′34″ W. Windjammer Days Parade of Ships • Event Type: Tall Ship Parade. • Sponsor: Boothbay Region Chamber of Commerce. • Date: June 29, 2016. • Time: 1:00 p.m. to 3:00 p.m. • Location: The regulated area includes all waters of Boothbay Harbor, Maine in the vicinity of Tumbler's Island within the following points (NAD 83): 43°51′02″ N., 069°37′33″ W. 43°50′47″ N., 069°37′31″ W. 43°50′23″ N., 069°37′57″ W. 43°50′01″ N., 069°37′45″ W. 43°50′01″ N., 069°38′31″ W. 43°50′25″ N., 069°38′25″ W. 43°50′49″ N., 069°37′45″ W. Bass Harbor Blessing of the Fleet Lobster Boat Race • Event Type: Power Boat Race. • Sponsor: Tremont Congregational Church. • Date: June 26, 2016. • Time: 9:00 a.m. to 2:00 p.m. • Location: The regulated area includes all waters of Bass Harbor, Maine in the vicinity of Lopaus Point within the following points (NAD 83): 44°13′28″ N., 068°21′59″ W. 44°13′20″ N., 068°21′40″ W. 44°14′05″ N., 068°20′55″ W. 44°14′12″ N., 068°21′14″ W. JULY The Challenge Race • Event Type: Rowing and Paddling Boat Race. • Sponsor: Lake Champlain Maritime Museum. • Date: July 10, 2016. • Time: 11:00 a.m. to 1:00 p.m. • Location: The regulated area includes all waters of Lake Champlain in the vicinity of Button Bay State Park within the following points (NAD 83): 44°12′25″ N., 073°22′32″ W. 44°12′00″ N., 073°21′42″ W. 44°12′19″ N., 073°21′25″ W. 44°13′16″ N., 073°21′36″ W. The Great Race • Event Type: Rowing and Paddling Boat Race. • Sponsor: Franklin County Chamber of Commerce. • Date: July 3, 2016. • Time: 10:30 a.m. to 1:00 p.m. • Location: The regulated area includes all waters of Lake Champlain in the vicinity of Saint Albans Bay within the following points (NAD 83): 44°47′18″ N., 073°10′27″ W. 44°47′10″ N., 073°08′51″ W. Stonington Lobster Boat Races • Event Type: Power Boat Race. • Sponsor: Stonington Lobster Boat Race Committee. • Date: July 10, 2016. • Time: 9:30 a.m. to 3:30 p.m. • Location: The regulated area includes all waters of Stonington, Maine within the following points (NAD 83): 44°08′55″ N., 068°40′12″ W. 44°09′00″ N., 068°40′15″ W. 44°09′11″ N., 068°39′42″ W. 44°09′07″ N., 068°39′39″ W. AUGUST Tall Ships Visiting Portsmouth • Event Type: Regatta and Boat Parade. • Sponsor: Piscataqua Maritime Commission. • Date: August 10, 2016. • Time: 6:30 p.m. to 7:30 p.m. • Location: The regulated area includes all waters of Portsmouth Harbor, New Hampshire in the vicinity of Castle Island within the following points (NAD 83): 43°03′11″ N., 070°42′26″ W. 43°03′18″ N., 070°41′51″ W. 43°04′42″ N., 070°42′11″ W. 43°04′28″ N., 070°44′12″ W. 43°05′36″ N., 070°45′56″ W. 43°05′29″ N., 070°46′09″ W. 43°04′19″ N., 070°44′16″ W. 43°04′22″ N, 070°42′33″ W. Eggemoggin Reach Regatta • Event Type: Wooden Boat Parade. • Sponsor: Rockport Marine, Inc. and Brookline Boat Yard. • Date: August 6, 2016. • Time: 11:00 a.m. to 7:00 p.m. • Location: The regulated area includes all waters of Eggemoggin Reach and Jericho Bay in the vicinity of Naskeag Harbor, Maine within the following points (NAD 83): 44°15′16″ N., 068°36′26″ W. 44°12′41″ N., 068°29′26″ W. 44°07′38″ N., 068°31′30″ W. 44°12′54″ N., 068°33′46″ W. Lake Champlain Dragon Boat Festival • Event Type: Rowing and Paddling Boat Race. • Sponsor: Dragonheart Vermont. • Date: July 16, 2016 and July 17, 2016. • Time (Approximate): 8:00 a.m. to 6:00 p.m. • Date: August 6, 2016 and August 7, 2016. • Time (Approximate): 8:00 a.m. to 5:00 p.m. • Location: The regulated area includes all waters of Burlington Bay within the following points (NAD 83): 44°28′49″ N., 073°13′22″ W. 44°28′41″ N., 073°13′36″ W. 44°28′28″ N., 073°13′31″ W. 44°28′38″ N., 073°13′18″ W. Winter Harbor Lobster Boat Races • Event Type: Power Boat Race. • Sponsor: Winter Harbor Chamber of Commerce. • Date: August 13, 2016. • Time: 10:00 a.m. to 2:00 p.m. • Location: The regulated area includes all waters of Winter Harbor, Maine within the following points (NAD 83): 44°22′06″ N., 068°05′13″ W. 44°23′06″ N., 068°05′08″ W. 44°23′04″ N., 068°04′37″ W. 44°22′05″ N., 068°04′44″ W. Merritt Brackett Lobster Boat Races • Event Type: Power Boat Race. • Sponsor: Town of Bristol, Maine. • Date: August 14, 2016. • Time: 10:30 a.m. to 2:00 p.m. • Location: The regulated area includes all waters of Pemaquid Harbor, Maine within the following points (NAD 83): 43°52′16″ N., 069°32′10″ W. 43°52′41″ N., 069°31′43″ W. 43°52′35″ N., 069°31′29″ W. 43°52′09″ N., 069°31′56″ W. Long Island Lobster Boat Race • Event Type: Power Boat Race. • Sponsor: Long Island Lobster Boat Race Committee. • Date: August 20, 2016. • Time (Approximate): 12:00 a.m. to 6:00 p.m. • Location: The regulated area includes all waters of Casco Bay, Maine in the vicinity of Great Ledge Cove and Dorseys Cove off the north west coast of Long Island, Maine within the following points (NAD 83): 43°41′59″ N., 070°08′59″ W. 43°42′04″ N., 070°09′10″ W. 43°41′41″ N., 070°09′38″ W. 43°41′36″ N., 070°09′30″ W. Table 2—(33 CFR 165.171) JUNE Rotary Waterfront Days Fireworks • Event Type: Fireworks Display. • Sponsor: Gardiner Rotary. • Date: June 18, 2016. • Time: 8:45 p.m. to 9:30 p.m. • Location: In the vicinity of the Gardiner Waterfront, Gardiner, Maine in approximate position: 44°13′52″ N., 069°46′08″ W. (NAD 83). Windjammer Days Fireworks • Event Type: Fireworks Display. • Sponsor: Boothbay Harbor Region Chamber of Commerce. • Date: June 22, 2016. • Rain date: July 4, 2016. • Time: 8:30 p.m. to 9:00 p.m. • Location: In the vicinity of McFarland Island, Boothbay Harbor, Maine in approximate position: 43°50′38″ N., 069°37′57″ W. (NAD 83). JULY Burlington Independence Day Fireworks • Event Type: Fireworks Display. • Sponsor: City of Burlington, Vermont. • Date: July 3, 2016. • Time: 9:35 p.m. to 11:30 p.m. • Location: From a barge in the vicinity of Burlington Harbor, Burlington, Vermont in approximate position: 44°28′31″ N., 073°13′31″ W. (NAD 83). Colchester Triathlon • Event Type: Swim Event. • Sponsor: Colchester Parks and Recreation Department. • Date: July 18, 2016. • Time: 8:30 a.m. to 9:30 a.m. • Location: The regulated area includes all waters of Malletts Bay on Lake Champlain, Vermont within the following points (NAD 83): 44°32′18″ N., 073°12′35″ W. 44°32′28″ N., 073°12′56″ W. 44°32′57″ N., 073°12′38″ W. Bar Harbor 4th of July Fireworks • Event Type: Fireworks Display. • Sponsor: Bar Harbor Chamber of Commerce. • Date: July 4, 2016. • Rain date: July 5, 2016. • Time: 8:00 p.m. to 10:00 p.m. • Location: In the vicinity of Bar Harbor Town Pier, Bar Harbor, Maine in approximate position: 44°23′31″ N., 068°12′15″ W. (NAD 83). Boothbay Harbor 4th of July Fireworks • Event Type: Fireworks Display. • Sponsor: Town of Boothbay Harbor. • Date: July 4, 2016. • Rain date: July 5, 2016. • Time: 8:30 p.m. to 9:00 p.m. • Location: In the vicinity of McFarland Island, Boothbay Harbor, Maine in approximate position: 43°50′38″ N., 069°37′57″ W. (NAD 83). Eastport 4th of July Fireworks • Event Type: Fireworks Display. • Sponsor: Eastport 4th of July Committee. • Date: July 4, 2016. • Rain date: July 5, 2016. • Time: 9:00 p.m. to 10:30 p.m. • Location: From the Waterfront Public Pier in Eastport, Maine in approximate position: 44°54′25″ N., 066°58′55″ W. (NAD 83). Ellis Short Sand Park Trustee Fireworks • Event Type: Fireworks Display. • Sponsor: William Burnham. • Date: July 4, 2016. • Rain date: July 5, 2016. • Time: 9:00 p.m. to 10:30 p.m. • Location: In the vicinity of York Beach, Maine in approximate position: 43°10′27″ N., 070°36′26″ W. (NAD 83). Jonesport 4th of July Fireworks • Event Type: Fireworks Display. • Sponsor: Jonesport 4th of July Committee. • Date: July 2, 2016. • Rain date: July 3, 2016. • Time: 8:45 p.m. to 9:30 p.m. • Location: In the vicinity of Beals Island, Jonesport, Maine in approximate position: 44°31′18″ N., 067°36′43″ W. (NAD 83). Portland Harbor 4th of July Fireworks • Event Type: Fireworks Display. • Sponsor: Department of Parks and Recreation, Portland, Maine. • Date: July 4, 2016. • Rain date: July 5, 2016. • Time: 9:30 p.m. to 10:00 p.m. • Location: In the vicinity of East End Beach, Portland, Maine in approximate position: 43°40′16″ N., 070°14′44″ W. (NAD 83). St. Albans Day Fireworks • Event Type: Fireworks Display. • Sponsor: St. Albans Area Chamber of Commerce. • Date: July 2, 2016. • Time: 9:30 p.m. to 11:30 p.m. • Location: From the St. Albans Bay dock in St. Albans Bay, Vermont in approximate position: 44°48′25″ N., 073°08′23″ W. (NAD 83). Lubec Bicentennial Fireworks • Event Type: Fireworks Display. • Sponsor: Town of Lubec, Maine. • Date: July 3, 2016. • Rain date: July 5, 2016. • Time: 9:00 p.m. to 10:30 p.m. • Location: In the vicinity of the Lubec Public Boat Launch in approximate position: 44°51′52″ N., 066°59′06″ W. (NAD 83). Vinalhaven 4th of July Fireworks • Event Type: Fireworks Display. • Sponsor: Vinalhaven 4th of July Committee. • Date: July 2, 2016 • Rain date: July 3, 2016. • Time: 9:00 p.m. to 10:30 p.m. • Location: In the vicinity of Grime′s Park, Vinalhaven, Maine in approximate position: 44°02′34″ N., 068°50′26″ W. (NAD 83). Main Street Heritage Days 4th of July Fireworks • Event Type: Fireworks Display. • Sponsor: Main Street Bath Inc. • Date: July 4, 2016. • Rain date: July 5, 2016. • Time: 9:00 p.m. to 10:30 p.m. • Location: In the vicinity of Reed and Reed Boat Yard, Woolwich, Maine in approximate position: 43°54′56″ N., 069°48′16″ W. (NAD 83). Peaks to Portland Swim • Event Type: Swim Event. • Sponsor: Cumberland County YMCA. • Date: July 23, 2016. • Time: 9:00 a.m. to 12:00 p.m. • Location: The regulated area includes all waters of Portland Harbor between Peaks Island and East End Beach in Portland, Maine within the following points (NAD 83): 43°39′20″ N., 070°11′58″ W. 43°39′45″ N., 070°13′19″ W. 43°40′11″ N., 070°14′13″ W. 43°40′08″ N., 070°14′29″ W. 43°40′00″ N., 070°14′23″ W. 43°39′34″ N., 070°13′31″ W. 43°39′13″ N., 070°11′59″ W. Richmond Days Fireworks • Event Type: Fireworks Display. • Sponsor: Town of Richmond, Maine. • Date: July 23, 2016. • Rain date: July 24, 2016. • Time: 9:00 p.m. to 10:30 p.m. • Location: From a barge in the vicinity of the inner harbor, Tenants Harbor, Maine in approximate position: 44°08′42″ N., 068°27′06″ W. (NAD83). Tri for a Cure Swim Clinics and Triathlon • Event Type: Swim Event. • Sponsor: Maine Cancer Foundation. • Dates & Times: June 25, 2016 1:00 p.m. to 3:00 p.m. June 29, 2016 5:30 p.m. to 7:30 p.m. July 9, 2016 2:00 p.m. to 4:00 p.m. July 13, 2016 5:30 p.m. to 7:30 p.m. July 17, 2016 7:00 a.m. to 10:00 a.m. • Location: The regulated area includes all waters of Portland Harbor, Maine in the vicinity of Spring Point Light within the following points (NAD 83): 43°39′01″ N., 070°13′32″ W. 43°39′07″ N., 070°13′29″ W. 43°39′06″ N., 070°13′41″ W. 43°39′01″ N., 070°13′36″ W. August York Beach Fire Department Fireworks • Event Type: Fireworks Display. • Sponsor: York Beach Fire Department. • Date: August 7, 2016. • Rain date: August 14, 2016. • Time (Approximate): 9:00 p.m. to 10:30 p.m. • Location: In the vicinity of Short Sand Cove in York, Maine in approximate position: 43°10′27″ N., 070°36′25″ W. (NAD 83). SEPTEMBER The Lobsterman Triathlon • Event Type: Swim Event. • Sponsor: Tri-Maine Productions. • Date: September 17, 2016. • Time (Approximate): 8:00 a.m. to 10:00 a.m. • Location: The regulated area includes all waters in the vicinity of Winslow Park in South Freeport, Maine within the following points (NAD 83): 43°47′59″ N., 070°06′56″ W. 43°47′44″ N., 070°06′56″ W. 43°47′44″ N., 070°07′27″ W. 43°47′57″ N., 070°07′27″ W.

    The Coast Guard may patrol each event area under the direction of a designated Coast Guard Patrol Commander (PATCOM). The PATCOM may be contacted on Channel 16 VHF-FM (156.8 MHz) by the call sign “PATCOM.” Official patrol vessels may consist of any Coast Guard, Coast Guard Auxiliary, state, or local law enforcement vessels assigned or approved by the COTP, Sector Northern New England. For information about regulations and restrictions for waterway use during the effective periods of these events, please refer to 33 CFR 100.120 and 33 CFR 165.171.

    This notice of enforcement is issued under authority of 33 CFR 100.120, 33 CFR 165.171, and 5 U.S.C. 552 (a). In addition to this notice of enforcement in the Federal Register, the Coast Guard will provide the maritime community with advance notification of this enforcement period via the Local Notice to Mariners and marine information broadcasts. If the COTP determines that the regulated area need not be enforced for the full duration stated in this notice, he or she may use a Broadcast Notice to Mariners to grant general permission to enter the regulated area.

    Dated: May 27, 2016. M. A. Baroody, Captain, U.S. Coast Guard, Captain of the Port Sector Northern New England.
    [FR Doc. 2016-15701 Filed 6-30-16; 8:45 am] BILLING CODE 9110-04-P
    DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 165 [Docket No. USCG-2010-0063] Safety Zones; Annual Firework Displays Within the Captain of the Port, Puget Sound Zone—July 2016 AGENCY:

    Coast Guard, DHS.

    ACTION:

    Notice of enforcement of regulation.

    SUMMARY:

    The Coast Guard will enforce five safety zones for annual firework displays in the Captain of the Port, Puget Sound Zone during the dates and times noted under SUPPLEMENTARY INFORMATION. This action is necessary to prevent injury and to protect life and property of the maritime public from the hazards associated with the firework displays. During the enforcement periods, entry into, transit through, mooring, or anchoring within these safety zones is prohibited unless authorized by the Captain of the Port, Puget Sound or their Designated Representative.

    DATES:

    The regulations in 33 CFR 165.1332 will be enforced for the five safety zones listed under SUPPLEMENTARY INFORMATION during the dates and times specified.

    FOR FURTHER INFORMATION CONTACT:

    If you have questions on this notice of enforcement, call or email MST1 Wayne Lau, Sector Puget Sound Waterways Management, Coast Guard; telephone 206-217-6051, [email protected]

    SUPPLEMENTARY INFORMATION:

    The Coast Guard will enforce the following five safety zones established for Annual Fireworks Displays within the Captain of the Port, Puget Sound Area of Responsibility in 33 CFR 165.1332 during the dates and times noted in the table below.

    The following safety zones will be enforced from 5 p.m. on July 4, 2016, through 1 a.m. on July 5, 2016:

    Event name Location Latitude Longitude Radius Tacoma Freedom Fair Commencement Bay 47°17.103′ N 122°28.410 W 300 yds. Des Moines Fireworks Des Moines 47°24.117′ N 122°20.033′ W 200 yds. Three Tree Point Community Fireworks Three Tree Point 47°27.033′ N 122°23.15′ W 200 yds. Roche Harbor Fireworks Roche Harbor 48°36.7′ N 123°09.5′ W 200 yds. Deer Harbor Annual Fireworks Display Deer Harbor 48°37.0′ N 123°00.25′ W 150 yds.

    The special requirements listed in 33 CFR 165.1332(b) apply to the activation and enforcement of these safety zones. All vessel operators who desire to enter the safety zone must obtain permission from the Captain of the Port or their Designated Representative by contacting the Coast Guard Sector Puget Sound Joint Harbor Operations Center (JHOC) on VHF Ch 13 or Ch 16 or via telephone at (206) 217-6002.

    The Coast Guard may be assisted by other Federal, State, or local law enforcement agencies in enforcing this regulation.

    This notice of enforcement is issued under authority of 33 CFR 165.1332 and 5 U.S.C. 552(a). In addition to the publication of this document in the Federal Register, the Coast Guard will provide the maritime community with extensive advanced notification of enforcement of these safety zones via the Local Notice to Mariners and marine information broadcasts on the day of the events.

