82 FR 18559 - Adjustment of Civil Monetary Penalties for Inflation
DEPARTMENT OF EDUCATION Federal Register Volume 82, Issue 75 (April 20, 2017)
Federal Register Volume 82, Issue 75 (April 20, 2017)
| Page Range | 18559-18563 | |
| FR Document | 2017-08034 |
[Federal Register Volume 82, Number 75 (Thursday, April 20, 2017)] [Rules and Regulations] [Pages 18559-18563] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-08034] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF EDUCATION 34 CFR Part 36 RIN 1801-AA16 [Docket ID ED-2016-OGC-0051] Adjustment of Civil Monetary Penalties for Inflation AGENCY: Department of Education. ACTION: Final regulations. ----------------------------------------------------------------------- SUMMARY: The Department of Education (Department) issues these final regulations to adjust the Department's civil monetary penalties (CMPs) for inflation. An initial ``catch-up'' adjustment was required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Act), which amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (Inflation Adjustment Act). These final regulations provide the 2017 annual inflation adjustments to the initial ``catch-up'' adjustments we made on August 1, 2016, through an interim final rule (IFR). DATES: These regulations are effective April 20, 2017. The adjusted CMPs established by these regulations are applicable only to civil penalties assessed after April 20, 2017 whose associated violations occurred after November 2, 2015. For a description of the CMPs applicable under other circumstances, see the SUPPLEMENTARY INFORMATION section. FOR FURTHER INFORMATION CONTACT: Levon Schlichter, U.S. Department of Education, Office of the General Counsel, 400 Maryland Avenue SW., Room 6E235, Washington, DC 20202-2241. Telephone: (202) 453-6387 or by email: [email protected]. If you use a telecommunications device for the deaf or a text telephone, call the Federal Relay Service, toll free, at 1-800-877- 8339. Individuals with disabilities can obtain this document in an accessible format (e.g., Braille, large print, audiotape, or compact disc) on request to the contact person listed in this section. SUPPLEMENTARY INFORMATION: Background: The Inflation Adjustment Act (28 U.S.C. 2461 note) provides for the regular evaluation of CMPs to ensure that they continue to maintain their deterrent value. The Inflation Adjustment Act required that each agency issue regulations to adjust its CMPs beginning in 1996 and at least every four years thereafter. The Department published its most recent cost adjustment to each CMP in the Federal Register on October 2, 2012 (77 FR 60047), and those adjustments became effective on the date of publication. The 2015 Act (section 701 of Pub. L. 114-74) amended the Inflation Adjustment Act to improve the effectiveness of CMPs and to maintain their deterrent effect. The 2015 Act requires agencies to: (1) Adjust the level of CMPs with an initial ``catch-up'' adjustment through an IFR; and (2) make subsequent annual adjustments for inflation. Catch-up adjustments are 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 penalty was last adjusted by a statute other than the Inflation Adjustment Act, and the October 2015 CPI-U. Annual inflation adjustments are based on the percentage change between the October CPI- U preceding the date of each statutory adjustment, and the prior year's October CPI-U.\1\ --------------------------------------------------------------------------- \1\ If a statute that created a penalty is amended to change the penalty amount, the Department does not adjust the penalty in the year following the adjustment. --------------------------------------------------------------------------- The Department published an IFR with the initial ``catch-up'' penalty adjustment amounts on August 1, 2016 (81 FR 50321). These adjustments are currently in effect and apply to all CMPs covered by the Inflation Adjustment Act. We did not receive any public comments on this IFR. A CMP is defined in the Inflation Adjustment Act as any penalty, fine, or other 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 formula for the amount of a CMP inflation adjustment is prescribed by law, as explained in OMB Memorandum M-16-06 (February 24, 2016), and is not subject to the exercise of discretion by the Secretary of Education (Secretary). Under the 2015 Act, the Department was required to use, as the baseline for adjusting the CMPs in the IFR, the CMP amounts as they were most recently established or adjusted under a provision of law other than the Inflation Adjustment Act. In accordance with the 2015 Act, we did not use the amounts set out in 34 CFR part 36 in 2012 in the formula used in the IFR to adjust for inflation because those CMP amounts were updated pursuant to the Inflation Adjustment Act.\2\ Instead, the baselines we used in the IFR were the amounts set out most recently in each of the statutes that provide for civil penalties. Using these statutory CMPs, we determined which year those amounts were originally enacted by Congress (or the year the statutory amounts were last amended by the statute that established the penalty) and used the annual inflation adjustment multiplier corresponding to that year from Table A in OMB Memorandum M- 16-06. We then rounded the number to the nearest dollar and checked, as required by the Inflation Adjustment Act, to see if that adjusted amount exceeded 150 percent of the CMP amount that was established under 34 CFR part 36, and in effect on November 2, 2015. If any of the amounts exceeded 150 percent, we were required to use the lesser amount (the 150 percent amount). All of the adjusted amounts were less than 150 percent so we did not have to replace any of the amounts we calculated using the multiplier from Table A of OMB Memorandum M-16-06 with the lesser amount. --------------------------------------------------------------------------- \2\ As originally enacted, the Inflation Adjustment Act limited the first increased adjustment, which we made through