    Dated: June 27, 2016. M.W. Raymond, Captain, U.S. Coast Guard, Captain of the Port, Puget Sound.
    [FR Doc. 2016-15634 Filed 6-30-16; 8:45 am] BILLING CODE 9110-04-P
    DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 165 [Docket Number USCG-2016-0131] RIN 1625-AA00 Safety Zone, Shallowbag Bay; Manteo, NC AGENCY:

    Coast Guard, DHS.

    ACTION:

    Temporary final rule.

    SUMMARY:

    The Coast Guard is establishing a temporary safety zone on the navigable waters of the Shallowbag Bay in Manteo, North Carolina. This action is necessary to provide the safety of mariners on navigable waters to protect the life and property of the maritime public and spectators from the hazards posed by aerial fireworks display. Entry into or movement within the safety zone during the enforcement period is prohibited without approval of the Captain of the Port.

    DATES:

    This rule is effective from 9 p.m. on July 4, 2016, through 10:30 p.m. on July 5, 2016. The safety zone created by this rule will be subject to enforcement from 9 p.m. to 10:30 p.m. on July 4, 2016. The safety zone will also be subject to enforcement from 9 p.m. to 10:30 p.m. on July 5, 2016, if the fireworks display is postponed because of adverse weather.

    ADDRESSES:

    To view documents mentioned in this preamble as being available in the docket, go to http://www.regulations.gov, type USCG-2016-0131 in the “SEARCH” box and click “SEARCH.” Click on Open Docket Folder on the line associated with this rule.

    FOR FURTHER INFORMATION CONTACT:

    If you have questions on this rule, call or email LCDR Derek J. Burrill, Waterways Management Division Chief, Sector North Carolina, Coast Guard; telephone (910) 772-2230, email [email protected]

    SUPPLEMENTARY INFORMATION: I. Table of Abbreviations CFR Code of Federal Regulations DHS Department of Homeland Security FR Federal Register NPRM Notice of proposed rulemaking § Section U.S.C. United States Code II. Background Information and Regulatory History

    On July 4, 2016, fireworks will be launched from a barge located in Shallowbag Bay in Manteo, North Carolina as part of the Manteo July 4th Celebration. The Captain of the Port North Carolina is establishing a temporary safety zone on specified waters of Shallowbag Bay within a 200-yard radius of a barge anchored in approximate position 35°54′31″ N., longitude 075°39′46″ W. (NAD 1983). This safety zone will be effective and enforced from 9 p.m. to 10:30 p.m. on July 4, 2016 with a rain date being July 5, 2016 from 9 p.m. to 10:30 p.m. Access to the safety zone will be restricted during the specified dates and times. On April 26, 2016, the Coast Guard published a notice of proposed rulemaking (NPRM) titled Safety Zone, Shallowbag Bay; Manteo, NC (81 FR 24521). There we stated why we issued the NPRM, and invited comments on our proposed regulatory action related to this fireworks display. During the comment period that ended May 11, 2016, we received no comments.

    Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause exists for making this rule effective less than 30 days after publication in the Federal Register. Given the date of the fireworks display, it is impracticable to delay the effective date of this rule beyond July 4, 2016.

    III. Legal Authority and Need for Rule

    The Coast Guard is issuing this rule under authority in 33 U.S.C. 1231. The Captain of the Port North Carolina (COTP) has determined that potential hazards associated with the aerial fireworks on July 4, 2016 or July 5, 2016 will be a safety concern for anyone within a 200-yard radius of a barge anchored in approximate position 35°54′31″ N., longitude 075°39′46″ W. This rule is needed to protect personnel, vessels, and the marine environment in the navigable waters within the safety zone.

    IV. Discussion of Comments, Changes, and the Rule

    As noted above, we received no comments on our NPRM published April 26, 2016. There are no changes in the regulatory text of this rule from the proposed rule in the NPRM.

    This rule establishes a safety zone from 9 p.m. to 10:30 p.m. on July 4, 2016 with a rain date being July 5, 2016 from 9 p.m. to 10:30 p.m. The safety zone will cover all navigable waters within 200 yards radius of a barge anchored in approximate position 35°54′31″ N., longitude 075°39′46″ W. in Shallowbag Bay in Manteo, NC. The duration of the zone is intended to ensure the safety of vessels and these navigable waters before, during, and after the scheduled 9 p.m. to 10:30 p.m. fireworks display. No vessel or person will be permitted to enter the safety zone without obtaining permission from the COTP or a designated representative.

    V. Regulatory Analyses

    We developed this rule after considering numerous statutes and Executive orders related to rulemaking. Below we summarize our analyses based on a number of these statutes and Executive orders, and we discuss First Amendment rights of protestors.

    A. Regulatory Planning and Review

    Executive Orders 12866 and 13563 direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits. Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This rule has not been designated a “significant regulatory action,” under Executive Order 12866. Accordingly, it has not been reviewed by the Office of Management and Budget.

    The primary impact of these regulations will be on limiting all vessels wishing to transit the affected waterways during enforcement of the safety zone on the waters of Shallowbag Bay within a 200-yard radius of a barge anchor in approximate position 35°54′31″ N., longitude 075°39′46″ W. on July 04, 2016 from 9 p.m. to 10:30 p.m. with a rain date being July 5, 2016 from 9 p.m. to 10:30 p.m. Although these regulations prevent traffic from transiting a portion of Shallowbag Bay during this event, that restriction is limited in duration, affects only a limited area, and will be well publicized to allow mariners to make alternative plans for transiting the affected area.

    B. Impact on Small Entities

    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as amended, requires Federal agencies to consider the potential impact of regulations on small entities during rulemaking. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. The Coast Guard received no comments from the Small Business Administration on this rulemaking. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will not have a significant economic impact on a substantial number of small entities.

    While some owners or operators of vessels intending to transit the safety zone may be small entities, for the reasons stated in section V.A above, this rule will not have a significant economic impact on any vessel owner or operator.

    Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we want to assist small entities in understanding this rule. If the rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please contact the person listed in the FOR FURTHER INFORMATION CONTACT section.

    Small businesses may send comments on the actions of Federal employees who enforce, or otherwise determine compliance with, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards. The Ombudsman evaluates these actions annually and rates each agency's responsiveness to small business. If you wish to comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247). The Coast Guard will not retaliate against small entities that question or complain about this rule or any policy or action of the Coast Guard.

    C. Collection of Information

    This rule will not call for a new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

    D. Federalism and Indian Tribal Governments

    A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. We have analyzed this rule under that Order and have determined that it is consistent with the fundamental federalism principles and preemption requirements described in Executive Order 13132.

    Also, this rule does not have tribal implications under Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, because it does not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes. If you believe this rule has implications for federalism or Indian tribes, please contact the person listed in the FOR FURTHER INFORMATION CONTACT section above.

    E. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. Though this rule will not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble.

    F. Environment

    We have analyzed this rule under Department of Homeland Security Management Directive 023-01 and Commandant Instruction M16475.lD, which guide the Coast Guard in complying with the National Environmental Policy Act of 1969(42 U.S.C. 4321-4370f), and have determined that this action is one of a category of actions that do not individually or cumulatively have a significant effect on the human environment. This rule involves the establishment of a safety zone to limit all vessels within a 200 yard radius of a barge anchor in approximate position 35°54′31″ N., longitude 075°39′46″ W. on July 4, 2016 from 9 p.m. to 10:30 p.m. with a rain date being July 5, 2016 from 9 p.m. to 10:30 p.m. to protect life and property of mariners from the dangers associated with aerial fireworks. It is categorically excluded from further review under paragraph 34(g) of Figure 2-1 of the Commandant Instruction. We seek any comments or information that may lead to the discovery of a significant environmental impact from this rule.

    G. Protest Activities

    The Coast Guard respects the First Amendment rights of protesters. Protesters are asked to contact the person listed in the FOR FURTHER INFORMATION CONTACT section to coordinate protest activities so that your message can be received without jeopardizing the safety or security of people, places or vessels.

    List of Subjects in 33 CFR Part 165

    Harbors, Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, Waterways.

    For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 165 as follows:

    PART 165— REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS 1. The authority citation for part 165 continues to read as follows: Authority:

    33 U.S.C. 1231; 50 U.S.C. 191; 33 CFR 1.05-1, 6.04-1, 6.04-6, and 160.5; Department of Homeland Security Delegation No. 0170.1.

    2. Add § 165.T05-0131 to read as follows:
    § 165.T05-0131 Safety Zone, Shallowbag Bay; Manteo, North Carolina.

    (a) Definitions. For the purposes of this section, Captain of the Port means the Commander, Sector North Carolina. Representative means any Coast Guard commissioned, warrant or petty officer who has been authorized to act on the behalf of the Captain of the Port.

    (b) Location. The following area is a safety zone: All waters of Shallowbag Bay within a 200 yard radius of a barge anchored in position 35°54′31″ N., longitude 075°39′46″ W. (NAD 1983).

    (c) Regulations. (1) The general regulations in § 165.23 apply to the area described in paragraph (b) of this section.

    (2) Persons or vessels requesting entry into or passage through any portion of the safety zone must first request authorization from the Captain of the Port, or a designated representative. The Captain of the Port or his designated representative can be contacted at telephone number (910) 343-3882 or by radio on VHF Marine Band Radio, channels 13 and 16.

    (d) Enforcement. The U.S. Coast Guard may be assisted in the patrol and enforcement of the zone by Federal, State, and local agencies.

    (e) Enforcement period. This section will be enforced from 9 p.m. to 10:30 p.m. on July 4, 2016, or a rain date of July 5, 2016, unless cancelled earlier by the Captain of the Port.

    Dated: June 9, 2016. P.J. Hill, Captain, U.S. Coast Guard, Captain of the Port North Carolina.
    [FR Doc. 2016-15700 Filed 6-30-16; 8:45 am] BILLING CODE 9110-04-P
    DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 165 [Docket Number USCG-2016-0331] RIN 1625-AA00 Safety Zone; Confluence of James River and Appomattox River, Hopewell, VA AGENCY:

    Coast Guard, DHS.

    ACTION:

    Temporary final rule.

    SUMMARY:

    The Coast Guard is establishing a safety zone on the navigable waters of the confluence of the James River and the Appomattox River in Hopewell, Virginia. This safety zone will restrict vessel movement within a 700-foot radius of the fireworks barge during the fireworks display for the City of Hopewell centennial celebration. This action is necessary to provide for the safety of life and property on the surrounding navigable waters during the fireworks display.

    DATES:

    This rule is effective and will be enforced from 8 p.m. through 10:45 p.m. on July 2, 2016.

    ADDRESSES:

    To view documents mentioned in this preamble as being available in the docket, go to http://www.regulations.gov, type USCG-2016-0331 in the “SEARCH” box and click “SEARCH.” Click on Open Docket Folder on the line associated with this rule.

    FOR FURTHER INFORMATION CONTACT:

    If you have questions on this rule, call or email LCDR Barbara Wilk, Waterways Management Division Chief, Sector Hampton Roads, U.S. Coast Guard; telephone 757-668-5580, email [email protected]

    SUPPLEMENTARY INFORMATION:

    I. Table of Abbreviations CFR Code of Federal Regulations DHS Department of Homeland Security FR Federal Register NPRM Notice of proposed rulemaking § Section U.S.C. United States Code II. Background Information and Regulatory History

    The Coast Guard is issuing this temporary rule without prior notice and opportunity to comment pursuant to authority under section 4(a) of the Administrative Procedure Act (APA) (5 U.S.C. 553(b)). This provision authorizes an agency to issue a rule without prior notice and opportunity to comment when the agency for good cause finds that those procedures are “impracticable, unnecessary, or contrary to the public interest.” Under 5 U.S.C. 553(b)(B), the Coast Guard finds that good cause exists for not publishing a notice of proposed rulemaking (NPRM) with respect to this rule because information about the fireworks on July 2, 2016 was not received by the Coast Guard until recently, which provided insufficient time to allow for an opportunity to comment on the proposed rule. The Coast Guard will provide advance notifications to users of the affected waterway via marine information broadcasts and local notice to mariners.

    We are issuing this rule, and under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause exists for making it effective less than 30 days after publication in the Federal Register. Due to the need for the safety zone to be in place on July 2, 2016, to protect life, property and the environment; therefore, a 30-day notice is impracticable. Delaying the effective date would be contrary to the safety zone's intended objectives of protecting persons and vessels, and enhancing public and maritime safety.

    III. Legal Authority and Need for Rule

    The Coast Guard is issuing this rule under authority in 33 U.S.C. 1231. The Captain of the Port Hampton Roads (COTP) has determined that potential hazards associated with the fireworks display starting on July 2, 2016, will be a safety concern for anyone within a 700-foot radius of the fireworks barge. This rule is needed to protect the participants, patrol vessels, and other vessels transiting the navigable waters of the confluence of the James River and the Appomattox River, in Hopewell, VA, from hazards associated with a fireworks display. The potential hazards to mariners within the safety zone include accidental discharge of fireworks, dangerous projectiles, and falling hot embers or other debris.

    IV. Discussion of the Rule

    The Captain of the Port of Hampton Roads is establishing a safety zone on the confluence of the James River and the Appomattox River in Hopewell, VA. The safety zone will encompass all navigable waters within a 700-foot radius of the fireworks display barge location at position 37°19′27.74″ N., 077°16′45.22″ W. (NAD 1983). This safety zone still allows for navigation on the waterway. This safety zone will be established and enforced from 8 p.m. through 10:45 p.m. on July 2, 2016. Access to the safety zone will be restricted during the effective period. Except for participants and vessels authorized by the Captain of the Port or his Designated representative, no person or vessel may enter or remain in the regulated area.

    The Captain of the Port will give notice of the enforcement of the safety zone by all appropriate means to provide the widest dissemination of notice to the affected segments of the public. This includes publication in the Local Notice to Mariners and Marine Information Broadcasts.

    V. Regulatory Analyses

    We developed this rule after considering numerous statutes and Executive orders related to rulemaking. Below we summarize our analyses based on a number of these statutes and Executive orders, and we discuss First Amendment rights of protestors.

    A. Regulatory Planning and Review

    Executive Orders 12866 and 13563 direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits. Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This rule has not been designated a “significant regulatory action,” under Executive Order 12866. Accordingly, it has not been reviewed by the Office of Management and Budget.

    This regulatory action determination is based on the size, location, duration, and time-of-year of the safety zone. Vessel traffic will be able to safely transit around this safety zone which will impact a small designated area of the confluence of the James River and the Appomattox River in Hopewell, VA for less than 3 hours. Moreover, the Coast Guard will issue Broadcast Notice to Mariners via VHF-FM marine channel 16 about the zone and the rule allows vessels to seek permission to enter the zone.

    B. Impact on Small Entities

    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as amended, requires Federal agencies to consider the potential impact of regulations on small entities during rulemaking. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will not have a significant economic impact on a substantial number of small entities.

    While some owners or operators of vessels intending to transit the safety zone may be small entities, for the reasons stated in section V.A above, this rule will not have a significant economic impact on any vessel owner or operator.

    Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we want to assist small entities in understanding this rule. If the rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please contact the person listed in the FOR FURTHER INFORMATION CONTACT section.

    Small businesses may send comments on the actions of Federal employees who enforce, or otherwise determine compliance with, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards. The Ombudsman evaluates these actions annually and rates each agency's responsiveness to small business. If you wish to comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247). The Coast Guard will not retaliate against small entities that question or complain about this rule or any policy or action of the Coast Guard.

    C. Collection of Information

    This rule will not call for a new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

    D. Federalism and Indian Tribal Governments

    A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. We have analyzed this rule under that Order and have determined that it is consistent with the fundamental federalism principles and preemption requirements described in Executive Order 13132.

    Also, this rule does not have tribal implications under Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, because it does not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes. If you believe this rule has implications for federalism or Indian tribes, please contact the person listed in the FOR FURTHER INFORMATION CONTACT section above.

    E. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. Though this rule will not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble.

    F. Environment

    We have analyzed this rule under Department of Homeland Security Management Directive 023-01 and Commandant Instruction M16475.lD, which guide the Coast Guard in complying with the National Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have determined that this action is one of a category of actions that do not individually or cumulatively have a significant effect on the human environment. This rule involves a safety zone lasting less than 3 hours that will prohibit entry within a 700-foot radius of the fireworks barge. It is categorically excluded from further review under paragraph 34(g) of Figure 2-1 of the Commandant Instruction. An environmental analysis checklist supporting this determination and a Categorical Exclusion Determination are available in the docket where indicated under ADDRESSES. We seek any comments or information that may lead to the discovery of a significant environmental impact from this rule.

    G. Protest Activities

    The Coast Guard respects the First Amendment rights of protesters. Protesters are asked to contact the person listed in the FOR FURTHER INFORMATION CONTACT section to coordinate protest activities so that your message can be received without jeopardizing the safety or security of people, places or vessels.

    List of Subjects in 33 CFR Part 165

    Harbors, Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, Waterways.

    For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 165 as follows:

    PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS 1. The authority citation for part 165 continues to read as follows: Authority:

    33 U.S.C. 1231; 50 U.S.C. 191; 33 CFR 1.05-1, 6.04-1, 6.04-6, 160.5; Department of Homeland Security Delegation No. 0170.1.

    2. Add § 165.T05-0331 to read as follows:
    § 165.T05-0331 Safety Zone, Confluence of James River and Appomattox River; Hopewell, VA.

    (a) Definitions. For the purposes of this section—

    Captain of the Port means the Commander, Sector Hampton Roads.

    Designated representative means any Coast Guard commissioned, warrant or petty officer who has been authorized to act on the behalf of the Captain of the Port.

    Participants mean individuals and vessels involved in explosives training.

    (b) Location. The following area is a safety zone: All waters in the confluence of the James River and the Appomattox River, within a 700-foot radius of the fireworks display barge in approximate position 37°19′27.74″ N., 077°16′45.22″ W. (NAD 1983).

    (c) Regulations. (1) All persons are required to comply with the general regulations governing safety zones in § 165.23.

    (2) With the exception of participants, entry into or remaining in this safety zone is prohibited unless authorized by the Captain of the Port, Hampton Roads or his designated representative.

    (3) All vessels underway within this safety zone at the time it is implemented are to depart the zone immediately.

    (4) The Captain of the Port, Hampton Roads or his designated representative can be contacted at telephone number (757) 668-5555.

    (5) The Coast Guard and designated security vessels enforcing the safety zone can be contacted on VHF-FM marine band radio channel 13 (165.65 Mhz) and channel 16 (156.8 Mhz).

    (6) This section applies to all persons or vessels wishing to transit through the safety zone except participants and vessels that are engaged in the following operations:

    (i) Enforcing laws;

    (ii) Servicing aids to navigation, and

    (iii) Emergency response vessels.

    (7) The U.S. Coast Guard may be assisted in the patrol and enforcement of the safety zone by Federal, State, and local agencies.

    (d) Enforcement period. This section will be enforced from 8 p.m. through 10:45 p.m. on July 2, 2016.