regulation, to a maximum of 10 percent. This 10 percent limitation affected the increase we last made in the 2012 rulemaking. In the 2015 Act, Congress determined that limiting the first adjustments to 10 percent reduced the effectiveness of the penalties, so the 2015 Act requires us to use the statutory amounts as our baseline. --------------------------------------------------------------------------- In these final regulations, we adjust each CMP amount provided in the IFR by a factor of 1.01636, as directed by OMB Memorandum M-17-11. Effective Dates: The precise penalty amount that will apply to violations occurring before [[Page 18560]] April 20, 2017, the effective date of this final rule, depends on when the violation occurred and also when we assessed the penalty for the violation. For all violations occurring on or before November 2, 2015, the applicable penalty amount is the amount set forth in 34 CFR 36.2 prior to August 1, 2016 (the IFR publication date). For violations occurring after November 2, 2015, in general, there are three potential amounts that could apply: (1) The amount as set forth in 34 CFR 36.2 before August 1, 2016; \3\ (2) the amount set forth in 34 CFR 36.2 after publication of the IFR on August 1, 2016; or (3) the amount set forth in 34 CFR 36.2 through this final rule. The following chart shows which amount applies based on the assessment date for violations after November 2, 2015: --------------------------------------------------------------------------- \3\ There may be an unusual circumstance where the amount set forth in the prior regulations was superseded by a statute before August 1, 2016, in which case the statutory amount would apply. However, we have been unable to identify an instance where a statutory amendment superseded the regulatory amount in this timeframe. ---------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------- Date of Assessment................... Assessment after April Assessment between Assessment prior to 20, 2017 (final rule August 1, 2016 (IFR August 1, 2016 (IFR publication date). publication date) and publication date). April 20, 2017 (final rule publication date). Applicable Rule...................... This final rule........ 2016 IFR............... 34 CFR 36.2 as it existed before August 1, 2016. ---------------------------------------------------------------------------------------------------------------- The Department's Civil Monetary Penalties The following analysis calculates new CMPs for penalty statutes in the order in which they appear in 34 CFR 36.2. The 2015 Act provides that any increase to an agency's CMPs applies only to CMPs that are assessed after the effective date of the adjustments, including those whose associated violation predated such increase. These regulations are effective April 20, 2017. Therefore, the adjustments to the Department's CMPs made by these final regulations apply only to violations that are assessed after April 20, 2017. Statute: 20 U.S.C. 1015(c)(5). Current Regulations: The CMP for 20 U.S.C. 1015(c)(5) (Section 131(c)(5) of the Higher Education Act of 1965, as amended (HEA)), as last set out in statute in 1998 (Pub. L. 105-244, title I, Sec. 101(a), Oct. 7, 1998, 112 Stat. 1602), is a fine of up to $25,000 for failure by an institution of higher education (IHE) to provide information on the cost of higher education to the Commissioner of Education Statistics. In the IFR, we increased this amount to $36,256. New Regulations: The new penalty for this section is $36,849. Reason: Using the multiplier of 1.01636 from OMB Memorandum M-17- 11, the new penalty is calculated as follows: $36,256 x 1.01636 = $36,849.15, which makes the adjusted penalty $36,849, when rounded to the nearest dollar. Statute: 20 U.S.C. 1022d(a)(3). Current Regulations: The CMP for 20 U.S.C. 1022d(a)(3) (Section 205(a)(3) of the HEA), as last set out in statute in 2008 (Pub. L. 110- 315, title II, Sec. 201(2), Aug. 14, 2008, 122 Stat. 3147), provides for a fine of up to $27,500 for failure by an IHE to provide information to the State and the public regarding its teacher- preparation programs. In the IFR, we increased this amount to $30,200. New Regulations: The new penalty for this section is $30,694. Reason: Using the multiplier of 1.01636 from OMB Memorandum M-17- 11, the new penalty is calculated as follows: $30,200 x 1.01636 = $30,694.07, which makes the adjusted penalty $30,694, when rounded to the nearest dollar. Statute: 20 U.S.C. 1082(g). Current Regulations: The CMP for 20 U.S.C. 1082(g) (Section 432(g) of the HEA), as last set out in statute in 1986 (Pub. L. 99-498, title IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1401), provides for a fine of up to $25,000 for violations by lenders and guaranty agencies of Title IV of the HEA, which authorizes the Federal Family Education Loan Program. In the IFR, we increased this amount to $53,907. New Regulations: The new penalty for this section is $54,789. Reason: Using the multiplier of 1.01636 from OMB Memorandum M-17- 11, the new penalty is calculated as follows: $53,907 x 1.01636 = $54,788.92, which makes the adjusted penalty $54,789, when rounded to the nearest dollar. Statute: 20 U.S.C. 1094(c)(3)(B). Current Regulations: The CMP for 20 U.S.C. 1094(c)(3)(B) (Section 487(c)(3)(B) of the HEA), as set out in statute in 1986 (Pub. L. 99- 498, title IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1488), provides for a fine of up to $25,000 for an IHE's violation of Title IV of the HEA or its implementing regulations. Title IV authorizes various programs of student financial assistance. In the IFR, we increased this amount to $53,907. New Regulations: The new penalty for this section is $54,789. Reason: Using the multiplier of 1.01636 from OMB Memorandum M-17- 11, the new penalty is calculated as follows: $53,907 x 1.01636 = $54,788.92, which makes the adjusted penalty $54,789, when rounded to the nearest dollar. Statute: 20 U.S.C. 1228c(c)(2)(E). Current Regulations: The CMP for 20 U.S.C. 1228c(c)(2)(E) (Section 