    Dated: June 15, 2016. Christopher S. Keane, Captain, U.S. Coast Guard, Captain of the Port Hampton Roads.
    [FR Doc. 2016-15608 Filed 6-30-16; 8:45 am] BILLING CODE 9110-04-P
    DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 165 [Docket Number USCG-2016-0335] RIN 1625-AA00 Safety Zone; Ohio River Mile 42.5 to 43.0, Chester, West Virginia AGENCY:

    Coast Guard, DHS.

    ACTION:

    Temporary final rule.

    SUMMARY:

    The Coast Guard is establishing a temporary safety zone for all water extending 300 feet from the left descending bank into the Ohio River from mile 42.5 to mile 43.0. This action is necessary to protect personnel, vessels, and the marine environment from potential hazards created by a land-based fireworks display. This regulation prohibits persons and vessels from being in the safety zone unless authorized by the Captain of the Port Pittsburgh or a designated representative.

    DATES:

    This rule is effective from 9:30 p.m. to 11:00 p.m. on July 4, 2016.

    ADDRESSES:

    To view documents mentioned in this preamble as being available in the docket, go to http://www.regulations.gov, type USCG-2016-0335 in the “SEARCH” box and click “SEARCH.” Click on Open Docket Folder on the line associated with this rule.

    FOR FURTHER INFORMATION CONTACT:

    If you have questions on this rule, call or email MST1 Jennifer Haggins, Marine Safety Unit Pittsburgh, U.S. Coast Guard; telephone 412-221-0807, email [email protected]

    SUPPLEMENTARY INFORMATION: I. Table of Abbreviations CFR Code of Federal Regulations DHS Department of Homeland Security FR Federal Register NPRM Notice of proposed rulemaking § Section U.S.C. United States Code II. Background Information and Regulatory History

    On April 6, 2016, the Chester Volunteer Fire Department notified the Coast Guard that from 9:30 p.m. to 11:00 p.m. on July 4, 2016, it will be conducting a fireworks display launched from land in the vicinity of the Ohio River, Chester, WV. In response, on June 8, 2016 the Coast Guard published a notice of proposed rulemaking (NPRM) titled Safety Zone; Ohio River Mile 42.5 to 43.0, Chester, West Virginia, 81 FR 36831. There we stated why we issued the NPRM, and invited comments on our proposed regulatory action related to this fireworks display. During the comment period that ended June 20, 2016 we received no comments.

    We are issuing this final rule, and under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause exists for making it effective less than 30 days after publication in the Federal Register. Though we are not providing a full 30-day notice period, the Coast Guard did provide notice and opportunity to comment through the NPRM process. This event is advertised to the local community and this rule is necessary for safety during the fireworks event. Delaying this rule to provide a full 30-days notice is impracticable because this rule must be effective July 4, 2016.

    III. Legal Authority and Need for Rule

    The Coast Guard is issuing this rule under authority in 33 U.S.C. 1231. The Captain of the Port Pittsburgh (COTP) has determined that potential hazards associated with the fireworks to be used in this July 4, 2016 display will be a safety concern for anyone in proximity of the land-based site. The purpose of this rule is to ensure safety of vessels and the navigable waters in the safety zone before, during, and after the scheduled event.

    IV. Discussion of Comments, Changes, and the Final Rule

    As noted above, we received no comments on our NPRM published June 8, 2016. There are no changes in the regulatory text of this rule from the proposed rule in the NPRM.

    This rule establishes a safety zone from 9:30 p.m. to 11:00 p.m. on July 4, 2016. The safety zone will cover all navigable waters extending 300 feet from the left descending bank into the Ohio River from mile 42.5 to mile 43.0 in Chester, WV. The duration of the zone is intended to ensure the safety of vessels and these navigable waters before, during, and after the scheduled 9:30 p.m. to 11:00 p.m. fireworks display. No vessel or person will be permitted to enter the safety zone without obtaining permission from the COTP or a designated representative.

    V. Regulatory Analyses

    We developed this rule after considering numerous statutes and Executive orders related to rulemaking. Below we summarize our analyses based on a number of these statutes and Executive Orders, and we discuss First Amendment rights of protestors.

    A. Regulatory Planning and Review

    Executive Orders 12866 and 13563 direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits. Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This rule has not been designated a “significant regulatory action,” under Executive Order 12866. Accordingly, it has not been reviewed by the Office of Management and Budget.

    This regulatory action determination is based on the size, location, duration, and time-of-day of the safety zone. Vessel traffic will be able to safely transit around this safety zone which will impact a small designated area of the Ohio River for less than 2 hours. Moreover, the Coast Guard will issue Broadcast Notice to Mariners via VHF-FM marine channel 16 about the zone and the rule allows vessels to seek permission to enter the zone.

    B. Impact on Small Entities

    The Regulatory Flexibility Act of 1980, 5 U.S.C. 601-612, as amended, requires Federal agencies to consider the potential impact of regulations on small entities during rulemaking. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. The Coast Guard received 00 comments from the Small Business Administration on this rulemaking. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will not have a significant economic impact on a substantial number of small entities.

    While some owners or operators of vessels intending to transit the safety zone may be small entities, for the reasons stated in section V.A above, this rule will not have a significant economic impact on any vessel owner or operator.

    Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we want to assist small entities in understanding this rule. If the rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please contact the person listed in the FOR FURTHER INFORMATION CONTACT section.

    Small businesses may send comments on the actions of Federal employees who enforce, or otherwise determine compliance with, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards. The Ombudsman evaluates these actions annually and rates each agency's responsiveness to small business. If you wish to comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247). The Coast Guard will not retaliate against small entities that question or complain about this rule or any policy or action of the Coast Guard.

    C. Collection of Information

    This rule will not call for a new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

    D. Federalism and Indian Tribal Governments

    A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. We have analyzed this rule under that Order and have determined that it is consistent with the fundamental federalism principles and preemption requirements described in Executive Order 13132.

    Also, this rule does not have tribal implications under Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, because it does not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes. If you believe this rule has implications for federalism or Indian tribes, please contact the person listed in the FOR FURTHER INFORMATION CONTACT section above.

    E. Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. Though this rule will not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble.

    F. Environment

    We have analyzed this rule under Department of Homeland Security Management Directive 023-01 and Commandant Instruction M16475.lD, which guide the Coast Guard in complying with the National Environmental Policy Act of 1969 (42 U.S.C. 4321-4370f), and have determined that this action is one of a category of actions that do not individually or cumulatively have a significant effect on the human environment. This rule involves a safety zone lasting less than 2 hours that will prohibit entry 300 feet from the left descending bank into the Ohio River from mile 42.5 to mile 43.0. It is categorically excluded from further review under paragraph 34(g) of Figure 2-1 of the Commandant Instruction. An environmental analysis checklist supporting this determination and a Categorical Exclusion Determination are available in the docket where indicated under ADDRESSES. We seek any comments or information that may lead to the discovery of a significant environmental impact from this rule.

    G. Protest Activities

    The Coast Guard respects the First Amendment rights of protesters. Protesters are asked to contact the person listed in the FOR FURTHER INFORMATION CONTACT section to coordinate protest activities so that your message can be received without jeopardizing the safety or security of people, places or vessels.

    List of Subjects in 33 CFR Part 165

    Marine safety, Navigation (water), Reporting and recordkeeping requirements, Security measures, Waterways.

    For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 165 as follows:

    PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS 1. The authority citation for part 165 continues to read as follows: Authority:

    33 U.S.C. 1231; 50 U.S.C. 191; 33 CFR 1.05-1, 6.04-1, 6.04-6, and 160.5; Department of Homeland Security Delegation No. 0170.1.

    2. Add § 165.T08-0335 to read as follows:
    § 165.T08-0335 Safety Zone; Ohio River Mile 42.5 to Mile 43.0, Chester, WV.

    (a) Location. The following area is a safety zone: All waters extending 300 feet from the left descending bank into the Ohio River from mile 42.5 to mile 43.0.

    (b) Definitions. As used in this section, designated representative means a Coast Guard Patrol Commander, including a Coast Guard coxswain, petty officer, or other officer operating a Coast Guard vessel and a Federal, State, and local officer designated by or assisting the Captain of the Port Pittsburgh (COTP) in the enforcement of the safety zone.

    (c) Regulations. (1) Under the general safety zone regulations in § 165.23, you may not enter the safety zone described in paragraph (a) of this section unless authorized by the COTP or the COTP's designated representative.

    (2) To seek permission to enter, contact the COTP or the COTP's representative at 412-221-0807. Those in the safety zone must comply with all lawful orders or directions given to them by the COTP or the COTP's designated representative.

    (d) Enforcement period. This section will be enforced from 9:30 p.m. to 11:00 p.m. on July 4, 2016.

    (e) Informational broadcasts. The COTP or a designated representative will inform the public through broadcast notices to mariners of the enforcement period for the safety zone as well as any changes in the dates and times of enforcement.

    L. Mcclain, Jr., Commander, U.S. Coast Guard, Captain of the Port Pittsburgh.
    [FR Doc. 2016-15689 Filed 6-30-16; 8:45 am] BILLING CODE 9110-04-P
    ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 19 [FRL-9948-48-OECA] RIN 2020-AA51 Civil Monetary Penalty Inflation Adjustment Rule AGENCY:

    Environmental Protection Agency (EPA).

    ACTION:

    Interim final rule.

    SUMMARY:

    The Environmental Protection Agency (EPA) is promulgating this interim final rule to adjust the level of statutory civil monetary penalty amounts for the statutes that the agency administers. This action is mandated by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended through 2015 (“the 2015 Act”), which prescribes a formula for adjusting statutory civil penalties to reflect inflation, maintain the deterrent effect of statutory civil penalties, and promote compliance with the law. The rule does not necessarily revise the penalty amounts that EPA chooses to seek pursuant to its civil penalty policies in a particular case. EPA's civil penalty policies, which guide enforcement personnel in how to exercise EPA's statutory penalty authorities, take into account a number of fact-specific considerations, e.g., the seriousness of the violation, the violator's good faith efforts to comply, any economic benefit gained by the violator as a result of its noncompliance, and a violator's ability to pay.

    DATES:

    This interim final rule is effective on August 1, 2016.

    FOR FURTHER INFORMATION CONTACT:

    Susan O'Keefe, Office of Civil Enforcement, Office of Enforcement and Compliance Assurance, Environmental Protection Agency, 1200 Pennsylvania Avenue NW., Washington, DC 20460, telephone number: (202) 564-4021; [email protected]

    SUPPLEMENTARY INFORMATION:

    I. Background

    Since 1990, Federal agencies have been required to issue regulations adjusting for inflation the statutory civil penalties 1 that can be imposed under the laws administered by that agency. The Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 (DCIA), required agencies to review their statutory civil penalties every 4 years, and to adjust the statutory civil penalty amounts for inflation if the increase met the DCIA's adjustment methodology. In accordance with the DCIA, EPA reviewed and, as appropriate, adjusted the civil penalty levels under each of the statutes the agency implements in 1996 (61 FR 69360), 2004 (69 FR 7121), 2008 (73 FR 75340), and 2013 (78 FR 66643). Over time, the DCIA formula caused statutory civil penalties to lose value relative to total inflation.

    1 The Federal Civil Penalties Inflation Adjustment Act of 1990, Public Law 101-410, 28 U.S.C. 2461 note, defines “civil monetary penalty” as “any penalty, fine, or other sanction that—(A)(i) is for a specific monetary amount as provided by Federal law; or (ii) has a maximum amount provided for by Federal law; and (B) is assessed or enforced by an agency pursuant to Federal law; and (C) is assessed or enforced pursuant to an administrative proceeding or a civil action in the Federal courts.”

    The 2015 Act requires agencies to: (1) Adjust the level of statutory civil penalties with an initial “catch-up” adjustment through an interim final rulemaking; and (2) beginning January 15, 2017, make subsequent annual adjustments for inflation. This rule implements the statutorily mandated initial catch-up adjustments. The purpose of the 2015 Act 2 is to provide a mechanism to address these issues by translating originally enacted statutory civil penalty amounts to today's dollars and rounding statutory civil penalties to the nearest dollar. Once Federal agencies issue the 2016 one-time catch-up rule, each statutory civil penalty amount will be adjusted every year to reflect the inflation that has thereafter accrued.

    2 The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Section 701 of Pub. L. 114-74) was signed into law on Nov. 2, 2015, and further amended the Federal Civil Penalties Inflation Adjustment Act of 1990.

    Pursuant to section 5(b)(2)(A) of the 2015 Act, this initial catch-up “cost-of-living adjustment” is, for each statutory civil penalty, the percentage by which the Consumer Price Index for all Urban Consumers (CPI-U) for the month of October 2015 exceeds the CPI-U for the month of October of the year during which the amount of that civil penalty was established (i.e., originally enacted) or last adjusted by statute or regulation (other than pursuant to the Federal Civil Penalties Inflation Adjustment Act). However, section 5(b)(2)(C) of the 2015 Act provides that the maximum amount of any initial catch-up increase shall not exceed 150 percent of the level that was in effect on November 2, 2015. Table 2 to 40 CFR 19.4 presents the results of these calculations and adjustments, identifying: (1) The maximum or minimum 3 penalty level established when each statutory section was originally enacted or last adjusted by Congress; 4 and (2) the statutory maximum or minimum civil penalty level, adjusted for inflation under the 2015 Act, that applies to statutory civil penalties assessed on or after August 1, 2016 for violations that occurred after November 2, 2015, the date the 2015 Act was enacted.

    3 Under Section 3(2)(A) of the 2015 Act, “civil monetary penalty” means “a specific monetary amount as provided by Federal law”; or “has a maximum amount provided for by Federal law.” EPA-administered statutes generally refer to statutory maximum civil penalties, with the following exceptions: Section 311(b)(7)(D) of the Clean Water Act, 33 U.S.C. 1321(b)(7)(D), refers to a minimum penalty of “not less than $100,000 . . .”; Section 104B(d)(1) of the Marine Protection, Research, and Sanctuaries Act, 33 U.S.C. 1414b(d)(1), refers to an exact penalty of $600 “[f]or each dry ton (or equivalent) of sewage sludge or industrial waste dumped or transported by person in calendar year 1992 . . . ”; and Section 325(d)(1) of the Emergency Planning and Community Right-to-Know Act, 42 U.S.C. 11045(d)(1), refers to an exact civil penalty of $25,000 for each frivolous trade secret claim.

    4 Section 5(b)(2)(B) provides that the cost-of-living-adjustment “shall be applied to the amount of the civil monetary penalty as it was most recently established or adjusted under a provision of law other than under this Act.” Because EPA has not adjusted any of the statutory civil penalty levels identified at 40 CFR 19.4 for inflation outside of the inflation adjustments made pursuant to the DCIA, the initial cost-of-living adjustment is calculated based on the statutory civil penalty amount as originally enacted or last adjusted by Congress.

    The formula 5 for determining the cost-of-living or inflation adjustment to statutory civil penalties consists of the following five-step process:

    5 Office of Management and Budget Memorandum, Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvement Act of 2015 (OMB Memorandum M-16-06) at p. 8, Appendix (February 24, 2016).

    Step 1: Identify the latest year that the penalty level or range was established (i.e., originally enacted) or last adjusted by statute or regulation (other than pursuant to the Federal Civil Penalties Inflation Adjustment Act).

    Step 2: Calculate the cost-of-living adjustment, which is the percentage for that statutory civil penalty by which the CPI-U for the month of October 2015 exceeds the CPI-U for the month of October of the year identified in Step 1 (hereafter referred to the “cost-of-living multiplier.”) 6

    6See OMB Memorandum M-16-06 at p. 6 for a list of the applicable cost-of-living multipliers by year.

    Step 3: Multiply the statutory civil penalty level derived from Step 1 by the cost-of-living multiplier calculated in Step 2 and round to the nearest dollar.

    Step 4: To calculate the 150 percent increase limitation, identify the statutory civil penalty amount in effect on November 2, 2015 7 and multiply by 2.5.8

    7 78 FR 66643 (November 6, 2013).

    8 To calculate the 150 percent increase limitation, multiply the inflation adjusted statutory civil penalty amounts in effect on November 2, 2015 by 2.5 or 250 percent.

    Step 5: Compare the statutory civil penalty amounts in Step 3 and Step 4, and take the lesser of the two amounts. The lesser amount is the statutory maximum (or minimum) civil penalty that can be assessed on or after August 1, 2016, for violations that occur after November 2, 2015. Under this rule, these amounts are listed in Table 2 of 40 CFR 19.4.

    For example, with this rule, the new statutory maximum total penalty that may be assessed in an administrative penalty enforcement action under Clean Air Act (CAA) section 113(d)(1), 42 U.S.C. 7413(d)(1), and CAA section 205(c)(1), 42 U.S.C. 7524(c)(1), is increasing from $320,000 to $356,312.9 Both of these statutory maximum penalty amounts were established or last adjusted by Congress in 1990, meaning that the applicable cost-of-living multiplier is 1.78156. Multiplying the originally enacted statutory penalty level of $200,000 by the cost-of-living multiplier of 1.78156 yields a statutory civil penalty level of $356,312 (see Column D). To determine the 150 percent statutory cap, multiply the inflation adjusted statutory civil maximum penalty level of $320,000, in effect as of November 2, 2015, by 2.5, which equals $800,000 (see Column F). The new statutory civil penalty level is the lesser of the Columns D and F, resulting in an upward adjustment for inflation of $36,312 (see Column H) and the new statutory civil penalty level of $356,312 (see Column G).

    9 Note that CAA section 113(d)(1) and section 205(c)(1) authorize the imposition of a higher statutory maximum civil penalty in an administrative enforcement action if the EPA Administrator and the Attorney General jointly decide that a higher statutory maximum civil penalty is appropriate in a particular matter.

    Citation Year
  • enacted
  • Original statutory
  • civil
  • penalty level
  • Multiplier Original statutory civil penalty level × multipier Statutory civil penalty level as of November 2, 2015 Statutory civil penalty level (as of November 2, 2015) × 2.5 New statutory civil penalty level: The lesser of (D) and (F) Difference in penalty
  • levels
  • between
  • (G) and (E)
  • A B C D E F G H CLEAN AIR ACT (CAA), 42 U.S.C. 7413(d)(1), 7524(c)(1) 1990 $200,000 1.78156 $356,312 $320,000 $800,000 $356,312 $36,312

    The 2015 Act allows agencies to limit the catch-up adjustment to less than the otherwise required amount only under narrowly defined circumstances. To do so, EPA must determine, and the Director of the Office of Management and Budget (OMB) must concur, that “increasing the civil monetary penalty by the otherwise required amount will have a negative economic impact; or the social costs of increasing the civil monetary penalty by the otherwise required amount outweigh the benefits.”10 In its February 24, 2016 guidance to Federal agencies on the implementation of the 2015 Act, OMB made clear that it expects reductions from the statutorily prescribed catch-up adjustment levels “to be rare.”11 This rare exception does not apply to the civil penalty provisions covered by this rule.

    10 Section 4(c)(1) of the 2015 Act.

    11See OMB Memorandum M-16-06 at p.3.

    With this rule, the new statutory maximum (or minimum) penalty levels listed in Table 2 to 40 CFR 19.4 will apply to all statutory civil penalties assessed on or after August 1, 2016, for violations that occurred after November 2, 2015, when the 2015 Act was enacted. The statutory civil penalty levels, as codified at Table 1 to 40 CFR 19.4, will continue to apply to (1) violations that occurred on or before November 2, 2015, and (2) violations that occurred after November 2, 2015, where the penalty assessment was made prior to August 1, 2016.

    II. The 2015 Act Requires Federal Agencies To Issue These Adjustments by Interim Final Rule

    Section 4 of the 2015 Act directs Federal agencies to publish the initial catch-up adjustment through an interim final rule no later than July 1, 2016, which must be effective no later than August 1, 2016. Because the 2015 Act prescribes the formula that Federal agencies must follow to calculate the mandated inflation adjustments, the law does not provide Federal agencies any discretion to vary the amount of the statutory civil penalty changes to reflect any views or suggestions provided by commenters. Accordingly, pursuant to the 2015 Act and 5 U.S.C. 553(b)(3)(B), EPA finds that there is good cause to promulgate this rule without providing for public comment. It would be impracticable and unnecessary to delay publication of this rule pending opportunity for notice and comment because the 2015 Act does not allow agencies to alter the rule based on public comment.

    III. Statutory and Executive Order Reviews A. Executive Order 12866: Regulatory Planning and Review and Executive Order 13563: Improving Regulation and Regulatory Review

    Under Executive Order 12866, OMB determined this interim final rule to be a “non-significant” regulatory action and, therefore, it did not undergo interagency review.12

    12See OMB Memorandum M-16-06 at pp. 3-4.

    B. Paperwork Reduction Act (PRA)

    This action does not impose an information collection burden under the PRA. This rule merely increases the level of statutory civil penalties that could be imposed in the context of a Federal civil administrative enforcement action or civil judicial case for violations of EPA-administered statutes and their implementing regulations.

    C. Regulatory Flexibility Act (RFA)

    This action is not subject to the RFA. The RFA applies only to rules subject to notice and comment rulemaking requirements under the Administrative Procedure Act (APA), 5 U.S.C. 553, or any other statute. This rule is not subject to notice and comment requirements because the 2015 Act does not allow agencies to alter the rule based on public comment.

    D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain any unfunded mandate as described in UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect small governments. This action is required by the 2015 Act, without the exercise of any policy discretion by EPA. This action also imposes no enforceable duty on any state, local or tribal governments or the private sector. Because the calculation of any increase is formula-driven pursuant to the 2015 Act, EPA has no policy discretion to vary the amount of the adjustment.

    E. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have a substantial direct effect on the states, or on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government.

    F. Executive Order 13175: Consultation and Coordination With Indian Tribal Governments

    This action does not have tribal implications as specified in Executive Order 13175. This rule merely reconciles the real value of current statutory civil penalty levels to reflect and keep pace with the levels originally set by Congress when the statutes were enacted. The calculation of the increases is formula-driven and prescribed by statute, and EPA has no discretion to vary the amount of the adjustment to reflect any views or suggestions provided by commenters. Accordingly, this rule will not have a substantial direct effect on tribal governments, on the relationship between the Federal government and Indian tribes, or on the distribution of power and responsibilities between the Federal government and Indian tribes.

    G. Executive Order 13045: Protection of Children From Environmental Health Risks and Safety Risks

    The EPA interprets Executive Order 13045 as applying only to those regulatory actions that concern environmental health or safety risks that EPA has reason to believe may disproportionately affect children, per the definition of “covered regulatory action” in section 2-202 of the Executive Order. This action is not subject to Executive Order 13045 because it does not concern an environmental health risk or safety risk.

    H. Executive Order 13211: Actions That Significantly Affect Energy Supply, Distribution, or Use

    This action is not subject to Executive Order 13211 because it is not a significant regulatory action under Executive Order 12866.

    I. National Technology Transfer and Advancement Act

    The rule does not involve technical standards.

    J. Executive Order 12898: Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations

    Executive Order 12898 (59 FR 7629, February 16, 1994) establishes Federal executive policy on environmental justice. Its main provision directs Federal agencies, to the greatest extent practicable and permitted by law, to make environmental justice part of their mission by identifying and addressing, as appropriate, disproportionately high and adverse human health or environmental effects of their programs, policies, and activities on minority populations and low-income populations in the United States.

    The primary purpose of this rule is to reconcile the real value of current statutory civil penalty levels to reflect and keep pace with the levels originally set by Congress when the statutes were enacted. Because calculation of the increases is formula-driven, EPA has no discretion in updating the rule to reflect the allowable statutory civil penalties derived from applying the formula. Since there is no discretion under the 2015 Act in determining the statutory civil penalty level, EPA cannot vary the amount of the statutory civil penalty adjustment to address other issues, including environmental justice issues.

    K. Congressional Review Act (CRA)

    This action is subject to the CRA, and EPA will submit a rule report to each House of the Congress and to the Comptroller General of the United States. The CRA allows the issuing agency to make a rule effective sooner than otherwise provided by the CRA if the agency finds that notice and comment rulemaking procedures are impracticable, unnecessary or contrary to the public interest (5 U.S.C. 808(2)). This rule is not subject to notice and comment requirements because the 2015 Act does not allow agencies to alter the rule based on public comment.

    List of Subjects in 40 CFR Part 19

    Environmental protection, Administrative practice and procedure, Penalties.

    Dated: June 23, 2016. Gina McCarthy, Administrator.

    For the reasons set out in the preamble, title 40, chapter I, part 19 of the Code of Federal Regulations is amended as follows:

    PART 19—ADJUSTMENT OF CIVIL MONETARY PENALTIES FOR INFLATION 1. The authority citation for part 19 is revised to read as follows: Authority:

    Pub. L. 101-410, Oct. 5, 1990, 104 Stat. 890, as amended by Pub. L. 104-134, title III, sec. 31001(s)(1), Apr. 26, 1996, 110 Stat. 1321-373; Pub. L. 105-362, title XIII, sec. 1301(a), Nov. 10, 1998, 112 Stat. 3293; Pub. L. 114-74, title VII, sec. 701(b), Nov. 2, 2015, 129 Stat. 599.

    2. Revise § 19.2 to read as follows:
    § 19.2 Effective date.

    The penalty levels in the last column of Table 1 to § 19.4 apply to all violations which occurred after December 6, 2013 through November 2, 2015, and to violations occurring after November 2, 2015, where penalties are assessed before August 1, 2016. The statutory civil penalty levels set forth in the last column of Table 2 to § 19.4 apply to all violations which occur after November 2, 2015, where the penalties are assessed on or after August 1, 2016.

    3. Amend § 19.4 by: a. Revising the section heading and the introductory text; b. In Table 1, amending the last column heading by removing the text “Penalties effective after December 6, 2013”; and adding “Statutory civil penalties for violations that occurred after December 6, 2013 through November 2, 2015, or are assessed before August 1, 2016” in its place; and c. Adding a new Table 2.

    The revisions and addition read as follows:

    § 19.4 Statutory civil penalties, as adjusted for inflation, and tables.

    Table 1 to § 19.4 sets out the statutory civil penalty provisions of statutes administered by EPA, with the original statutory civil penalty levels, as enacted, and the operative statutory civil penalty levels, as adjusted for inflation, for violations occurring on or before November 2, 2015, and for violations occurring after November 2, 2015, where penalties are assessed before August 1, 2016. Table 2 sets out the statutory civil penalty provisions of statutes administered by EPA, with the original statutory civil penalty levels, as enacted, with the last column displaying the operative statutory civil penalty levels where penalties are assessed on or after August 1, 2016, for violations that occurred after November 2, 2015.

    1 Note that 7 U.S.C. 136l.(a)(2) contains three separate statutory maximum civil penalty provisions. The first mention of $1,000 and the $500 statutory maximum civil penalty amount were originally enacted in 1978 (Pub. L 95-396), and the second mention of $1,000 was enacted in 1972 (Pub. L. 92-516).

    Table 2 of Section 19.4—Civil Monetary Penalty Inflation Adjustments  U.S. Code citation Environmental statute Statutory civil penalties, as enacted Statutory civil penalties for violations that
  • occurred after
  • November 2, 2015 and assessed on or after August 1, 2016
  • 7 U.S.C. 136l.(a)(1) FEDERAL INSECTICIDE, FUNGICIDE, AND RODENTICIDE ACT (FIFRA) $5,000 $18,750 7 U.S.C. 136l.(a)(2) 1 FIFRA 1,000/500/1,000 2,750/1,772/2,750 15 U.S.C. 2615(a)(1) TOXIC SUBSTANCES CONTROL ACT (TSCA) 25,000 37,500 15 U.S.C. 2647(a) TSCA 5,000 10,781 15 U.S.C. 2647(g) TSCA 5,000 8,908 31 U.S.C. 3802(a)(1) PROGRAM FRAUD CIVIL REMEDIES ACT (PFCRA) 5,000 10,781 31 U.S.C. 3802(a)(2) PFCRA 5,000 10,781 33 U.S.C. 1319(d) CLEAN WATER ACT (CWA) 25,000 51,570 33 U.S.C. 1319(g)(2)(A) CWA 10,000/25,000 20,628/51,570 33 U.S.C. 1319(g)(2)(B) CWA 10,000/125,000 20,628/257,848 33 U.S.C. 1321(b)(6)(B)(i) CWA 10,000/25,000 17,816/44,539 33 U.S.C. 1321(b)(6)(B)(ii) CWA 10,000/125,000 17,816/222,695 33 U.S.C. 1321(b)(7)(A) CWA 25,000/1,000 44,539/1,782 33 U.S.C. 1321(b)(7)(B) CWA 25,000 44,539 33 U.S.C. 1321(b)(7)(C) CWA 25,000 44,539 33 U.S.C. 1321(b)(7)(D) CWA 100,000/3,000 178,156/5,345 33 U.S.C. 1414b(d)(1) MARINE PROTECTION, RESEARCH, AND SANCTUARIES ACT (MPRSA) 600 1,187 33 U.S.C. 1415(a) MPRSA 50,000/125,000 187,500/247,336 33 U.S.C. 1901 note (see 1409(a)(2)(A)) CERTAIN ALASKAN CRUISE SHIP OPERATIONS (CACSO) 10,000/25,000 13,669/34,172 33 U.S.C. 1901 note (see 1409(a)(2)(B)) CACSO 10,000/125,000 13,669/170,861 33 U.S.C. 1901 note (see 1409(b)(1)) CACSO 25,000 34,172 33 U.S.C. 1908(b)(1) ACT TO PREVENT POLLUTION FROM SHIPS (APPS) 25,000 70,117 33 U.S.C. 1908(b)(2) APPS 5,000 14,023 42 U.S.C. 300g-3(b) SAFE DRINKING WATER ACT (SDWA) 25,000 53,907 42 U.S.C. 300g-3(g)(3)(A) SDWA 25,000 53,907 42 U.S.C. 300g-3(g)(3)(B) SDWA 5,000/25,000 10,781/37,561 42 U.S.C. 300g-3(g)(3)(C) SDWA 25,000 37,561 42 U.S.C. 300h-2(b)(1) SDWA 25,000 53,907 42 U.S.C. 300h-2(c)(1) SDWA 10,000/125,000 21,563/269,535 42 U.S.C. 300h-2(c)(2) SDWA 5,000/125,000 10,781/269,535 42 U.S.C. 300h-3(c) SDWA 5,000/10,000 18,750/40,000 42 U.S.C. 300i(b) SDWA 15,000 22,537 42 U.S.C. 300i-1(c) SDWA 100,000/1,000,000 131,185/1,311,850 42 U.S.C. 300j(e)(2) SDWA 2,500 9,375 42 U.S.C. 300j-4(c) SDWA 25,000 53,907 42 U.S.C. 300j-6(b)(2) SDWA 25,000 37,561 42 U.S.C. 300j-23(d) SDWA 5,000/50,000 9,893/98,935 42 U.S.C. 4852d(b)(5) RESIDENTIAL LEAD—BASED PAINT HAZARD REDUCTION ACT OF 1992 10,000 16,773 42 U.S.C. 4910(a)(2) NOISE CONTROL ACT OF 1972 10,000 35,445 42 U.S.C. 6928(a)(3) RESOURCE CONSERVATION AND RECOVERY ACT (RCRA) 25,000 93,750 42 U.S.C. 6928(c) RCRA 25,000 56,467 42 U.S.C. 6928(g) RCRA 25,000 70,117 42 U.S.C. 6928(h)(2) RCRA 25,000 56,467 42 U.S.C. 6934(e) RCRA 5,000 14,023 42 U.S.C. 6973(b) RCRA 5,000 14,023 42 U.S.C. 6991e(a)(3) RCRA 25,000 56,467 42 U.S.C. 6991e(d)(1) RCRA 10,000 22,587 42 U.S.C. 6991e(d)(2) RCRA 10,000 22,587 42 U.S.C. 7413(b) CLEAN AIR ACT (CAA) 25,000 93,750 42 U.S.C. 7413(d)(1) CAA 25,000/200,000 44,539/356,312 42 U.S.C. 7413(d)(3) CAA 5,000 8,908 42 U.S.C. 7524(a) CAA 25,000/2,500 44,539/4,454 42 U.S.C. 7524(c)(1) CAA 200,000 356,312 42 U.S.C. 7545(d)(1) CAA 25,000 44,539 42 U.S.C. 9604(e)(5)(B) COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITY ACT (CERCLA) 25,000 53,907 42 U.S.C. 9606(b)(1) CERCLA 25,000 53,907 42 U.S.C. 9609(a)(1) CERCLA 25,000 53,907 42 U.S.C. 9609(b) CERCLA 25,000/75,000 53,907/161,721 42 U.S.C. 9609(c) CERCLA 25,000/75,000 53,907/161,721 42 U.S.C. 11045(a) EMERGENCY PLANNING AND COMMUNITY RIGHT-TO-KNOW ACT (EPCRA) 25,000 53,907 42 U.S.C. 11045(b)(1)(A) EPCRA 25,000 53,907 42 U.S.C. 11045(b)(2) EPCRA 25,000/75,000 53,907/161,721 42 U.S.C. 11045(b)(3) EPCRA 25,000/75,000 53,907/161,721 42 U.S.C. 11045(c)(1) EPCRA 25,000 53,907 42 U.S.C. 11045(c)(2) EPCRA 10,000 21,563 42 U.S.C. 11045(d)(1) EPCRA 25,000 53,907 42 U.S.C. 14304(a)(1) MERCURY—CONTAINING AND RECHARGEABLE BATTERY MANAGEMENT ACT (BATTERY ACT) 10,000 15,025 42 U.S.C. 14304(g) BATTERY ACT 10,000 15,025
    [FR Doc. 2016-15411 Filed 6-30-16; 8:45 am] BILLING CODE 6560-50-P
    ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [Docket No. EPA-R02-OAR-2016-0059; FRL-9948-57-Region 2] Approval of Air Quality Implementation Plans; New Jersey, Carbon Monoxide Maintenance Plan AGENCY:

    Environmental Protection Agency (EPA).

    ACTION:

    Final rule.

    SUMMARY:

    The Environmental Protection Agency (EPA) is approving a State Implementation Plan (SIP) revision submitted by the New Jersey Department of Environmental Protection. This revision establishes an updated ten-year carbon monoxide (CO) limited maintenance plan for the New Jersey portion of the New York-Northern New Jersey-Long Island (NYNNJLI) CO area which includes the following areas: Hudson, Essex, Bergen, and Union Counties, and the municipalities of Clifton, Passaic and Paterson in Passaic County. New Jersey qualifies for a limited maintenance plan, rather than a full maintenance plan, because monitoring concentrations of CO are less than 85% of the standard. In a limited maintenance plan, future-year projection inventories and transportation conformity budgets are not required. In addition, EPA is also approving the 2007 Attainment/Base Year CO emissions inventory and the shutdown of 5 CO maintenance monitors in New Jersey.

    The New Jersey portion of the NYNNJLI CO area was redesignated to attainment of the CO National Ambient Air Quality Standard (NAAQS) on August 23, 2002 and a maintenance plan was also approved at that time. By this action, EPA is approving a second limited maintenance plan for this area because it provides for continued attainment of the CO NAAQS for an additional ten years. The intended effect of this rulemaking is to approve a SIP revision that will insure continued maintenance of the CO NAAQS.

    DATES:

    This final rule is effective on August 1, 2016.

    ADDRESSES:

    The EPA has established a docket for this action under Docket ID No. EPA-R02-OAR-2016-0059. All documents in the docket are listed on the http://www.regulations.gov Web site. Although listed in the index, some information is not publicly available, e.g., CBI or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the Internet and will be publicly available only in hard copy form. Publicly available docket materials are available electronically through http://www.regulations.gov.

    FOR FURTHER INFORMATION CONTACT:

    Henry Feingersh, Air Programs Branch, Environmental Protection Agency, 290 Broadway, 25th Floor, New York, New York 10007-1866, telephone number (212) 637-3382, or by email at [email protected]

    SUPPLEMENTARY INFORMATION:

    The supplementary Information section is arranged as follows:

    Table of Contents I. What Action is EPA Taking? II. What Comments did EPA Receive on its Proposal and What are EPA's Responses? III. What is the Adequacy Status of the CO Limited Maintenance Plan for the New Jersey Portion of the New York-Northern New Jersey-Long Island Area? IV. What is EPA's Final Action? V. Statutory and Executive Order Reviews I. What action is EPA taking?

    EPA is approving New Jersey's SIP revision updating their existing ten-year carbon monoxide (CO) maintenance plan for the New Jersey portion of the New York-Northern New Jersey-Long Island (NYNNJLI) CO area, which includes the following areas: Hudson, Essex, Bergen, and Union Counties, and the municipalities of Clifton, Passaic and Paterson in Passaic County, with another ten-year plan. The reader is referred to the March 25, 2016 (81 FR 16102) proposal for details on this rulemaking.

    II. What comments did EPA receive on its proposal and what are EPA's responses?

    EPA did not receive any comments on our proposed approval of the updated CO limited maintenance plan. EPA is approving the New Jersey SIP revision request.

    III. What is the adequacy status of the CO limited maintenance plan for the New Jersey portion of the New York-Northern New Jersey-Long Island area?