429 of the General Education Provisions Act), as set out in statute in 1994 (Pub. L. 103-382, title II, Sec. 238, Oct. 20, 1994, 108 Stat. 3918), provides for a fine of up to $1,000 for an educational organization's failure to disclose certain information to minor students and their parents. In the IFR, we increased this amount to $1,591. New Regulations: The new penalty for this section is $1,617. Reason: Using the multiplier of 1.01636 from OMB Memorandum M-17- 11, the new penalty is calculated as follows: $1,591 x 1.01636 = $1,617.03, which makes the adjusted penalty $1,617, when rounded to the nearest dollar. Statute: 31 U.S.C. 1352(c)(1) and (c)(2)(A). Current Regulations: The CMPs for 31 U.S.C. 1352(c)(1) and (c)(2)(A), as set out in statute in 1989, provide for a fine of $10,000 to $100,000 for recipients of Government grants, contracts, etc. that improperly lobby Congress or the Executive Branch with respect to the award of Government grants and contracts. In the IFR, we increased these amounts to $18,936 to $189,361. New Regulations: The new penalties for these sections are $19,246 to $192,459. Reason: Using the multiplier of 1.01636 from OMB Memorandum M-17- 11, the new minimum penalty is calculated as follows: $18,936 x 1.01636 = $19,245.79, which makes the adjusted penalty $19,246, when rounded to the nearest dollar. The new maximum penalty is calculated as follows: $189,361.00 x 1.01636 = $192,458.95, [[Page 18561]] which makes the adjusted penalty $192,459, when rounded to the nearest dollar. Statute: 31 U.S.C. 3802(a)(1) and (a)(2). Current Regulations: The CMPs for 31 U.S.C. 3802(a)(1) and (a)(2), as set out in statute in 1986 (Pub. L. 99-509, title VI, Sec. 6103(a), Oct. 21, 1986, 100 Stat. 1937), provide for a fine of up to $5,000 for false claims and statements made to the Government. In the IFR, we increased this amount to $10,781. New Regulations: The new penalty for this section is $10,957. Reason: Using the multiplier of 1.01636 from OMB Memorandum M-17- 11, the new penalty is calculated as follows: $10,781 x 1.01636 = $10,957.38, which makes the adjusted penalty $10,957, when rounded to the nearest dollar. Executive Orders 12866, 13563, and 13771 Regulatory Impact Analysis Under Executive Order 12866, the Secretary must determine whether this regulatory action is ``significant'' and, therefore, subject to the requirements of the Executive order and subject to review by the Office of Management and Budget (OMB). Section 3(f) of Executive Order 12866 defines a significant regulatory action as an action likely to result in a rule that may-- (1) Have an annual effect on the economy of $100 million or more, or adversely affect a sector of the economy; productivity; competition; jobs; the environment; public health or safety; or State, local, or tribal governments or communities in a material way (also referred to as ``economically significant'' regulations); (2) Create serious inconsistency or otherwise interfere with an action taken or planned by another agency; (3) Materially alter the budgetary impacts of entitlement grants, user fees, or loan programs or the rights and obligations of recipients thereof; or (4) Raise novel legal or policy issues arising out of legal mandates, the President's priorities, or the principles stated in the Executive order. Based on the number and amount of penalties imposed under the CMPs amended in these final regulations, we have determined that this regulatory action will have none of the economic impacts described under the Executive order. These final regulations are required by statute, the adjusted CMPs are not at the Secretary's discretion, and, accordingly, these final regulations do not have any of the policy impacts described under the Executive order. Because these final regulations are not a significant regulatory action, they are not subject to review by OMB under section 3(f) of Executive Order 12866. We have also reviewed these regulations under Executive Order 13563, which supplements and explicitly reaffirms the principles, structures, and definitions governing regulatory review established in Executive Order 12866. To the extent permitted by law, Executive Order 13563 requires that an agency-- (1) Propose or adopt regulations only upon a reasoned determination that their benefits justify their costs (recognizing that some benefits and costs are difficult to quantify); (2) Tailor its regulations to impose the least burden on society, consistent with obtaining regulatory objectives and taking into account, among other things, and to the extent practicable, the costs of cumulative regulations; (3) In choosing among alternative regulatory approaches, select those approaches that maximize net benefits (including potential economic, environmental, public health and safety, and other advantages; distributive impacts; and equity); (4) To the extent feasible, specify performance objectives, rather than the behavior or manner of compliance a regulated entity must adopt; and (5) Identify and assess available alternatives to direct regulation, including economic incentives--such as user fees or marketable permits--to encourage the desired behavior, or providing information that enables the public to make choices. Executive Order 13563 also requires an agency ``to use the best available techniques to quantify anticipated present and future benefits and costs as accurately as possible.'' The Office of Information and Regulatory Affairs of OMB has emphasized that these techniques may include ``identifying changing future compliance costs that might result from technological innovation or anticipated behavioral changes.'' We are issuing these final regulations as required by statute. The Secretary has no discretion to consider alternative approaches as delineated in the Executive order. Based on this analysis and the reasons stated in the preamble, the Department believes that these final regulations are consistent with the principles in Executive Order 13563. Under Executive Order 13771, if the