    Section 118(e) of the transportation conformity rule (40 CFR part 93) states that a conformity determination cannot be made using submitted motor vehicle emission budgets (“budgets”) until EPA makes a positive determination that the submitted budgets are adequate. In accordance with our rule, the limited maintenance plan for the New Jersey portion of the New York-Northern New Jersey-Long Island (NYNNJLI) CO area was posted for adequacy review on July 27, 2015 on EPA's conformity Web site: http://www.epa.gov/otaq/stateresources/transconf/adequacy.htm.

    As a general rule, however, limited maintenance plans, such as the maintenance plan for the NYNNJLI CO area, do not include budgets. Instead, for those areas that qualify under our limited maintenance plan policy for CO, we have concluded that the area will continue to maintain the CO NAAQS regardless of the quantity of emissions from the on-road transportation sector, and thus there is no need to cap emissions from the on-road transportation sector for the maintenance period.

    Therefore, EPA's adequacy review of the limited maintenance plan for the NYNNJLI CO area primarily focuses on whether the area qualifies for the applicable limited maintenance plan policy for CO. From our review, EPA has concluded that the NYNNJLI CO area meets the criteria for a limited maintenance plan, and therefore we find the maintenance plan for the NYNNJLI CO area adequate for conformity purposes under our limited maintenance plan policy.

    IV. What is EPA's final action?

    EPA is approving New Jersey's SIP revision updating their existing ten-year CO maintenance plan for the New Jersey portion of the New York-Northern New Jersey-Long Island (NYNNJLI) CO area. EPA is also approving the 2007 CO base year emissions inventory and the shutdown of 5 CO maintenance monitors in New Jersey.

    V. Statutory and Executive Order Reviews

    Under the Clean Air Act, the Administrator is required to approve a SIP submission that complies with the provisions of the Act and applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in reviewing SIP submissions, EPA's role is to approve state choices, provided that they meet the criteria of the Clean Air Act. Accordingly, this action merely approves state law as meeting Federal requirements and does not impose additional requirements beyond those imposed by state law. For that reason, this action:

    • Is not a “significant regulatory action” subject to review by the Office of Management and Budget under Executive Order 12866 (58 FR 51735, October 4, 1993);

    • Does not impose an information collection burden under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);

    • Is certified as not having a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.);

    • Does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4);

    • Does not have Federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999);

    • Is not an economically significant regulatory action based on health or safety risks subject to Executive Order 13045 (62 FR 19885, April 23, 1997);

    • Is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001);

    • Is not subject to requirements of section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the Clean Air Act; and

    • Does not provide EPA with the discretionary authority to address, as appropriate, disproportionate human health or environmental effects, using practicable and legally permissible methods, under Executive Order 12898 (59 FR 7629, February 16, 1994).

    In addition, this rule does not have tribal implications as specified by Executive Order 13175 (65 FR 67249, November 9, 2000), because the SIP is not approved to apply in Indian country located in the state, and EPA notes that it will not impose substantial direct costs on tribal governments or preempt tribal law.

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the Small Business Regulatory Enforcement Fairness Act of 1996, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. EPA will submit a report containing this action and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to publication of the rule in the Federal Register. A major rule cannot take effect until 60 days after it is published in the Federal Register. This action is not a “major rule” as defined by 5 U.S.C. 804(2).

    Under section 307(b)(1) of the Clean Air Act, petitions for judicial review of this action must be filed in the United States Court of Appeals for the appropriate circuit by August 30, 2016. Filing a petition for reconsideration by the Administrator of this final rule does not affect the finality of this action for the purposes of judicial review nor does it extend the time within which a petition for judicial review may be filed, and shall not postpone the effectiveness of such rule or action. This action may not be challenged later in proceedings to enforce its requirements. (See section 307(b)(2)).

    List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide, Incorporation by reference, Intergovernmental relations, Reporting and recordkeeping requirements.

    Dated: June 21, 2016. Judith A. Enck, Regional Administrator, Region 2.

    For the reasons set forth in the preamble, the Environmental Protection Agency amends part 52 of chapter I, title 40 of the Code of Federal Regulations as follows:

    PART 52—APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS 1. The authority citation for part 52 continues to read as follows: Authority:

    42 U.S.C. 7401 et seq.

    Subpart FF—New Jersey
    2. Section 52.1581 is amended by adding paragraph (f) to read as follows:
    § 52.1581 Control strategy: Carbon monoxide.

    (f) Approval—The June 11, 2015 and February 8, 2016 revisions to the carbon monoxide (CO) maintenance plan for the New Jersey portion of the New York-Northern New Jersey-Long Island, NYNNJLI, CO area. These revisions contain a second ten-year limited maintenance plan that demonstrates continued attainment of the National Ambient Air Quality Standard for CO through the year 2024, a 2007 CO base year emissions inventory, and the shutdown of five CO maintenance monitors.

    [FR Doc. 2016-15609 Filed 6-30-16; 8:45 am] BILLING CODE 6560-50-P
    ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 180 [EPA-HQ-OPP-2016-0118; FRL-9947-34] 2-propenoic acid, 2-methyl-, 2-oxiranylmethyl ester, polymer With ethene, ethenyl acetate, ethenyltrimethoxysilane and sodium ethenesulfonate (1:1); Tolerance Exemption AGENCY:

    Environmental Protection Agency (EPA).

    ACTION:

    Final rule.

    SUMMARY:

    This regulation establishes an exemption from the requirement of a tolerance for residues of 2-propenoic acid, 2-methyl-, 2-oxiranylmethyl ester, polymer with ethene, ethenyl acetate, ethenyltrimethoxysilane and sodium ethenesulfonate (1:1); when used as an inert ingredient in a pesticide chemical formulation. Celanese Ltd. submitted a petition to EPA under the Federal Food, Drug, and Cosmetic Act (FFDCA), requesting an exemption from the requirement of a tolerance. This regulation eliminates the need to establish a maximum permissible level for residues of 2-propenoic acid, 2-methyl-, 2-oxiranylmethyl ester, polymer with ethene, ethenyl acetate, ethenyltrimethoxysilane and sodium ethenesulfonate (1:1) on food or feed commodities.

    DATES:

    This regulation is effective July 1, 2016. Objections and requests for hearings must be received on or before August 30, 2016, and must be filed in accordance with the instructions provided in 40 CFR part 178 (see also Unit I.C. of the SUPPLEMENTARY INFORMATION).

    ADDRESSES:

    The docket for this action, identified by docket identification (ID) number EPA-HQ-OPP-2016-0118, is available at http://www.regulations.gov or at the Office of Pesticide Programs Regulatory Public Docket (OPP Docket) in the Environmental Protection Agency Docket Center (EPA/DC), West William Jefferson Clinton Bldg., Rm. 3334, 1301 Constitution Ave. NW., Washington, DC 20460-0001. The Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Public Reading Room is (202) 566-1744, and the telephone number for the OPP Docket is (703) 305-5805. Please review the visitor instructions and additional information about the docket available at http://www.epa.gov/dockets.

    FOR FURTHER INFORMATION CONTACT:

    Susan Lewis, Registration Division (7505P), Office of Pesticide Programs, Environmental Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460-0001; main telephone number: (703) 305-7090; email address: [email protected]

    SUPPLEMENTARY INFORMATION:

    I. General Information A. Does this action apply to me?

    You may be potentially affected by this action if you are an agricultural producer, food manufacturer, or pesticide manufacturer. The following list of North American Industrial Classification System (NAICS) codes is not intended to be exhaustive, but rather provides a guide to help readers determine whether this document applies to them. Potentially affected entities may include:

    • Crop production (NAICS code 111).

    • Animal production (NAICS code 112).

    • Food manufacturing (NAICS code 311).

    • Pesticide manufacturing (NAICS code 32532).

    B. How can I get electronic access to other related information?

    You may access a frequently updated electronic version of 40 CFR part 180 through the Government Publishing Office's e-CFR site at http://www.ecfr.gov/cgi-bin/text-idx?&c=ecfr&tpl=/ecfrbrowse/Title40/40tab_02.tpl.

    C. Can I file an objection or hearing request?

    Under FFDCA section 408(g), 21 U.S.C. 346a, any person may file an objection to any aspect of this regulation and may also request a hearing on those objections. You must file your objection or request a hearing on this regulation in accordance with the instructions provided in 40 CFR part 178. To ensure proper receipt by EPA, you must identify docket ID number EPA-HQ-OPP-2016-0118 in the subject line on the first page of your submission. All objections and requests for a hearing must be in writing, and must be received by the Hearing Clerk on or before August 30, 2016. Addresses for mail and hand delivery of objections and hearing requests are provided in 40 CFR 178.25(b).

    In addition to filing an objection or hearing request with the Hearing Clerk as described in 40 CFR part 178, please submit a copy of the filing (excluding any Confidential Business Information (CBI)) for inclusion in the public docket. Information not marked confidential pursuant to 40 CFR part 2 may be disclosed publicly by EPA without prior notice. Submit the non-CBI copy of your objection or hearing request, identified by docket ID number EPA-HQ-OPP-2016-0118, by one of the following methods.

    Federal eRulemaking Portal: http://www.regulations.gov. Follow the online instructions for submitting comments. Do not submit electronically any information you consider to be CBI or other information whose disclosure is restricted by statute.

    Mail: OPP Docket, Environmental Protection Agency Docket Center (EPA/DC), (28221T), 1200 Pennsylvania Ave. NW., Washington, DC 20460-0001.

    Hand Delivery: To make special arrangements for hand delivery or delivery of boxed information, please follow the instructions at http://www.epa.gov/dockets/contacts.html.

    Additional instructions on commenting or visiting the docket, along with more information about dockets generally, is available at http://www.epa.gov/dockets.

    II. Background and Statutory Findings

    In the Federal Register of April 25, 2016 (81 FR 24044) (FRL-9944-86), EPA issued a document pursuant to FFDCA section 408, 21 U.S.C. 346a, announcing the receipt of a pesticide petition (PP IN-10899) filed by Celanese Ltd., 222 W Las Colinas Blvd., Suite 900N, Irving, TX 75039. The petition requested that 40 CFR 180.960 be amended by establishing an exemption from the requirement of a tolerance for residues of 2-propenoic acid, 2-methyl-, 2-oxiranylmethyl ester, polymer with ethene, ethenyl acetate, ethenyltrimethoxysilane and sodium ethenesulfonate (1:1); CAS Reg. No. 518057-54-0. That document included a summary of the petition prepared by the petitioner and solicited comments on the petitioner's request. The Agency did not receive any comments.

    Section 408(c)(2)(A)(i) of FFDCA allows EPA to establish an exemption from the requirement for a tolerance (the legal limit for a pesticide chemical residue in or on a food) only if EPA determines that the exemption is “safe.” Section 408(c)(2)(A)(ii) of FFDCA defines “safe” to mean that “there is a reasonable certainty that no harm will result from aggregate exposure to the pesticide chemical residue, including all anticipated dietary exposures and all other exposures for which there is reliable information.” This includes exposure through drinking water and use in residential settings, but does not include occupational exposure. Section 408(b)(2)(C) of FFDCA requires EPA to give special consideration to exposure of infants and children to the pesticide chemical residue in establishing an exemption from the requirement of a tolerance and to “ensure that there is a reasonable certainty that no harm will result to infants and children from aggregate exposure to the pesticide chemical residue . . .” and specifies factors EPA is to consider in establishing an exemption.

    III. Risk Assessment and Statutory Findings

    EPA establishes exemptions from the requirement of a tolerance only in those cases where it can be shown that the risks from aggregate exposure to pesticide chemical residues under reasonably foreseeable circumstances will pose no appreciable risks to human health. In order to determine the risks from aggregate exposure to pesticide inert ingredients, the Agency considers the toxicity of the inert in conjunction with possible exposure to residues of the inert ingredient through food, drinking water, and through other exposures that occur as a result of pesticide use in residential settings. If EPA is able to determine that a finite tolerance is not necessary to ensure that there is a reasonable certainty that no harm will result from aggregate exposure to the inert ingredient, an exemption from the requirement of a tolerance may be established.

    Consistent with FFDCA section 408(b)(2)(D), EPA has reviewed the available scientific data and other relevant information in support of this action and considered its validity, completeness and reliability and the relationship of this information to human risk. EPA has also considered available information concerning the variability of the sensitivities of major identifiable subgroups of consumers, including infants and children. In the case of certain chemical substances that are defined as polymers, the Agency has established a set of criteria to identify categories of polymers expected to present minimal or no risk. The definition of a polymer is given in 40 CFR 723.250(b) and the exclusion criteria for identifying these low-risk polymers are described in 40 CFR 723.250(d). 2-propenoic acid, 2-methyl-, 2-oxiranylmethyl ester, polymer with ethene, ethenyl acetate, ethenyltrimethoxysilane and sodium ethenesulfonate (1:1) conforms to the definition of a polymer given in 40 CFR 723.250(b) and meets the following criteria that are used to identify low-risk polymers.

    1. The polymer is not a cationic polymer nor is it reasonably anticipated to become a cationic polymer in a natural aquatic environment.

    2. The polymer does contain as an integral part of its composition at least two of the atomic elements carbon, hydrogen, nitrogen, oxygen, silicon, and sulfur.

    3. The polymer does not contain as an integral part of its composition, except as impurities, any element other than those listed in 40 CFR 723.250(d)(2)(ii).

    4. The polymer is neither designed nor can it be reasonably anticipated to substantially degrade, decompose, or depolymerize.

    5. The polymer is manufactured or imported from monomers and/or reactants that are already included on the TSCA Chemical Substance Inventory or manufactured under an applicable TSCA section 5 exemption.

    6. The polymer is not a water absorbing polymer with a number average molecular weight (MW) greater than or equal to 10,000 daltons.

    7. The polymer does not contain certain perfluoroalkyl moieties consisting of a CF3- or longer chain length as listed in 40 CFR 723.250(d)(6).

    Additionally, the polymer also meets as required the following exemption criteria specified in 40 CFR 723.250(e):

    8. The polymer's number average MW of 20,000 is greater than or equal to 10,000 daltons. The polymer contains less than 2% oligomeric material below MW 500 and less than 5% oligomeric material below MW 1,000.

    Thus, 2-propenoic acid, 2-methyl-, 2-oxiranylmethyl ester, polymer with ethene, ethenyl acetate, ethenyltrimethoxysilane and sodium ethenesulfonate (1:1) meets the criteria for a polymer to be considered low risk under 40 CFR 723.250. Based on its conformance to the criteria in this unit, no mammalian toxicity is anticipated from dietary, inhalation, or dermal exposure to 2-propenoic acid, 2-methyl-, 2-oxiranylmethyl ester, polymer with ethene, ethenyl acetate, ethenyltrimethoxysilane and sodium ethenesulfonate (1:1).

    IV. Aggregate Exposures

    For the purposes of assessing potential exposure under this exemption, EPA considered that 2-propenoic acid, 2-methyl-, 2-oxiranylmethyl ester, polymer with ethene, ethenyl acetate, ethenyltrimethoxysilane and sodium ethenesulfonate (1:1) could be present in all raw and processed agricultural commodities and drinking water, and that non-occupational non-dietary exposure was possible. The number average MW of 2-propenoic acid, 2-methyl-, 2-oxiranylmethyl ester, polymer with ethene, ethenyl acetate, ethenyltrimethoxysilane and sodium ethenesulfonate (1:1) is 20,000 daltons. Generally, a polymer of this size would be poorly absorbed through the intact gastrointestinal tract or through intact human skin. Since 2-propenoic acid, 2-methyl-, 2-oxiranylmethyl ester, polymer with ethene, ethenyl acetate, ethenyltrimethoxysilane and sodium ethenesulfonate (1:1) conform to the criteria that identify a low-risk polymer, there are no concerns for risks associated with any potential exposure scenarios that are reasonably foreseeable. The Agency has determined that a tolerance is not necessary to protect the public health.

    V. Cumulative Effects From Substances With a Common Mechanism of Toxicity

    Section 408(b)(2)(D)(v) of FFDCA requires that, when considering whether to establish, modify, or revoke a tolerance, the Agency consider “available information” concerning the cumulative effects of a particular pesticide's residues and “other substances that have a common mechanism of toxicity.”

    EPA has not found 2-propenoic acid, 2-methyl-, 2-oxiranylmethyl ester, polymer with ethene, ethenyl acetate, ethenyltrimethoxysilane and sodium ethenesulfonate (1:1) to share a common mechanism of toxicity with any other substances, and 2-propenoic acid, 2-methyl-, 2-oxiranylmethyl ester, polymer with ethene, ethenyl acetate, ethenyltrimethoxysilane and sodium ethenesulfonate (1:1) does not appear to produce a toxic metabolite produced by other substances. For the purposes of this tolerance action, therefore, EPA has assumed that 2-propenoic acid, 2-methyl-, 2-oxiranylmethyl ester, polymer with ethene, ethenyl acetate, ethenyltrimethoxysilane and sodium ethenesulfonate (1:1) does not have a common mechanism of toxicity with other substances. For information regarding EPA's efforts to determine which chemicals have a common mechanism of toxicity and to evaluate the cumulative effects of such chemicals, see EPA's Web site at http://www.epa.gov/pesticides/cumulative.

    VI. Additional Safety Factor for the Protection of Infants and Children

    Section 408(b)(2)(C) of FFDCA provides that EPA shall apply an additional tenfold margin of safety for infants and children in the case of threshold effects to account for prenatal and postnatal toxicity and the completeness of the data base unless EPA concludes that a different margin of safety will be safe for infants and children. Due to the expected low toxicity of 2-propenoic acid, 2-methyl-, 2-oxiranylmethyl ester, polymer with ethene, ethenyl acetate, ethenyltrimethoxysilane and sodium ethenesulfonate (1:1), EPA has not used a safety factor analysis to assess the risk. For the same reasons the additional tenfold safety factor is unnecessary.

    VII. Determination of Safety

    Based on the conformance to the criteria used to identify a low-risk polymer, EPA concludes that there is a reasonable certainty of no harm to the U.S. population, including infants and children, from aggregate exposure to residues of 2-propenoic acid, 2-methyl-, 2-oxiranylmethyl ester, polymer with ethene, ethenyl acetate, ethenyltrimethoxysilane and sodium ethenesulfonate (1:1).

    VIII. Other Considerations A. Analytical Enforcement Methodology

    An analytical method is not required for enforcement purposes since the Agency is establishing an exemption from the requirement of a tolerance without any numerical limitation.

    B. International Residue Limits

    In making its tolerance decisions, EPA seeks to harmonize U.S. tolerances with international standards whenever possible, consistent with U.S. food safety standards and agricultural practices. EPA considers the international maximum residue limits (MRLs) established by the Codex Alimentarius Commission (Codex), as required by FFDCA section 408(b)(4). The Codex Alimentarius is a joint United Nations Food and Agriculture Organization/World Health Organization food standards program, and it is recognized as an international food safety standards-setting organization in trade agreements to which the United States is a party. EPA may establish a tolerance that is different from a Codex MRL; however, FFDCA section 408(b)(4) requires that EPA explain the reasons for departing from the Codex level.