Department proposes for notice and comment or otherwise promulgates a new regulation that is a significant regulatory action under Executive Order 12866, it must identify two existing regulations for elimination. For Fiscal Year 2017, any new incremental costs associated with the new regulation must be fully offset by the elimination of existing costs through the repeal of at least two regulations. These final regulations are not a significant regulatory action. Therefore, the requirements of Executive Order 13771 do not apply. Waiver of Rulemaking and Delayed Effective Date Under the Administrative Procedure Act (APA) (5 U.S.C. 553), the Department generally offers interested parties the opportunity to comment on proposed regulations. However, the APA provides that an agency is not required to conduct notice-and-comment rulemaking when the agency, for good cause, finds that notice and public comment thereon are impracticable, unnecessary, or contrary to the public interest (5 U.S.C. 553(b)(B)). There is good cause to waive rulemaking here as unnecessary. Rulemaking is ``unnecessary'' in those situations in which ``the administrative rule is a routine determination, insignificant in nature and impact, and inconsequential to the industry and to the public.'' Utility Solid Waste Activities Group v. EPA, 236 F.3d 749, 755 (D.C. Cir. 2001), quoting U.S. Department of Justice, Attorney General's Manual on the Administrative Procedure Act 31 (1947) and South Carolina v. Block, 558 F. Supp. 1004, 1016 (D.S.C. 1983). These regulations merely implement the statutory mandate to adjust CMPs for inflation. The regulations reflect administrative computations performed by the Department as prescribed by the statute, and the Secretary has no discretion in determining the new penalties. The APA also generally requires that regulations be published at least 30 days before their effective date, unless the agency has good cause to implement its regulations sooner (5 U.S.C. 553(d)(3)). Again, because these final regulations merely implement non-discretionary administrative computations, there is good cause to make them effective on the day they are published. Regulatory Flexibility Act Certification The Secretary certifies that these regulations will not have a significant economic impact on a substantial number of small entities. The formula for the amount of the inflation adjustments is prescribed by statute and is not subject to the Secretary's discretion. These CMPs are infrequently imposed by the Secretary, and the [[Page 18562]] regulations do not involve any special considerations that might affect the imposition of CMPs on small entities. Paperwork Reduction Act of 1995 These regulations do not contain any information collection requirements. Intergovernmental Review This program is not subject to Executive Order 12372 and the regulations in 34 CFR part 79. Assessment of Educational Impact Based on our own review, we have determined that these regulations do not require transmission of information that any other agency or authority of the United States gathers or makes available. Electronic Access to This Document: The official version of this document is the document published in the Federal Register. Free Internet access to the official edition of the Federal Register and the Code of Federal Regulations is available via the Federal Digital System at: www.thefederalregister.org/fdsys. At this site you can view this document, as well as all other documents of this Department published in the Federal Register, in text or Portable Document Format (PDF). To use PDF you must have Adobe Acrobat Reader, which is available free at the site. You may also access documents of the Department published in the Federal Register by using the article search feature at: www.federalregister.gov. Specifically, through the advanced search feature at this site, you can limit your search to documents published by the Department. List of Subjects in 34 CFR Part 36 Claims, Fraud, Penalties. Dated: April 17, 2017. Betsy DeVos, Secretary of Education. For the reasons discussed in the preamble, the Secretary amends part 36 of title 34 of the Code of Federal Regulations as follows: PART 36--ADJUSTMENT OF CIVIL MONETARY PENALTIES FOR INFLATION 0 1. The authority citation for part 36 continues to read as follows: Authority: 20 U.S.C. 1221e-3 and 3474; 28 U.S.C. 2461 note, as amended by Sec. 701 of Pub. Law 114-74, unless otherwise noted. 0 2. Section 36.2 is amended by revising Table I to read as follows: Sec. 36.2 Penalty adjustment. * * * * * Table I, Section 36.2--Civil Monetary Penalty Inflation Adjustments ------------------------------------------------------------------------ New maximum (and minimum, if Statute Description applicable) penalty amount ------------------------------------------------------------------------ 20 U.S.C. 1015(c)(5) (Section Provides for a fine, $36,849 131(c)(5) of the Higher as set by Congress in Education Act of 1965 (HEA)). 1998, of up to $25,000 for failure by an institution of higher education (IHE) to provide information on the cost of higher education to the Commissioner of Education Statistics. 20 U.S.C. 1022d(a)(3) (Section Provides for a fine, 30,694 205(a)(3) of the HEA). as set by Congress in 2008, of up to $27,500 for failure by an IHE to provide information to the State and the public regarding its teacher- preparation programs. 20 U.S.C. 1082(g) (Section Provides for a civil 54,789 432(g) of the HEA). penalty, as set by Congress in 1986, of up to $25,000 for violations by lenders and guaranty agencies of Title IV of the HEA, which authorizes the Federal Family Education Loan Program. 20 U.S.C. 1094(c)(3)(B) Provides for a civil 54,789 (Section 487(c)(3)(B) of the penalty, as set by HEA). Congress in 1986, of up to $25,000 for an IHE's violation of Title IV of the HEA, which authorizes various programs of student financial assistance. 20 U.S.C. 1228c(c)(2)(E) Provides for a civil 1,617 (Section 429 of the General penalty, as set by Education Provisions Act). Congress in 1994, of up to $1,000 for an educational organization's failure to disclose certain information to minor students and their parents. 31 U.S.C. 1352(c)(1) and Provides for a civil 19,246 to (c)(2)(A). penalty, as set by 192,459 Congress in 1989, of $10,000 to $100,000 for recipients of Government grants, contracts, etc. that improperly lobby Congress or the Executive Branch with respect to the award of Government grants and contracts. 31 U.S.C. 3802(a)(1) and Provides for a civil 10,957 (a)(2). penalty, as set by Congress in 1986, of up to $5,000 for false claims and statements made to the Government. ------------------------------------------------------------------------ * * * * * [FR Doc. 2017-08034 Filed 4-19-17; 8:45 am] BILLING CODE 4000-01-P