    The Codex has not established a MRL for 2-propenoic acid, 2-methyl-, 2-oxiranylmethyl ester, polymer with ethene, ethenyl acetate, ethenyltrimethoxysilane and sodium ethenesulfonate (1:1).

    IX. Conclusion

    Accordingly, EPA finds that exempting residues of 2-propenoic acid, 2-methyl-, 2-oxiranylmethyl ester, polymer with ethene, ethenyl acetate, ethenyltrimethoxysilane and sodium ethenesulfonate (1:1) from the requirement of a tolerance will be safe.

    X. Statutory and Executive Order Reviews

    This action establishes a tolerance under FFDCA section 408(d) in response to a petition submitted to the Agency. The Office of Management and Budget (OMB) has exempted these types of actions from review under Executive Order 12866, entitled “Regulatory Planning and Review” (58 FR 51735, October 4, 1993). Because this action has been exempted from review under Executive Order 12866, this action is not subject to Executive Order 13211, entitled “Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use” (66 FR 28355, May 22, 2001) or Executive Order 13045, entitled “Protection of Children from Environmental Health Risks and Safety Risks” (62 FR 19885, April 23, 1997). This action does not contain any information collections subject to OMB approval under the Paperwork Reduction Act (PRA) (44 U.S.C. 3501 et seq.), nor does it require any special considerations under Executive Order 12898, entitled “Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations” (59 FR 7629, February 16, 1994).

    Since tolerances and exemptions that are established on the basis of a petition under FFDCA section 408(d), such as the tolerance in this final rule, do not require the issuance of a proposed rule, the requirements of the Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.), do not apply.

    This action directly regulates growers, food processors, food handlers, and food retailers, not States or tribes, nor does this action alter the relationships or distribution of power and responsibilities established by Congress in the preemption provisions of FFDCA section 408(n)(4). As such, the Agency has determined that this action will not have a substantial direct effect on States or tribal governments, on the relationship between the national government and the States or tribal governments, or on the distribution of power and responsibilities among the various levels of government or between the Federal Government and Indian tribes. Thus, the Agency has determined that Executive Order 13132, entitled “Federalism” (64 FR 43255, August 10, 1999) and Executive Order 13175, entitled “Consultation and Coordination with Indian Tribal Governments” (65 FR 67249, November 9, 2000) do not apply to this action. In addition, this action does not impose any enforceable duty or contain any unfunded mandate as described under Title II of the Unfunded Mandates Reform Act (UMRA) (2 U.S.C. 1501 et seq.).

    This action does not involve any technical standards that would require Agency consideration of voluntary consensus standards pursuant to section 12(d) of the National Technology Transfer and Advancement Act (NTTAA) (15 U.S.C. 272 note).

    XI. Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), EPA will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to publication of the rule in the Federal Register. This action is not a “major rule” as defined by 5 U.S.C. 804(2).

    List of Subjects in 40 CFR Part 180

    Environmental protection, Administrative practice and procedure, Agricultural commodities, Pesticides and pests, Reporting and recordkeeping requirements.

    Dated: June 16, 2016. Susan Lewis, Director, Registration Division, Office of Pesticide Programs.

    Therefore, 40 CFR chapter I is amended as follows:

    PART 180—[AMENDED] 1. The authority citation for part 180 continues to read as follows: Authority:

    21 U.S.C. 321(q), 346a and 371.

    2. In § 180.960, add alphabetically the polymer “2-propenoic acid, 2-methyl-, 2-oxiranylmethyl ester, polymer with ethene, ethenyl acetate, ethenyltrimethoxysilane and sodium ethenesulfonate (1:1), minimum number average molecular weight (in amu), 20,000” to the table to read as follows:
    § 180.960 Polymers; exemptions from the requirement of a tolerance. Polymer CAS No. *         *         *         *         *         *         * 2-propenoic acid, 2-methyl-, 2-oxiranylmethyl ester, polymer with ethene, ethenyl acetate, ethenyltrimethoxysilane and sodium ethenesulfonate (1:1), minimum number average molecular weight (in amu), 20,000 518057-54-0 *         *         *         *         *         *         *
    [FR Doc. 2016-15614 Filed 6-30-16; 8:45 am] BILLING CODE 6560-50-P
    ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 1065 Engine-Testing Procedures; CFR Correction

    In Title 40 of the Code of Federal Regulations, Parts 1000 to End, revised as of July 1, 2015, on page 857, in § 1065.670, the second paragraph of introductory text is removed.

    [FR Doc. 2016-15805 Filed 6-30-16; 8:45 am] BILLING CODE 1505-01-D
    FEDERAL COMMUNICATIONS COMMISSION 47 CFR Part 73 [DA 16-656; MB Docket No. 16-74; RM-11763] Radio Broadcasting Services; Raymond, Washington AGENCY:

    Federal Communications Commission.

    ACTION:

    Final rule.

    SUMMARY:

    At the request of Sunnylands Broadcasting, LLC, the Audio Division amends the FM Table of Allotments, by allotting Channel 300A at Raymond, Washington, as the community's second local service. A staff engineering analysis indicates Channel 300A can be allotted to Raymond consistent with the minimum distance separation requirements of the Commission's rules with a site restriction located 4.7 kilometers (3.0 miles) southwest of the community. The reference coordinates are 46-38-49 NL and 123-45-11 WL.

    DATES:

    Effective August 1, 2016.

    FOR FURTHER INFORMATION CONTACT:

    Adrienne Y. Denysyk, Media Bureau, (202) 418-2700.

    SUPPLEMENTARY INFORMATION:

    This is a synopsis of the Commission's Report and Order, MB Docket No. 16-74, adopted June 17, 2016, and released June 17, 2016. The full text of this Commission decision is available for inspection and copying during normal business hours in the FCC's Reference Information Center at Portals II, CY-A257, 445 12th Street SW., Washington, DC 20554. The full text is also available online at http://apps.fcc.gov/ecfs/. This document does not contain information collection requirements subject to the Paperwork Reduction Act of 1995, Public Law 104-13. The Commission will send a copy of the Report and Order in a report to be sent to Congress and the Government Accountability Office pursuant to the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).

    List of Subjects in 47 CFR Part 73

    Radio, Radio broadcasting.

    Federal Communications Commission. Nazifa Sawez, Assistant Chief, Audio Division, Media Bureau.

    For the reasons discussed in the preamble, the Federal Communications Commission amends 47 CFR part 73 as follows:

    PART 73—RADIO BROADCAST SERVICES 1. The authority citation for part 73 continues to read as follows: Authority:

    47 U.S.C. 154, 303, 334, 336, and 339.

    § 73.202 [Amended]
    2. Section 73.202(b), the Table of FM Allotments under Washington, is amended by adding Raymond, Channel 300A.
    [FR Doc. 2016-15545 Filed 6-30-16; 8:45 am] BILLING CODE 6712-01-P
    DEPARTMENT OF TRANSPORTATION Federal Railroad Administration 49 CFR Part 209 [Docket No. FRA-2004-17530; Notice No. 4] RIN 2130-AC61 Inflation Adjustment of the Ordinary Maximum and Aggravated Maximum Civil Monetary Penalties for a Violation of the Hazardous Material Transportation Laws or Regulations, Orders, Special Permits, and Approvals Issued Under Those Laws AGENCY:

    Federal Railroad Administration (FRA), Department of Transportation (DOT).

    ACTION:

    Interim final rule.

    SUMMARY:

    To comply with the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, FRA is adjusting the minimum penalty, ordinary maximum penalty, and the aggravated maximum penalty that it will apply when assessing a civil monetary penalty for a knowing violation of the Federal hazardous material transportation laws or a regulation, special permit, order, or approval issued under those laws. The aggravated maximum penalty is available only for a violation that results in death, serious illness, or severe injury to any person or substantial destruction of property. In particular, FRA is increasing the minimum penalty for a training violation from $450 to $463; the ordinary maximum civil monetary penalty per violation from $75,000 to $77,114; and the aggravated maximum civil penalty from $175,000 to $179,933.

    DATES:

    This interim final rule is effective August 1, 2016.

    FOR FURTHER INFORMATION CONTACT:

    Roberta Stewart, Trial Attorney, Office of Chief Counsel, FRA, 1200 New Jersey Avenue SE., Mail Stop 10, Washington, DC 20590 (telephone 202-493-6027), [email protected]

    SUPPLEMENTARY INFORMATION:

    On November 2, 2015, President Barack Obama signed the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 Inflation Act). Public Law 114-74, Sec. 701. This amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (Inflation Act) that required each agency to (1) adjust by regulation each maximum civil monetary penalty (CMP), or range of minimum and maximum CMPs, within that agency's jurisdiction by October 23, 1996, and (2) adjust those penalty amounts once every four years thereafter, to reflect inflation. See Public Law 101-410, 104 Stat. 890, 28 U.S.C. 2461, note, as amended by Section 31001(s)(1) of the Debt Collection Improvement Act of 1996, Public Law 104-134, 110 Stat. 1321-373, April 26, 1996. Under the 2015 Inflation Act, agencies must make a catch-up adjustment for CMPs with the new penalty levels published by July 1, 2016, to take effect no later than August 1, 2016. In addition, agencies must make annual inflation adjustments, starting January 15, 2017, based on Office of Management and Budget (OMB) guidance.

    In the 2015 Inflation Act, Congress recognized the important role CMPs play in deterring violations of Federal laws, regulations, and orders and determined that inflation has diminished the impact of these penalties. In the Inflation Act, Congress countered the effect that inflation has had on the CMPs by having the agencies charged with enforcement responsibility administratively adjust the CMPs.

    This interim final rule is published under 49 U.S.C. 5123 and 5124, which provide civil and criminal penalties for violations of the Federal hazardous material transportation laws or a regulation, order, special permit, or approval issued under those laws. The Pipeline and Hazardous Materials Safety Administration (PHMSA) issues the hazardous material transportation regulations. 49 CFR 1.96(b)(1). However, FRA is authorized as the delegate of the Secretary of Transportation to enforce the hazardous material statutes, regulations and orders, including the civil penalty provisions codified primarily at 49 U.S.C. 5123. 49 CFR 1.89(j). In this interim final rule, FRA is amending all references to the minimum and maximum civil penalties in 49 CFR part 209, app. B, to raise the minimum CMP for training violations from $450 to $463; the ordinary maximum CMP per violation from $75,000 to $77,114; and the aggravated maximum CMP from $175,000 to $179,933.

    Description of the Adjustment Calculation

    The 2015 Inflation Act requires FRA to calculate the inflation adjustment by increasing the maximum CMP, or the range of minimum and maximum CMPs, based on the Consumer Price Index for the month of October 2015, not seasonally adjusted. The calculation uses multipliers to adjust the maximum CMP, or the range of minimum and maximum CMPs, based on the year the penalty was established or last adjusted by statute or regulation other than under the Inflation Act. Congress passed the Moving Ahead for Progress in the 21st Century Act in 2012 (MAP-21), which amended the maximum penalty (ordinary maximum) for a knowing violation of a Federal hazardous material safety law, regulation, order, special permit, or approval to $75,000. Public Law 112-141 (July 6, 2012). MAP-21 also set at $175,000 the maximum civil penalty for a person who knowingly violates the Federal hazardous material transportation laws or a regulation, order, special permit, or approval issued under those laws that results in death, serious illness, or severe injury to any person or substantial destruction of property (aggravated maximum), and also added a $450 minimum for a training violation.

    OMB guidance, M-16-06, “Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015,” dated Feb. 24, 2016, states that after applying the multiplier, FRA must round the penalty levels to the nearest dollar.1 The 2015 Inflation Act also specifies that agencies shall not increase penalty levels by more than 150 percent of the corresponding levels in effect on November 2, 2015. If the new amount or range of the increase exceeds 150 percent above the last reported level(s), the new amount or range should be reduced to 150 percent over the last reported level(s). The resulting penalty level(s) in that case would be 250 percent of the last reported level(s).

    1 Available at https://www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf. See also Public Law 114-74, Sec. 701.

    Applying the inflation adjustment calculation, FRA determined the minimum CMP for training violations should be raised from $450 to $463; the ordinary maximum CMP should be raised from $75,000 to $77,114; and the aggravated maximum CMP should be raised from $175,000 to $179,933.

    Calculations To Determine CMP Updates for 2016 1. Minimum CMP of $450 for Training Violations Raised to $463

    As the 2015 Inflation Act requires, FRA evaluated the minimum CMP of $450 for training violations and concluded it should increase to $463, as the next calculations show. The 2012 multiplier of 1.02819 (since the last update not for inflation was in 2012, by MAP-21) times $450 equals $462.68, or $463 rounded to the nearest dollar. The statutory 150 percent ceiling would be $450 (the penalty level in effect on November 2, 2015, including Inflation Act increases), times 2.5, or $1,125. Because $463 is less than the $1,125 ceiling, the 150 percent limit does not apply. The inflation adjusted minimum penalty is $463, and applies to all violations of the hazardous materials statutes, regulations, special permits, approvals, and orders related to training. This new FRA minimum penalty for training violations will apply to violations that occur on or after August 1, 2016.

    2. Ordinary Maximum CMP of $75,000 Raised to $77,114

    As the 2015 Inflation Act requires, FRA evaluated the ordinary maximum CMP and determined it should increase to $77,114, as the following calculations show. The 2012 multiplier of 1.02819 (since the last update not for inflation was in 2012, by MAP-21) times $75,000 equals $77,114.25, or $77,114 rounded to the nearest dollar. The statutory 150 percent ceiling would be $75,000 (the penalty level in effect on November 2, 2015, including Inflation Act increases), times 2.5, or $187,500. Because $77,114 is less than the $ 187,500 ceiling, the 150 percent limit does not apply. The inflation adjusted ordinary maximum penalty is $77,114, and applies to all violations of the hazardous materials transportation statutes, regulations, special permits, approvals, and orders. Therefore, the ordinary maximum CMP should increase from $75,000 to $77,114. This new FRA ordinary maximum penalty will apply to violations that occur on or after August 1, 2016.

    3. Aggravated Maximum CMP of $175,000 Raised to $179,933

    FRA also evaluated the maximum CMP for an aggravated violation and determined it should increase to $179,933, as the following calculations show. The 2012 multiplier of 1.02819 (since the last update not for inflation was in 2012, by MAP-21) times $175,000 equals $179,933.25, or $179,933, rounded to the nearest dollar. The statutory 150 percent ceiling would be $175,000 (the penalty level in effect on November 2, 2015, including Inflation Act increases), times 2.5, or $437,500 Because $179,933 is less than the $437,500 ceiling, the 150 percent limit does not apply. The inflation adjusted aggravated maximum penalty is $179,933, and applies to all violations of the hazardous materials transportation statutes, regulations, special permits, approvals, and orders. Therefore, the aggravated maximum should increase from $175,000 to $179,933. This new FRA aggravated maximum penalty will apply to violations that occur on or after August 1, 2016.

    Public Participation

    FRA is proceeding to an interim final rule without providing a notice of proposed rulemaking or an opportunity for public comment. The adjustments the 2015 Inflation Act requires are ministerial acts over which FRA has no discretion, making public comment unnecessary. As such, notice and comment procedures are “impracticable, unnecessary, or contrary to the public interest” within the meaning of the Administrative Procedure Act (APA), 5 U.S.C. 553(b)(3)(B). FRA is issuing these amendments as an interim final rule applicable to all future hazardous materials transportation civil penalty cases under its authority to cite for violations that occur on or after the effective date of this interim final rule.

    Regulatory Impact A. Executive Orders 12866 and 13563 and DOT Regulatory Policies and Procedures

    This interim final rule has been evaluated consistent with Executive Order 12866 (Regulatory Planning and Review), Executive Order 13563 (Improving Regulation and Regulatory Review), and DOT policies and procedures. It is not considered a significant regulatory action under section 3(f) of Executive Order 12866. The rule is expected to have minimal economic impacts. Additionally, FRA has no discretion to change the amount by which the CMPs are updated due to the clear direction in the 2015 Inflation Act and OMB memorandum M-16-06. Further, this rule is not significant under the Regulatory Policies and Procedures of the Department of Transportation (44 FR 11034; Feb. 26, 1979) because it is limited to ministerial acts on which the agency has no discretion, and the economic impact of the interim final rule is minimal to the extent that preparation of a regulatory evaluation is not warranted.

    B. Regulatory Flexibility Act and Executive Order 13272

    The Regulatory Flexibility Act of 1980 (RFA), Public Law 96-354, as amended, and codified as amended at 5 U.S.C. 601-612, and Executive Order 13272 (Proper Consideration of Small Entities in Agency Rulemaking), require agency review of proposed and final rules to assess their impact on “small entities” for purposes of the RFA. An agency must prepare a regulatory flexibility analysis unless it determines and certifies that a rule is not expected to have a significant economic impact on a substantial number of small entities. FRA does not expect this interim final rule will have a significant economic impact on a substantial number of small entities. Although this interim final rule will apply to railroads, hazardous materials shippers, and others that are considered small entities, there is no economic impact on any person who complies with the Federal hazardous materials laws and the regulations, special permits, approvals, and orders issued under those laws.

    In addition, FRA has determined the RFA does not apply to this rulemaking. The 2015 Inflation Act requires FRA to publish an interim final rule and does not require FRA to complete notice and comment procedures under the APA. The Small Business Administration's A Guide for Government Agencies: How to Comply with the Regulatory Flexibility Act (2003), provides that:

    If, under the APA or any rule of general applicability governing federal grants to state and local governments, the agency is required to publish a general notice of proposed rulemaking (NPRM), the RFA must be considered [citing 5 U.S.C. 604(a)] . . . . If an NPRM is not required, the RFA does not apply.

    Therefore, because the 2015 Inflation Act does not require an NPRM for this rulemaking, the RFA does not apply.

    C. Federalism

    This interim final rule will not have a substantial effect on the States, on the relationship between the national government and the States, or the distribution of power and responsibilities among the various levels of government. Thus, consistent with Executive Order 13132 (Federalism), preparation of a Federalism assessment is not warranted.

    D. Paperwork Reduction Act

    There are no new information collection requirements in this interim final rule to submit for OMB review under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

    E. Unfunded Mandates Reform Act of 1995

    This interim final rule will not result in the expenditure, in the aggregate, of $156,000,000 or more in any one year by State, local, or Indian Tribal governments, or the private sector. Thus, consistent with Section 202 of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4, 2 U.S.C. 1532), preparation of a written statement detailing the effect of such an expenditure is not warranted.

    F. Environmental Impact

    FRA has evaluated this interim final rule under the National Environmental Policy Act (NEPA; 42 U.S.C. 4321 et seq.), other environmental statutes, related regulatory requirements, and its “Procedures for Considering Environmental Impacts” (FRA's Procedures) (64 FR 28545; May 26, 1999). FRA has determined that this interim final rule is categorically excluded from detailed environmental review pursuant to section 4(c)(20) of FRA's NEPA Procedures, “Promulgation of railroad safety rules and policy statements that do not result in significantly increased emissions of air or water pollutants or noise or increased traffic congestion in any mode of transportation.” See 64 FR 28547 (May 26, 1999). Categorical exclusions (CEs) are actions identified in an agency's NEPA implementing procedures that do not normally have a significant impact on the environment and therefore do not require either an environmental assessment (EA) or environmental impact statement (EIS). See 40 CFR 1508.4.

    In analyzing the applicability of a CE, the agency must also consider whether extraordinary circumstances are present that would warrant a more detailed environmental review through the preparation of an EA or EIS. Id. Under section 4(c) and (e) of FRA's Procedures, FRA has further concluded that no extraordinary circumstances exist with respect to this regulation that might trigger the need for a more detailed environmental review. The purpose of this rulemaking is to comply with the Inflation Act, as amended by the 2015 Inflation Act. Specifically, FRA is adjusting the minimum, maximum, and aggravated maximum penalty that it will apply when assessing a civil penalty for a violation of a Federal hazardous materials law, regulation, special permit, approval, or order. FRA does not anticipate any environmental impacts from this requirement and finds there are no extraordinary circumstances present in connection with this interim final rule.

    G. Executive Order 12898 (Environmental Justice)

    Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, and DOT Order 5610.2(a) (91 FR 27534; May 10, 2012) require DOT agencies to achieve environmental justice as part of their mission by identifying and addressing, as appropriate, disproportionately high and adverse human health or environmental effects, including interrelated social and economic effects, of their programs, policies, and activities on minority populations and low-income populations. The DOT Order instructs DOT agencies to address compliance with Executive Order 12898 and requirements within the DOT Order in rulemaking activities, as appropriate. FRA has evaluated this interim final rule under Executive Order 12898 and the DOT Order and has determined that it would not cause disproportionately high and adverse human health and environmental effects on minority populations or low-income populations.

    H. Executive Order 13175 (Tribal Consultation)

    FRA has evaluated this interim final rule under the principles and criteria contained in Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, dated November 6, 2000. The interim final rule would not have a substantial direct effect on one or more Indian tribes, would not impose substantial direct compliance costs on Indian tribal governments, and would not preempt tribal laws. Therefore, the funding and consultation requirements of Executive Order 13175 do not apply, and a tribal summary impact statement is not required.

    List of Subjects in 49 CFR Part 209

    Administrative practice and procedure, Hazardous materials transportation, Penalties, Railroad safety, Reporting and recordkeeping requirements.

    The Interim Final Rule

    In consideration of the foregoing, part 209 of subtitle B, chapter II of title 49 of the Code of Federal Regulations is amended as follows:

    PART 209—[AMENDED] 1. The authority citation for part 209 continues to read as follows: Authority:

    49 U.S.C. 5123, 5124, 20103, 20107, 20111, 20112, 20114; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    2. Revise § 209.103(a) and (c) to read as follows:
    § 209.103 Minimum and maximum penalties.

    (a) A person who knowingly violates a requirement of the Federal hazardous materials transportation laws, an order issued thereunder, subchapter A or C of chapter I, subtitle B, of this title, or a special permit or approval issued under subchapter A or C of chapter I, subtitle B, of this title is liable for a civil penalty of not more than $77,114 for each violation, except that—

    (1) The maximum civil penalty for a violation is $179,933 if the violation results in death, serious illness, or severe injury to any person, or substantial destruction of property and

    (2) A minimum $463 civil penalty applies to a violation related to training.

    (c) The maximum and minimum civil penalties described in paragraph (a) above apply to violations occurring on or after August 1, 2016.

    3. Revise the last sentence of § 209.105(c) to read as follows:
    § 209.105 Notice of probable violation.

    (c) * * * In an amended notice, FRA may change the civil penalty amount proposed to be assessed up to and including the maximum penalty amount of $77,114 for each violation, except that if the violation results in death, serious illness or severe injury to any person, or substantial destruction of property, FRA may change the penalty amount proposed to be assessed up to and including the maximum penalty amount of $179,933.

    Appendix B to Part 209—[Amended]
    4. Amend appendix B to part 209 as follows: a. In the introductory text, revise the second sentence of the first paragraph, the last sentence of the second paragraph, and the next to last sentence of the third paragraph; b. In the table “CIVIL PENALTY ASSESSMENT GUIDELINES,” below the heading “PART 173—SHIPPERS—GENERAL REQUIREMENTS FOR SHIPMENTS AND PACKAGES,” revise the entry for “§§ 173.24(b)(1) and 173.24(b)(2) and 173.24(f)(1) and 173.24(f)(1)(ii)”, and revise the entry for “§ 173.24(c)”; and c. Revise footnote 2.

    The revisions read as follows:

    Appendix B to Part 209—Federal Railroad Administration Guidelines for Initial Hazardous Materials Assessments

    * * * The guideline penalty amounts reflect the best judgment of the FRA Office of Railroad Safety (RRS) and of the Safety Law Division of the Office of Chief Counsel (RCC) on the relative severity of the various violations routinely encountered by FRA inspectors on a scale of amounts up to the maximum $77,114 penalty, except the maximum civil penalty is $179,933 if the violation results in death, serious illness or severe injury to any person, or substantial destruction of property, and a minimum $463 penalty applies to a violation related to training. * * * 

    * * * When a violation of the Federal hazardous material transportation law, an order issued thereunder, the Hazardous Materials Regulations or a special permit, approval, or order issued under those regulations results in death, serious illness or severe injury to any person, or substantial destruction of property, a maximum penalty of at least $77,114 and up to and including $179,933 shall always be assessed initially.

    * * * In fact, FRA reserves the express authority to amend the NOPV to seek a penalty of up to $77,114 for each violation, and up to $179,933 for any violation resulting in death, serious illness or severe injury to any person, or substantial destruction of property, at any time prior to issuance of an order. * * * 

    Civil Penalty Assessment Guidlenes PART 173—SHIPPERS—GENERAL REQUIREMENTS FOR SHIPMENTS AND PACKAGES 49 CFR Section Description Guideline amount 2 *         *         *         *         *         *         * 173.24(b)(1) and 173.24(b)(2) and 173.24(f)(1) and 173.24(f)(1)(ii) Securing closures: These subsections are the general “no leak” standard for all packagings. Sec. 173.24(b) deals primarily with packaging as a whole, while § 173.24(f) focuses on closures. Use § 173.31(d) for tank cars, when possible. Cite the sections accordingly, using both the leak/non-leak criteria and the package size considerations to reach the appropriate penalty. Any actual leak will aggravate the guideline by, typically, 50%; a leak with contact with a human being will aggravate by at least 100%, up to the maximum of $77,114, and up to $179,933 if the violation results in death, serious illness or injury or substantial destruction of property. For intermodal (IM) portable tanks and other tanks of that size range, use the tank car penalty amounts, as stated in § 173.31. —Small bottle or box. 1,000 —55-gallon drum. 2,500 —Larger container, e.g., IBC; not portable tank or tank car. 5,000 —IM portable tank, cite § 173.24(f) and use the penalty amounts for tank cars: Residue, generally, § 173.29(a) and, loaded, § 173.31(d). —Residue adhering to outside of package (i.e., portable tanks, tank cars, etc.). 5,000 173.24(c) Use of package not meeting specifications, including required stencils and markings. The most specific section for the package involved should be cited (see below). The penalty guideline should be adjusted for the size of the container. Any actual leak will aggravate the guideline by, typically, 50%; a leak with contact with a human being will aggravate by at least 100%, up to the maximum of $77,114, and up to $179,933 if the violation results in death, serious illness or injury or substantial destruction of property. —Small bottle or box. 1,000 —55-gallon drum. 2,500 —Larger container, e.g., IBC; not portable tank or tank car, but this section is applicable to a hopper car. 5,000 For more specific sections: Tank cars-§ 173.31(a), portable tanks-§ 173.32, and IM portable tanks-§§ 173.32a, 173.32b, and 173.32c. * * * * * 2 A person who knowingly violates the hazardous material transportation law or a regulation, order, special permit, or approval issued thereunder, is subject to a civil penalty of up to $77,114 for each violation, except that the maximum civil penalty for a violation is $179,933 if the violation results in death, serious illness, or severe injury to any person or substantial destruction of property; and a minimum $463 civil penalty applies to a violation related to training. Each day that the violation continues is a separate offense. 49 U.S.C. 5123; 28 U.S.C. 2461, note. Corey Hill, Executive Director.
    [FR Doc. 2016-15642 Filed 6-30-16; 8:45 am] BILLING CODE 4910-06-P
    DEPARTMENT OF TRANSPORTATION Federal Railroad Administration 49 CFR Parts 209, 213, 214, 215, 216, 217, 218, 219, 220, 221, 222, 223, 224, 225, 227, 228, 229, 230, 231, 232, 233, 234, 235, 236, 237, 238, 239, 240, 241, 242, 243, 244, and 272 [Docket No. FRA-2016-0021; Notice No. 1] RIN 2130-AC59 Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act for a Violation of a Federal Railroad Safety Law or Federal Railroad Administration Safety Regulation or Order AGENCY:

    Federal Railroad Administration (FRA), Department of Transportation (DOT).

    ACTION:

    Interim final rule.

    SUMMARY:

    To comply with the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, FRA is adjusting the minimum, maximum, and aggravated maximum penalties that it will apply when assessing a civil penalty for a violation of a railroad safety statute, regulation, or order under its authority. In particular, FRA is increasing the minimum civil penalty per violation from $650 to $839, the ordinary maximum civil penalty per violation from $25,000 to $27,455, and the aggravated maximum civil penalty (i.e., the maximum civil penalty per violation where a grossly negligent violation or a pattern of repeated violations has created an imminent hazard of death or injury or has caused death or injury) from $105,000 to $109,819.

    DATES:

    This interim final rule is effective August 1, 2016.

    FOR FURTHER INFORMATION CONTACT:

    Veronica Chittim, Trial Attorney, Office of Chief Counsel, FRA, 1200 New Jersey Avenue SE., Mail Stop 10, Washington, DC 20590 (telephone 202-493-0273), [email protected]

    SUPPLEMENTARY INFORMATION:

    On November 2, 2015, President Barack Obama signed the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 Inflation Act). Public Law 114-74, Sec. 701. This amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (Inflation Act) that required each agency to (1) adjust by regulation each maximum civil monetary penalty (CMP), or range of minimum and maximum CMPs, within that agency's jurisdiction by October 23, 1996, and (2) adjust those penalty amounts once every four years thereafter, to reflect inflation. See Public Law 101-410, 104 Stat. 890, 28 U.S.C. 2461, note, as amended by Section 31001(s)(1) of the Debt Collection Improvement Act of 1996, Public Law 104-134, 110 Stat. 1321-373, April 26, 1996. Under the 2015 Inflation Act, agencies must make a catch-up adjustment for CMPs with the new penalty levels published by July 1, 2016, to take effect no later than August 1, 2016. In addition, agencies must make annual inflation adjustments, starting January 15, 2017, based on Office of Management and Budget (OMB) guidance.

    In the 2015 Inflation Act, Congress recognized the important role CMPs play in deterring violations of Federal laws, regulations, and orders and determined that inflation has diminished the impact of these penalties. In the Inflation Act, Congress countered the effect that inflation has had on the CMPs by having the agencies charged with enforcement responsibility administratively adjust the CMPs.

    FRA is authorized as the delegate of the Secretary of Transportation to enforce the Federal railroad safety statutes, regulations, and orders, including the civil penalty provisions codified primarily at 49 U.S.C. 213. See 49 U.S.C. 103 and 49 CFR 1.89; 49 U.S.C. 201-213. FRA currently has safety regulations in 33 parts of the CFR that contain the agency's authority to impose civil penalties if a person violates any requirement in the pertinent portion of a statute or the CFR. In this interim final rule, FRA is amending each of the separate regulatory provisions and the corresponding footnotes in each Schedule of Civil Penalties appended to those regulations to raise the minimum CMP to $839, ordinary maximum CMP to $27,455, and aggravated maximum CMP to $109,819. Where applicable, FRA is amending the corresponding appendices to those regulatory provisions which outline FRA enforcement policy. See 49 CFR part 209, app. A; 49 CFR part 228, app. A.

    Description of the Adjustment Calculation

    The 2015 Inflation Act requires FRA to calculate the inflation adjustment by increasing the maximum CMP, or the range of minimum and maximum CMPs, based on the Consumer Price Index for the month of October 2015, not seasonally adjusted. The calculation uses multipliers to adjust the maximum CMP, or the range of minimum and maximum CMPs, based on the year the penalty was established or last adjusted by statute or regulation other than under the Inflation Act. FRA's minimum CMP ($500) was last adjusted by statute in 1992. See Rail Safety Enforcement and Review Act, Public Law 102-365, 106 Stat. 972 (Sept. 3, 1992), Sec. 4(a). The ordinary maximum CMP ($25,000) and aggravated maximum CMP ($100,000) were last adjusted by statute in 2008. See Rail Safety Improvement Act of 2008 (RSIA of 2008), Public Law 110-342, Div. A, 122 Stat. 4848, (Oct. 16, 2008), Sec. 302; 73 FR 79698 (Dec. 30, 2008). OMB guidance, M-16-06, “Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015,” dated Feb. 24, 2016, states that after applying the multiplier, FRA must round the penalty levels to the nearest dollar.1 The 2015 Inflation Act also specifies that agencies shall not increase penalty levels by more than 150 percent of the corresponding levels in effect on November 2, 2015. The 150 percent limit applies to the amount of the increase. If the new amount or range of the increase exceeds 150 percent above the last reported level(s), the new amount or range should be reduced to 150 percent over the last reported level(s). The resulting penalty level(s) in that case would be 250 percent of the last reported level(s).

    1 Available at https://www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf. See also Public Law 114-74, Sec. 701.

    Applying the inflation adjustment calculation, FRA determined the minimum CMP should be increased to $839; the ordinary maximum CMP should be increased to $27,455; and the aggravated maximum CMP should be increased to $109,819, as the following calculations show.

    Calculations To Determine CMP Updates for 2016 1. Minimum CMP of $650 Raised to $839

    As the 2015 Inflation Act requires, FRA evaluated the minimum CMP and concluded it should increase to $839, as the next calculations show. The 1992 multiplier of 1.67728 (since the last update not for inflation was in 1992) times $500 equals $838.64, or $839 rounded to the nearest dollar. The statutory 150 percent ceiling would be $650 (the penalty level in effect on November 2, 2015, including Inflation Act increases), times 2.5, or $1,625. Because $839 is less than the $1,625 ceiling, the 150 percent limit does not apply. The inflation adjusted minimum penalty is $839, and applies to all the rail safety statutes, regulations, and orders. See appendix to this interim final rule. Thus, FRA's minimum CMP increases from $650 to $839. This new FRA minimum penalty will apply to violations that occur on or after August 1, 2016.

    2. Ordinary Maximum CMP of $25,000 Raised to $27,455

    As required by the 2015 Inflation Act, FRA evaluated the ordinary maximum CMP and determined it should increase to $27,455, as the following calculations show. The 2008 multiplier of 1.09819 (since the last update not for inflation was in 2008) times $25,000 equals $27,454.75, or $27,455 rounded to the nearest dollar. The statutory 150 percent ceiling would be $25,000 (the penalty level in effect on November 2, 2015, including Inflation Act increases), times 2.5, or $62,500. Because $27,455 is less than the $62,500 ceiling, the 150 percent limit does not apply. The inflation adjusted ordinary maximum penalty is $27,455, and applies to all the rail safety statutes, regulations, and orders. See appendix to this interim final rule. Therefore, the ordinary maximum CMP increases from $25,000 to $27,455. This new FRA ordinary maximum penalty will apply to violations that occur on or after August 1, 2016.

    3. Aggravated Maximum CMP of $105,000 Raised to $109,819

    FRA also evaluated the CMP for an aggravated violation and determined it should increase to $109,819, as the following calculations show. The 2008 multiplier of 1.09819 (since the last update not for inflation was in 2008) times $100,000 equals $109,819. The statutory 150 percent ceiling would be $105,000 (the penalty level in effect on November 2, 2015, including Inflation Act increases), times 2.5, or $262,500. Because $109,819 is less than the $262,500 ceiling, the 150 percent limit does not apply. The inflation adjusted aggravated maximum penalty is $109,819, and applies to all the rail safety statutes, regulations, and orders. See appendix to this interim final rule. Therefore, the aggravated maximum increases from $105,000 to $109,819. This new FRA aggravated maximum penalty will apply to violations that occur on or after August 1, 2016.

    Public Participation

    FRA is proceeding to an interim final rule without providing a notice of proposed rulemaking or an opportunity for public comment. The adjustments the 2015 Inflation Act requires are ministerial acts over which FRA has no discretion, making public comment unnecessary. As such, notice and comment procedures are “impracticable, unnecessary, or contrary to the public interest” within the meaning of the Administrative Procedure Act (APA), 5 U.S.C. 553(b)(3)(B). FRA is issuing these amendments as an interim final rule applicable to all future rail safety civil penalty cases under its authority to cite for violations that occur on or after the effective date of this interim final rule.

    Regulatory Impact A. Executive Orders 12866 and 13563 and DOT Regulatory Policies and Procedures

    This interim final rule has been evaluated consistent with Executive Order 12866 (Regulatory Planning and Review), Executive Order 13563 (Improving Regulation and Regulatory Review), and DOT policies and procedures. It is not considered a significant regulatory action under section 3(f) of Executive Order 12866. The rule is expected to have minimal economic impacts. Additionally, FRA has no discretion to change the amount by which the CMPs are updated due to the clear direction in the 2015 Inflation Act and OMB memorandum M-16-06. Further, this rule is not significant under the Regulatory Policies and Procedures of the Department of Transportation (44 FR 11034; Feb. 26, 1979) because it is limited to ministerial acts on which the agency has no discretion, and the economic impact of the interim final rule is minimal to the extent that preparation of a regulatory evaluation is not warranted.

    B. Regulatory Flexibility Act and Executive Order 13272

    The Regulatory Flexibility Act of 1980 (RFA), Public Law 96-354, as amended, and codified as amended at 5 U.S.C. 601-612, and Executive Order 13272 (Proper Consideration of Small Entities in Agency Rulemaking), require agency review of proposed and final rules to assess their impact on “small entities” for purposes of the RFA. An agency must prepare a regulatory flexibility analysis unless it determines and certifies that a rule is not expected to have a significant economic impact on a substantial number of small entities. FRA does not expect this interim final rule will have a significant economic impact on a substantial number of small entities. Although this interim final rule will apply to railroads and others that are considered small entities, there is no economic impact on any person who complies with the Federal railroad safety laws and the regulations and orders issued under those laws.