![Federal Register / Vol. 82, No. 75 / Thursday, April 20, 2017 / Rules and Regulations 18559
Captain of the Port Lake Michigan or a 2241. Telephone: (202) 453–6387 or by provided for by Federal law; (2)
designated representative. email: levon.schlichter@ed.gov. assessed or enforced by an agency
This document is issued under If you use a telecommunications pursuant to Federal law; and (3)
authority of 33 CFR 165.929, Safety device for the deaf or a text telephone, assessed or enforced pursuant to an
Zones; Annual events requiring safety call the Federal Relay Service, toll free, administrative proceeding or a civil
zones in the Captain of the Port Lake at 1–800–877–8339. action in the Federal courts.
Michigan zone, and 5 U.S.C. 552(a). In Individuals with disabilities can The formula for the amount of a CMP
addition to this publication in the obtain this document in an accessible inflation adjustment is prescribed by
Federal Register, the Coast Guard plans format (e.g., Braille, large print, law, as explained in OMB Memorandum
to provide the maritime community audiotape, or compact disc) on request M–16–06 (February 24, 2016), and is not
with advance notification for the to the contact person listed in this subject to the exercise of discretion by
enforcement of this zone via Broadcast section. the Secretary of Education (Secretary).
Notice to Mariners or Local Notice to SUPPLEMENTARY INFORMATION:
Under the 2015 Act, the Department
Mariners. The Captain of the Port Lake Background: was required to use, as the baseline for
Michigan or a representative may be The Inflation Adjustment Act (28 adjusting the CMPs in the IFR, the CMP
contacted via Channel 16, VHF–FM. U.S.C. 2461 note) provides for the amounts as they were most recently
regular evaluation of CMPs to ensure established or adjusted under a
Dated: April 12, 2017.
that they continue to maintain their provision of law other than the Inflation
A.B. Cocanour, Adjustment Act. In accordance with the
Captain, U.S. Coast Guard, Captain of the
deterrent value. The Inflation
Adjustment Act required that each 2015 Act, we did not use the amounts
Port Lake Michigan. set out in 34 CFR part 36 in 2012 in the
[FR Doc. 2017–07982 Filed 4–19–17; 8:45 am]
agency issue regulations to adjust its
CMPs beginning in 1996 and at least formula used in the IFR to adjust for
BILLING CODE 9110–04–P
every four years thereafter. The inflation because those CMP amounts
Department published its most recent were updated pursuant to the Inflation
cost adjustment to each CMP in the Adjustment Act.2 Instead, the baselines
DEPARTMENT OF EDUCATION Federal Register on October 2, 2012 (77 we used in the IFR were the amounts set
FR 60047), and those adjustments out most recently in each of the statutes
34 CFR Part 36 that provide for civil penalties. Using
became effective on the date of
RIN 1801–AA16 publication. these statutory CMPs, we determined
The 2015 Act (section 701 of Pub. L. which year those amounts were
[Docket ID ED–2016–OGC–0051] originally enacted by Congress (or the
114–74) amended the Inflation
Adjustment Act to improve the year the statutory amounts were last
Adjustment of Civil Monetary Penalties amended by the statute that established
for Inflation effectiveness of CMPs and to maintain
their deterrent effect. the penalty) and used the annual
AGENCY: Department of Education. The 2015 Act requires agencies to: (1) inflation adjustment multiplier
Adjust the level of CMPs with an initial corresponding to that year from Table A
ACTION: Final regulations.
‘‘catch-up’’ adjustment through an IFR; in OMB Memorandum M–16–06. We
SUMMARY: The Department of Education and (2) make subsequent annual then rounded the number to the nearest
(Department) issues these final adjustments for inflation. Catch-up dollar and checked, as required by the
regulations to adjust the Department’s adjustments are based on the percentage Inflation Adjustment Act, to see if that
civil monetary penalties (CMPs) for change between the Consumer Price adjusted amount exceeded 150 percent
inflation. An initial ‘‘catch-up’’ Index for all Urban Consumers (CPI–U) of the CMP amount that was established
adjustment was required by the Federal under 34 CFR part 36, and in effect on
for the month of October in the year the
Civil Penalties Inflation Adjustment Act November 2, 2015. If any of the amounts
penalty was last adjusted by a statute
Improvements Act of 2015 (2015 Act), exceeded 150 percent, we were required
other than the Inflation Adjustment Act,
which amended the Federal Civil to use the lesser amount (the 150
and the October 2015 CPI–U. Annual
Penalties Inflation Adjustment Act of percent amount). All of the adjusted
inflation adjustments are based on the
1990 (Inflation Adjustment Act). These amounts were less than 150 percent so
percentage change between the October
final regulations provide the 2017 we did not have to replace any of the
CPI–U preceding the date of each
annual inflation adjustments to the amounts we calculated using the
statutory adjustment, and the prior
initial ‘‘catch-up’’ adjustments we made multiplier from Table A of OMB
year’s October CPI–U.1
on August 1, 2016, through an interim Memorandum M–16–06 with the lesser
The Department published an IFR
final rule (IFR). amount.