    In addition, FRA has determined the RFA does not apply to this rulemaking. The 2015 Inflation Act requires FRA to publish an interim final rule and does not require FRA to complete notice and comment procedures under the APA. The Small Business Administration's A Guide for Government Agencies: How To Comply With the Regulatory Flexibility Act (2003), provides that:

    If, under the APA or any rule of general applicability governing federal grants to state and local governments, the agency is required to publish a general notice of proposed rulemaking (NPRM), the RFA must be considered [citing 5 U.S.C. 604(a)] . . . . If an NPRM is not required, the RFA does not apply.

    Therefore, because the 2015 Inflation Act does not require an NPRM for this rulemaking, the RFA does not apply.

    C. Federalism

    This interim final rule will not have a substantial effect on the States, on the relationship between the national government and the States, or the distribution of power and responsibilities among the various levels of government. Thus, consistent with Executive Order 13132 (Federalism), preparation of a Federalism assessment is not warranted.

    D. Paperwork Reduction Act

    There are no new information collection requirements in this interim final rule to submit for OMB review under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

    E. Unfunded Mandates Reform Act of 1995

    This final rule will not result in the expenditure, in the aggregate, of $156,000,000 or more in any one year by State, local, or Indian Tribal governments, or the private sector. Thus, consistent with Section 202 of the Unfunded Mandates Reform Act of 1995 (Pub.L. 104-4, 2 U.S.C. 1532), preparation of a written statement detailing the effect of such an expenditure is not warranted.

    F. Environmental Impact

    FRA has evaluated this interim final rule under the National Environmental Policy Act (NEPA; 42 U.S.C. 4321 et seq.), other environmental statutes, related regulatory requirements, and its “Procedures for Considering Environmental Impacts” (FRA's Procedures) (64 FR 28545; May 26, 1999). FRA has determined that this interim final rule is categorically excluded from detailed environmental review pursuant to section 4(c)(20) of FRA's NEPA Procedures, “Promulgation of railroad safety rules and policy statements that do not result in significantly increased emissions of air or water pollutants or noise or increased traffic congestion in any mode of transportation.” See 64 FR 28547 (May 26, 1999). Categorical exclusions (CEs) are actions identified in an agency's NEPA implementing procedures that do not normally have a significant impact on the environment and therefore do not require either an environmental assessment (EA) or environmental impact statement (EIS). See 40 CFR 1508.4.

    In analyzing the applicability of a CE, the agency must also consider whether extraordinary circumstances are present that would warrant a more detailed environmental review through the preparation of an EA or EIS. See id. Under section 4(c) and (e) of FRA's Procedures, FRA has further concluded that no extraordinary circumstances exist with respect to this regulation that might trigger the need for a more detailed environmental review. The purpose of this rulemaking is to comply with the Inflation Act, as amended by the 2015 Inflation Act. Specifically, FRA is adjusting the minimum, maximum, and aggravated maximum penalty that it will apply when assessing a civil penalty for a violation of a railroad safety statute, regulation, or order under its authority. FRA does not anticipate any environmental impacts from this requirement and finds there are no extraordinary circumstances present in connection with this interim final rule.

    G. Executive Order 12898 (Environmental Justice)

    Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, and DOT Order 5610.2(a) (91 FR 27534; May 10, 2012) require DOT agencies to achieve environmental justice as part of their mission by identifying and addressing, as appropriate, disproportionately high and adverse human health or environmental effects, including interrelated social and economic effects, of their programs, policies, and activities on minority populations and low-income populations. The DOT Order instructs DOT agencies to address compliance with Executive Order 12898 and requirements within the DOT Order in rulemaking activities, as appropriate. FRA has evaluated this interim final rule under Executive Order 12898 and the DOT Order and has determined that it would not cause disproportionately high and adverse human health and environmental effects on minority populations or low-income populations.

    H. Executive Order 13175 (Tribal Consultation)

    FRA has evaluated this interim final rule under the principles and criteria contained in Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, dated November 6, 2000. The interim final rule would not have a substantial direct effect on one or more Indian tribes, would not impose substantial direct compliance costs on Indian tribal governments, and would not preempt tribal laws. Therefore, the funding and consultation requirements of Executive Order 13175 do not apply, and a tribal summary impact statement is not required.

    List of Subjects 49 CFR Part 209

    Administrative practice and procedure, Hazardous materials transportation, Penalties, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 213

    Bridges, Penalties, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 214

    Bridges, Occupational safety and health, Penalties, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 215

    Freight, Penalties, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 216

    Penalties, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 217

    Penalties, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 218

    Occupational safety and health, Penalties, Railroad employees, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 219

    Alcohol abuse, Drug abuse, Drug testing, Penalties, Railroad safety, Reporting and recordkeeping requirements, Safety, Transportation.

    49 CFR Part 220

    Penalties, Radio, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 221

    Penalties, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 222

    Administrative practice and procedure, Penalties, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 223

    Glazing standards, Penalties, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 224

    Penalties, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 225

    Investigations, Penalties, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 227

    Noise control, Occupational safety and health, Penalties, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 228

    Penalties, Railroad employees, Reporting and recordkeeping requirements.

    49 CFR Part 229

    Penalties, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 230

    Penalties, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 231

    Penalties, Railroad safety.

    49 CFR Part 232

    Penalties, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 233

    Penalties, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 234

    Highway safety, Penalties, Railroad safety, Reporting and recordkeeping requirements, State and local governments.

    49 CFR Part 235

    Administrative practice and procedure, Penalties, Railroad safety, Railroad signals, Reporting and recordkeeping requirements.

    49 CFR Part 236

    Penalties, Positive train control, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 237

    Bridges, Penalties, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 238

    Fire prevention, Penalties, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 239

    Penalties, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 240

    Administrative practice and procedure, Penalties, Railroad employees, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 241

    Communications, Penalties, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 242

    Administrative practice and procedure, Penalties, Railroad employees, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 243

    Administrative practice and procedure, Penalties, Railroad employees, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 244

    Administrative practice and procedure, Penalties, Railroad safety, Reporting and recordkeeping requirements.

    49 CFR Part 272

    Penalties, Railroad employees, Railroad safety, Railroads, Safety, Transportation.

    The Interim Final Rule

    In consideration of the foregoing, parts 209, 213, 214, 215, 216, 217, 218, 219, 220, 221, 222, 223, 224, 225, 227, 228, 229, 230, 231, 232, 233, 234, 235, 236, 237, 238, 239, 240, 241, 242, 243, 244, and 272 of subtitle B, chapter II of title 49 of the Code of Federal Regulations are amended as follows:

    PART 209—[AMENDED] 1. The authority citation for part 209 continues to read as follows: Authority:

    49 U.S.C. 5123, 5124, 20103, 20107, 20111, 20112, 20114; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 209.409 [Amended]
    2. Amend § 209.409 as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”. b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    3. In appendix A to part 209, amend the section on “Penalty Schedules: Assessment of Maximum Penalties” by: a. Redesignating the sixth through ninth paragraphs as the seventh through tenth paragraphs; b. Adding a new sixth paragraph; c. Revising the third sentence of the redesignated seventh paragraph; d. Revising the first sentence of the redesignated tenth paragraph; and e. Removing the second sentence of the redesignated tenth paragraph.

    The revisions and additions read as follows:

    Appendix A to Part 209—Statement of Agency Policy Concerning Enforcement of the Federal Railroad Safety Laws Penalty Schedules; Assessment of Maximum Penalties

    On November 2, 2015, President Barack Obama signed the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 Inflation Act). Public Law 114-74, Sec. 701. Under the 2015 Inflation Act, agencies must make a catch-up adjustment for civil monetary penalties with the new penalty levels published by July 1, 2016, to take effect no later than August 1, 2016. Moving forward, agencies must make annual inflationary adjustments, starting January 15, 2017, based on Office of Management and Budget guidance. Under the 2015 Inflation Act, effective August 1, 2016, the minimum civil monetary penalty was raised from $650 to $839, the ordinary maximum civil monetary penalty was raised from $25,000 to $27,455, and the aggravated maximum civil monetary penalty was raised from $105,000 to $109,819. * * * For each regulation or order, the schedule shows two amounts within the $839 to $27,455 range in separate columns, the first for ordinary violations, the second for willful violations (whether committed by railroads or individuals). * * *

    Accordingly, under each of the schedules (ordinarily in a footnote), and regardless of the fact that a lesser amount might be shown in both columns of the schedule, FRA reserves the right to assess the statutory maximum penalty of up to $109,819 per violation where a pattern of repeated violations or a grossly negligent violation has created an imminent hazard of death or injury or has caused death or injury. * * *

    Appendix B to Part 209—[Amended] 4. In appendix B to part 209, amend footnote 1 as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    PART 213—[AMENDED] 5. The authority citation for part 213 continues to read as follows: Authority:

    49 U.S.C. 20102-20114 and 20142; Sec. 403, Div. A, Public Law 110-432, 122 Stat. 4885; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 213.15 [Amended]
    6. In § 213.15, amend paragraph (a) as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    Appendix B to Part 213—[Amended] 7. In appendix B to part 213, amend footnote 1 by removing the numerical amount “$105,000” and adding in its place the numerical amount “$109,819”. PART 214—[AMENDED] 8. The authority citation for part 214 continues to read as follows: Authority:

    49 U.S.C. 20103, 20107, 21301, 31304; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 214.5 [Amended]
    9. Amend § 214.5 as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    Appendix A to Part 214—[Amended] 10. In appendix A to part 214, amend footnote 1 by removing the numerical amount “$105,000” and adding in its place the numerical amount “$109,819”. PART 215—[AMENDED] 11. The authority citation for part 215 is revised to read as follows: Authority:

    49 U.S.C. 20103, 20107; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 215.7 [Amended]
    12. Amend § 215.7 as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    Appendix B to Part 215—[Amended] 13. In appendix B to part 215, amend footnote 1 as follows: a. Remove the numerical amount “$16,000” and add in its place the numerical amount “$27,455”; and b. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”. PART 216—[AMENDED] 14. The authority citation for part 216 is revised to read as follows: Authority:

    49 U.S.C. 20102-20104, 20107, 20111, 20133, 20701-20702, 21301-21302, 21304; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 216.7 [Amended]
    15. Amend § 216.7 as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    PART 217—[AMENDED] 16. The authority citation for part 217 is revised to read as follows: Authority:

    49 U.S.C. 20103, 20107; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 217.5 [Amended]
    17. Amend § 217.5 as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    Appendix A to Part 217—[Amended] 18. In appendix A to part 217, amend footnote 1 by removing the numerical amount “$105,000” and adding in its place the numerical amount “$109,819”. PART 218—[AMENDED] 19. The authority citation for part 218 is revised to read as follows: Authority:

    49 U.S.C. 20103, 20107; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 218.9 [Amended]
    20. Amend § 218.9 as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    Appendix A to Part 218—[Amended] 21. In appendix A to part 218, amend footnote 1 by removing the numerical amount “$105,000” and adding in its place the numerical amount “$109,819”. PART 219—[AMENDED] 22. The authority citation for part 219 continues to read as follows: Authority:

    49 U.S.C. 20102-20103, 20107, 20140, 21301, 21304, 21311; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 219.9 [Amended]
    23. In § 219.9, amend paragraph (a) as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    Appendix A to Part 219—[Amended] 24. In appendix A to part 219, amend footnote 1 by removing the numerical amount “$105,000” and adding in its place the numerical amount “$109,819”. PART 220—[AMENDED] 25. The authority citation for part 220 is revised to read as follows: Authority:

    49 U.S.C. 20102-20103, 20103, note, 20107, 21301-21302, 20701-20703, 21304, 21311; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 220.7 [Amended]
    26. Amend § 220.7 as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    Appendix C to Part 220—[Amended] 27. In appendix C to part 220, amend footnote 1 by removing the numerical amount “$105,000” and adding in its place the numerical amount “$109,819”. PART 221—[AMENDED] 28. The authority citation for part 221 is revised to read as follows: Authority:

    49 U.S.C. 20103, 20107; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 221.7 [Amended]
    29. Amend § 221.7 as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    Appendix C to Part 221—[Amended] 30. In appendix C to part 221, amend footnote 1 by removing the numerical amount “$105,000” and adding in its place the numerical amount “$109,819”. PART 222—[AMENDED] 31. The authority citation for part 222 is revised to read as follows: Authority:

    49 U.S.C. 20103, 20107, 20153, 21301, 21304; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 222.11 [Amended]
    32. Amend § 222.11 as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    Appendix H to Part 222—[Amended] 33. In appendix H to part 222, amend footnote 1 by removing the numerical amount “$105,000” and adding in its place the numerical amount “$109,819” PART 223—[AMENDED] 34. The authority citation for part 223 continues to read as follows: Authority:

    49 U.S.C. 20102-20103, 20133, 20701-20702, 21301-21302, 21304; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 223.7 [Amended]
    35. Amend § 223.7 as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    Appendix B to Part 223—[Amended] 36. In appendix B to part 223, amend footnote 1 by removing the numerical amount “$105,000” and adding in its place the numerical amount “$109,819”. PART 224—[AMENDED] 37. The authority citation for part 224 is revised to read as follows: Authority:

    49 U.S.C. 20103, 20107, 20148 and 21301; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 224.11 [Amended]
    38. In § 224.11, amend paragraph (a) as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    Appendix A to Part 224—[Amended] 39. In appendix A to part 224, amend footnote 1 by removing the numerical amount “$105,000” and adding in its place the numerical amount “$109,819”. PART 225—[AMENDED] 40. The authority citation for part 225 continues to read as follows: Authority:

    49 U.S.C. 103, 322(a), 20103, 20107, 20901-20902, 21301, 21302, 21311; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 225.29 [Amended]
    41. Amend § 225.29 as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    Appendix A to Part 225—[Amended] 42. In appendix A to part 225, amend footnote 1 by removing the numerical amount “$105,000” and adding in its place the numerical amount “$109,819”. PART 227—[AMENDED] 43. The authority citation for part 227 is revised to read as follows: Authority:

    49 U.S.C. 20103, 20103, note, 20701-20702; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 227.9 [Amended]
    44. In § 227.9, amend paragraph (a) as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    Appendix G to Part 227—[Amended] 45. In appendix G to part 227, amend footnote 1 by removing the numerical amount “$105,000” and adding in its place the numerical amount “$109,819”. PART 228—[AMENDED] 46. The authority citation for part 228 is revised to read as follows: Authority:

    49 U.S.C. 103, 20103, 20107, 21101-21109; Sec. 108, Div. A, Public Law 110-432, 122 Stat. 4860-4866, 4893-4894; 49 U.S.C. 21301, 21303, 21304, 21311; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 228.6 [Amended]
    47. In § 228.6, amend paragraph (a) as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    Appendix A to Part 228—[Amended] 48. In appendix A to part 228, below the heading “GENERAL PROVISIONS,” amend the “Penalty” paragraph by adding two sentences to read as follows: Appendix A to Part 228—Requirements of the Hours of Service Act: Statement of Agency Policy and Interpretation General Provisions

    Penalty. * * * Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, effective August 1, 2016, the minimum penalty was raised from $650 to $839, the ordinary maximum penalty was raised from $25,000 to $27,455, and the aggravated maximum penalty was raised from $105,000 to $109,819. See Public Law 114-74, Sec. 701, November 2, 2015.

    Appendix B to Part 228—[Amended] 49. In appendix B to part 228, amend footnote 1 by removing the numerical amount “$105,000” and adding in its place the numerical amount “$109,819”. PART 229—[AMENDED] 50. The authority citation for part 229 continues to read as follows: Authority:

    49 U.S.C. 103, 322(a), 20103, 20107, 20901-02, 21301, 21301, 21302, 21311; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 229.7 [Amended]
    51. In § 229.7, amend paragraph (b) as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    Appendix B to Part 229—[Amended] 52. In appendix B to part 229, amend footnote 1 as follows: a. Remove the numerical amount “$16,000” and add in its place the numerical amount “$27,455”; and b. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819” PART 230—[AMENDED] 53. The authority citation for part 230 is revised to read as follows: Authority:

    49 U.S.C. 20103, 20107, 20702; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 230.4 [Amended]
    54. In § 230.4, amend paragraph (a) as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    PART 231—[AMENDED] 55. The authority citation for part 231 is revised to read as follows: Authority:

    49 U.S.C. 20102-20103, 20107, 20131, 20301-20303, 21301-21302, 21304; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 231.0 [Amended]
    56. In § 231.0, amend paragraph (f) as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    Appendix A to Part 231—[Amended] 57. In appendix A to part 231, amend footnote 1 by removing the numerical amount “$105,000” and adding in its place the numerical amount “$109,819”. PART 232—[AMENDED] 58. The authority citation for part 232 continues to read as follows: Authority:

    49 U.S.C. 20102-20103, 20107, 20133, 20141, 20301-20303, 20306, 21301-21302, 21304; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 232.11 [Amended]
    59. In § 232.11, amend paragraph (a) as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    Appendix A to Part 232—[Amended] 60. In appendix A to part 232, amend footnote 1 as follows: a. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and b. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”. PART 233—[AMENDED] 61. The authority citation for part 233 continues to read as follows: Authority:

    49 U.S.C. 504, 522, 20103, 20107, 20501-20505, 21301, 21302, 21311; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 233.11 [Amended]
    62. Amend § 233.11 as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”.
    Appendix A to Part 233—[Amended] 63. In appendix A to part 233, amend footnote 1 by removing the numerical amount “$105,000” and adding in its place the numerical amount “$109,819”. PART 234—[AMENDED] 64. The authority citation for part 234 continues to read as follows: Authority:

    49 U.S.C. 20103, 20107, 20152, 20160, 21301, 21304, 21311, 22501 note; Pub. L. 110-432, Div. A., Sec. 202, 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 234.6 [Amended]
    65. In § 234.6, amend paragraph (a) as follows: a. Remove the numerical amount “$650” and add in its place the numerical amount “$839”; b. Remove the numerical amount “$25,000” and add in its place the numerical amount “$27,455”; and c. Remove the numerical amount “$105,000” and add in its place the numerical amount “$109,819”. Appendix A to Part 234—[Amended] 66. In appendix A to part 234, amend footnote 1 by removing the numerical amount “$105,000” and adding in its place the numerical amount “$109,819”. PART 235—[AMENDED] 67. The authority citation for part 235 continues to read as follows: Authority:

    49 U.S.C. 20103, 20107; 28 U.S.C. 2461, note; and 49 CFR 1.89.

    § 235.9 [Amended]
    68. Amend § 235.9 as follows: a. Remove the numerical amount “$650” a