with the initial ‘‘catch-up’’ penalty In these final regulations, we adjust
DATES: These regulations are effective adjustment amounts on August 1, 2016 each CMP amount provided in the IFR
April 20, 2017. The adjusted CMPs (81 FR 50321). These adjustments are by a factor of 1.01636, as directed by
established by these regulations are currently in effect and apply to all CMPs OMB Memorandum M–17–11.
applicable only to civil penalties covered by the Inflation Adjustment Effective Dates:
assessed after April 20, 2017 whose Act. We did not receive any public The precise penalty amount that will
associated violations occurred after comments on this IFR. apply to violations occurring before
November 2, 2015. For a description of A CMP is defined in the Inflation
the CMPs applicable under other Adjustment Act as any penalty, fine, or 2 As originally enacted, the Inflation Adjustment
pmangrum on DSK3GDR082PROD with RULES
circumstances, see the SUPPLEMENTARY other sanction that is (1) for a specific Act limited the first increased adjustment, which
INFORMATION section. monetary amount as provided by we made through regulation, to a maximum of 10
percent. This 10 percent limitation affected the
FOR FURTHER INFORMATION CONTACT: Federal law, or has a maximum amount increase we last made in the 2012 rulemaking. In
Levon Schlichter, U.S. Department of the 2015 Act, Congress determined that limiting the
1 If a statute that created a penalty is amended to first adjustments to 10 percent reduced the
Education, Office of the General change the penalty amount, the Department does effectiveness of the penalties, so the 2015 Act
Counsel, 400 Maryland Avenue SW., not adjust the penalty in the year following the requires us to use the statutory amounts as our
Room 6E235, Washington, DC 20202– adjustment. baseline.
VerDate Sep<11>2014 13:10 Apr 19, 2017 Jkt 241001 PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 E:\FR\FM\20APR1.SGM 20APR1](https://thefederalregister.org/doc/82_FR_18634/page/1.svg)
![18562 Federal Register / Vol. 82, No. 75 / Thursday, April 20, 2017 / Rules and Regulations
regulations do not involve any special Register. Free Internet access to the Dated: April 17, 2017.
considerations that might affect the official edition of the Federal Register Betsy DeVos,
imposition of CMPs on small entities. and the Code of Federal Regulations is Secretary of Education.
available via the Federal Digital System
Paperwork Reduction Act of 1995 For the reasons discussed in the
at: www.gpo.gov/fdsys. At this site you
preamble, the Secretary amends part 36
These regulations do not contain any can view this document, as well as all
of title 34 of the Code of Federal
information collection requirements. other documents of this Department
Regulations as follows:
published in the Federal Register, in
Intergovernmental Review
text or Portable Document Format PART 36—ADJUSTMENT OF CIVIL
This program is not subject to (PDF). To use PDF you must have MONETARY PENALTIES FOR
Executive Order 12372 and the Adobe Acrobat Reader, which is INFLATION
regulations in 34 CFR part 79. available free at the site.
Assessment of Educational Impact You may also access documents of the ■ 1. The authority citation for part 36
Department published in the Federal continues to read as follows:
Based on our own review, we have Register by using the article search
determined that these regulations do not feature at: www.federalregister.gov. Authority: 20 U.S.C. 1221e–3 and 3474; 28
require transmission of information that U.S.C. 2461 note, as amended by § 701 of
Specifically, through the advanced
Pub. Law 114–74, unless otherwise noted.
any other agency or authority of the search feature at this site, you can limit
United States gathers or makes your search to documents published by ■ 2. Section 36.2 is amended by revising
available. the Department. Table I to read as follows:
Electronic Access to This Document:
List of Subjects in 34 CFR Part 36 § 36.2 Penalty adjustment.
The official version of this document is
the document published in the Federal Claims, Fraud, Penalties. * * * * *
TABLE I, SECTION 36.2—CIVIL MONETARY PENALTY INFLATION ADJUSTMENTS
New maximum (and
Statute Description minimum, if applicable)
penalty amount
20 U.S.C. 1015(c)(5) (Section 131(c)(5) of the Higher Provides for a fine, as set by Congress in 1998, of up $36,849
Education Act of 1965 (HEA)). to $25,000 for failure by an institution of higher edu-
cation (IHE) to provide information on the cost of
higher education to the Commissioner of Education
Statistics.
20 U.S.C. 1022d(a)(3) (Section 205(a)(3) of the HEA) .... Provides for a fine, as set by Congress in 2008, of up 30,694
to $27,500 for failure by an IHE to provide informa-
tion to the State and the public regarding its teacher-
preparation programs.
20 U.S.C. 1082(g) (Section 432(g) of the HEA) ............... Provides for a civil penalty, as set by Congress in 54,789
1986, of up to $25,000 for violations by lenders and
guaranty agencies of Title IV of the HEA, which au-
thorizes the Federal Family Education Loan Program.
20 U.S.C. 1094(c)(3)(B) (Section 487(c)(3)(B) of the Provides for a civil penalty, as set by Congress in 54,789
HEA). 1986, of up to $25,000 for an IHE’s violation of Title
IV of the HEA, which authorizes various programs of
student financial assistance.
20 U.S.C. 1228c(c)(2)(E) (Section 429 of the General Provides for a civil penalty, as set by Congress in 1,617
Education Provisions Act). 1994, of up to $1,000 for an educational organiza-
tion’s failure to disclose certain information to minor
students and their parents.
31 U.S.C. 1352(c)(1) and (c)(2)(A) ................................... Provides for a civil penalty, as set by Congress in 19,246 to 192,459
1989, of $10,000 to $100,000 for recipients of Gov-
ernment grants, contracts, etc. that improperly lobby
Congress or the Executive Branch with respect to the
award of Government grants and contracts.
31 U.S.C. 3802(a)(1) and (a)(2) ....................................... Provides for a civil penalty, as set by Congress in 10,957
1986, of up to $5,000 for false claims and statements
made to the Government.
* * * * *
[FR Doc. 2017–08034 Filed 4–19–17; 8:45 am]
BILLING CODE 4000–01–P
pmangrum on DSK3GDR082PROD with RULES
VerDate Sep<11>2014 16:08 Apr 19, 2017 Jkt 241001 PO 00000 Frm 00016 Fmt 4700 Sfmt 4700 E:\FR\FM\20APR1.SGM 20APR1](https://thefederalregister.org/doc/82_FR_18634/page/4.svg)
![Federal Register / Vol. 82, No. 75 / Thursday, April 20, 2017 / Rules and Regulations 18563
LIBRARY OF CONGRESS Participants (Music Community); 4 the same information that would be in the
Performing Rights Organizations (Music footer. Comments of the Music
Copyright Royalty Board PROs); 5 the Program Suppliers; 6 and Community Participants (Music
the Settling Devotional Claimants Community Comments) at 9. The Judges
37 CFR Parts 301, 350 and 351 (SDC).7 All interested parties supported find this recommendation to be
the Judges’ decision to implement an reasonable and will adopt it in the final
[Docket No. 16–CRB–0015–RM] electronic filing system and to adopt rule.
rules concerning the use of that system,
Procedural Regulations for the though most recommended some Commenter Music PROs
Copyright Royalty Board: changes to the proposed rules. recommended that the requirement for a
Organization, General Administrative footer be eliminated from the rules. In
Provisions II. Comments on Proposed Rules and the view of the Music PROs, eCRB
Judges’ Findings should be designed to add a footer
AGENCY: Copyright Royalty Board, The Judges address the comments on automatically. Comments of Performing
Library of Congress. a section-by-section basis. The Judges Rights Organizations (Music PRO
ACTION: Final rule. will adopt without change those Comments) at 2–3.
sections that no interested party eCRB will add a stamp to the first
SUMMARY: The Copyright Royalty Judges commented on.8
are amending and augmenting page of each filed document that
procedural regulations governing the Section 350.3(a)(1): Format—Caption includes, inter alia, the date and time
filing and delivery of documents to and Description the document was filed. It will not add
allow for electronic filing of documents. The Music Community recommended a footer to each page, however. While
DATES: Effective April 20, 2017. that the proposed rule be modified so the Judges may revisit this design choice
FOR FURTHER INFORMATION CONTACT: that filers would not be required to put in a future revision of the system, filers
Kimberly Whittle, Attorney Advisor, by a footer on the first page of a filed will be required to add footers to their
telephone at (202) 707–7658 or email at document, noting that the first page documents for the time being. The
crb@loc.gov. includes a caption that conveys the Judges note that the burden of adding
SUPPLEMENTARY INFORMATION:
footers to documents created in a word
4 The Music Community Participants consist of processing program is minimal.
I. Introduction SoundExchange, Inc., the Recording Industry However, the Music PROs’ concern is
Association of America, Inc., the American
On November 23, 2016, the Copyright Association of Independent Music, the American well-taken that adding footers to some
Royalty Judges (Judges) published a Federation of Musicians of the United States and document exhibits (e.g., exhibits that are
proposed rule in the Federal Register Canada, The Screen Actors Guild—American reproductions of paper documents)
Federation of Television and Radio Artists, and the
seeking comments on proposed National Music Publishers’ Association.
might not be technologically feasible.
amendments relating to an automated 5 The Music PROs consist of Broadcast Music, The Judges will adopt language limiting
system, designated ‘‘eCRB.’’ The rules Inc., the American Society of Composers, Authors the application of the requirement for
address electronic filing of documents and Publishers, and SESAC, Inc. including footers on exhibits to the
6 The Program Suppliers are comprised of The
and related matters such as the form and extent it is technologically feasible to do
Motion Picture Association of America, Inc., its
content of documents that are filed with member companies and ‘‘other producers and/or so using software available to the
the Judges.1 The Judges received syndicators of syndicated movies, series, specials, general public.
comments from the following interested and non-team sports broadcast by television
parties: The Commercial Television stations.’’ Program Suppliers Comments at 1. Section 350.3(a)(2): Format—Page
7 The Settling Devotional Claimants are
Claimants (CTV); 2 Independent Layout
comprised of: Amazing Facts, Inc., American
Producers Group and Multigroup Religious Town Hall Meeting, Inc., Catholic The Music PROs object to this
Claimants (IPG); Joint Sports Claimants Communications Corporation, Christian Television
Network, Inc., The Christian Broadcasting Network, provision’s requirement that exhibits or
(JSC); 3 the Music Community
Inc., Coral Ridge Ministries Media, Inc., attachments to documents reflect the
Cornerstone Television, Inc., Cottonwood Christian docket number of the proceeding and
1 See 81 FR 84526. Center, Crenshaw Christian Center, Crystal
2 CTV does not identify its constituent members Cathedral Ministries, Inc., Family Worship Center that the pages are numbered
in its comments. In a Petition to Participate filed in Church, Inc. (D/B/A Jimmy Swaggart Ministries), appropriately, opining that ‘‘[m]ost if
a recent cable distribution proceeding, CTV is Free Chapel Worship Center, Inc., In Touch not all electronic filing systems
identified as ‘‘U.S. commercial television broadcast Ministries, Inc., It Is Written, Inc., John Hagee
stations’’ represented by the National Association of Ministries, Inc. (aka Global Evangelism Television),
automatically create a legend on each
Broadcasters, through its counsel (the same counsel Joyce Meyer Ministries, Inc. (F/K/A Life In The page of a filed document. . . .’’ Music
that prepared the CTV Comments). See Joint Word, Inc.), Kerry Shook Ministries (aka Fellowship PRO Comments at 3. eCRB will not
Petition to Participate of the National Association of the Woodlands), Lakewood Church (aka Joel create a legend on each page of a filed
of Broadcasters at 1, Docket No. 14–CB–0010–CD Osteen Ministries), Liberty Broadcasting Network,
(2013). The Judges assume that ‘‘CTV’’ denominates Inc., Living Word Christian Center, Living Church document. Consequently, the Judges
the same or a similar group of entities in this of God (International), Inc., Messianic Vision, Inc., will retain the requirement in the final
rulemaking. It would have assisted the Judges and New Psalmist Baptist Church, Oral Roberts rule. As discussed above, however, the
provided a more complete record if the CTV Evangelistic Association, Inc., Philadelphia Church
Comments had identified CTV and its interest in of God, Inc., RBC Ministries, Rhema Bible Church Judges recognize that in certain
this rulemaking. (aka Kenneth Hagin Ministries), Ron Phillips instances (e.g., when attachments or
3 The JSC is comprised of Office of the Ministries, St. Ann’s Media, The Potter’s House Of exhibits are reproductions of paper
pmangrum on DSK3GDR082PROD with RULES
Commissioner of Baseball, National Football Dallas, Inc. (d/b/a T.D. Jakes Ministries), Word of
God Fellowship, Inc., d/b/a Daystar Television
documents) there may be technological
League, National Basketball Association, Women’s
National Basketball Association, National Hockey Network, Billy Graham Evangelistic Association, impediments to adding footers to an
League, and the National Collegiate Athletic and Zola Levitt Ministries. SDC Comments at 1 n.1. attachment or exhibit.9 The Judges will,
Association. The JSC did not comment on any 8 The Judges received no comments on proposed
9 The Judges note that Adobe Acrobat software
specific provisions, merely noting that they ‘‘have sections 301.2, 350.1, 350.2, 350.3(a)(3), 350.3(b)(1),
no objection or suggested revisions to the proposed 350.3(b)(4), 350.3(b)(7), 350.5(b), 350.5(d), 350.5(e), permits users to add headers and footers to scanned
rules.’’ Comments of the Joint Sports Claimants at 350.5(f), 350.5(g), 350.6(d), 350.6(e), 350.7(a), Continued
1. 350.7(b), and 350.8.
VerDate Sep<11>2014 16:08 Apr 19, 2017 Jkt 241001 PO 00000 Frm 00017 Fmt 4700 Sfmt 4700 E:\FR\FM\20APR1.SGM 20APR1](https://thefederalregister.org/doc/82_FR_18634/page/5.svg)
Document Created: 2017-04-20 01:42:18
Document Modified: 2017-04-20 01:42:18
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final regulations. | |
| Dates | These regulations are effective April 20, 2017. The adjusted CMPs established by these regulations are applicable only to civil penalties assessed after April 20, 2017 whose associated violations occurred after November 2, 2015. For a description of the CMPs applicable under other circumstances, see the SUPPLEMENTARY INFORMATION section. | |
| Contact | Levon Schlichter, U.S. Department of Education, Office of the General Counsel, 400 Maryland Avenue SW., Room 6E235, Washington, DC 20202-2241. Telephone: (202) 453-6387 or by email: [email protected] | |
| FR Citation | 82 FR 18559 | |
| RIN Number | 1801-AA16 | |
| CFR Associated | Claims; Fraud and Penalties |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR