82 FR 24521 - Inflation Catch-Up Adjustment of Civil Monetary Penalty Amounts Final Rule and Adjustment of Civil Monetary Penalty Amounts for 2017
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Federal Register Volume 82, Issue 102 (May 30, 2017)
Federal Register Volume 82, Issue 102 (May 30, 2017)
| Page Range | 24521-24525 | |
| FR Document | 2017-11056 |
[Federal Register Volume 82, Number 102 (Tuesday, May 30, 2017)] [Rules and Regulations] [Pages 24521-24525] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-11056] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 24 CFR Parts 28, 30, 87, 180, and 3282 [Docket No. FR-5942-F-02] RIN 2501-AD79 Inflation Catch-Up Adjustment of Civil Monetary Penalty Amounts Final Rule and Adjustment of Civil Monetary Penalty Amounts for 2017 AGENCY: Office of the General Counsel, HUD. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This rule makes final the interim final rule, published on June 15, 2016, to amend HUD's civil monetary penalty (CMP) regulations. The interim final rule applied a new methodology to calculate civil money penalties as mandated by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, starting with a ``catch up'' adjustment to correct previous inaccuracies; removed three obsolete civil monetary penalty provisions; and made a technical change to the existing codified regulation implementing the Program Fraud Civil Remedies Act. The changes from the interim final rule made final by this final rule continue to be effective as of August 16, 2016. In addition, this rule provides for 2017 inflation adjustments of civil monetary penalty amounts required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, and makes three technical amendments and a conforming statutory change. DATES: Effective date: June 29, 2017. Applicability date: The applicability date for catch-up adjustment was August 16, 2016. FOR FURTHER INFORMATION CONTACT: Dane Narode, Associate General Counsel, Office of Program Enforcement, Department of Housing and Urban Development, 1250 Maryland Avenue SW., Suite 200, Washington, DC 20024; telephone number 202-245-4141 (this is not a toll-free number). Hearing- or speech-impaired individuals may access this number via TTY by calling the Federal Information Relay Service, toll-free, at 800- 877-8339. SUPPLEMENTARY INFORMATION: I. Background A. The June 15, 2016, Interim Rule The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Act) (Pub. L. 114-74) amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note) requiring all Federal agencies to issue an interim final rule implementing changes to their civil money penalties. On June 15, 2016, pursuant to the requirements of the 2015 Act, HUD published an interim final rule for public comment, entitled ``Inflation Catch-Up Adjustment of Civil Monetary Penalty Amounts'' (81 FR 38931). The 2015 Act required agencies to make an initial catch-up adjustment by interim final rule, using a new methodology designed to correct inaccuracies in the previous method of computing inflation adjustments. In order to address these inaccuracies, the 2015 Act excluded adjustments made under the law prior to its amendment, and it provided that the initial catch-up adjustment was the percentage by which [[Page 24522]] the Consumer Price Index (CPI) for the month of October 2015 exceeded that of the month of October of the calendar year during which the amount of the CMP was originally established or otherwise adjusted under a provision of law other than the Federal Civil Money Penalties Inflation Adjustment Act of 1990. Increases in the initial catch-up adjustment were capped at 150 percent of the amount of the CMP in effect as of the date of enactment of the 2015 Act. The interim final rule established the new adjusted penalty amount for each provision under which HUD is authorized to assess a CMP (81 FR 38935-38936); removed the obsolete CMP provisions that were codified at 24 CFR 30.30, 30.55, and 30.69 (81 FR 38935); and made a correction to 24 CFR 28.10 to include liability for causing a false claim or statement to be made, in addition to liability for making a false claim or statement (81 FR 38935). The public comment period for the interim final rule closed on August 15, 2016. The interim final rule became effective on August 16, 2016. The August 16, 2016, effective date for the amendments made by the interim final rule is unchanged. HUD received one comment in response to the interim final rule, but it was not actually relevant to any issue in the interim final rule.\1\ --------------------------------------------------------------------------- \1\ The comment is available for public inspection at: https://www.regulations.gov/docket?D=HUD-2016-0062. --------------------------------------------------------------------------- B. This 2017 Inflation Adjustment After the catch-up adjustment, the 2015 Act requires agencies to make subsequent annual adjustments for inflation ``notwithstanding section 553 of title 5, United States Code.'' Section 553 refers to the Administrative Procedure Act, which might otherwise require a delay for advance notice and opportunity for public comment on future annual inflation adjustments. The first of these subsequent adjustments is for 2017. The annual adjustment is based on the percent change between the U.S. Department of Labor's Consumer Price Index for All Urban Consumers (``CPI-U'') for the month of October preceding the date of the adjustment, and the CPI-U for October of the prior year (28 U.S.C. 2461 note, section (5)(b)(1)). Based on that formula, the cost-of-living adjustment multiplier for 2017 is 1.01636.\2\ Pursuant to the 2015 Act, adjustments are rounded to the nearest dollar.\3\ --------------------------------------------------------------------------- \2\ Office of Management and Budget, M-17-11, Memorandum for the Heads of Executive Departments and Agencies, Implementation of the 2017 annual adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act. (https://obamawhitehouse.archives.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf). (October 2016 CPI-U (241.729) - October 2015 CPI-U (237.838) = 1.01636.) \3\ 28 U.S.C. 2461 note. --------------------------------------------------------------------------- II. This Final Rule This rule makes final the June 15, 2016, interim rule. In addition, this rule makes the required 2017 inflation adjustment. Since HUD is not applying these adjustments retroactively, the 2016 increases being finalized apply to violations occurring prior to the effective date of this final rule (and on and after the effective date of the 2016 interim rule) and the 2017 increases apply to violations occurring on or after this rule's effective date. Along with the 2017 inflation adjustment in this final rule, HUD also makes conforming and technical amendments to Sec. Sec. 30.5, 30.10, 30.35, 30.36, and 30.80. Specifically, references to the former mortgage assignment procedures (in Sec. 30.35), Urban Homesteading program (in Sec. Sec. 30.5 and 30.80), and the Loan Correspondent program (in Sec. 30.36) are removed, as those programs have been ended and are no longer active. In addition, the Helping Families Save Their Homes Act of 2009 (Pub. L. 111-22) amended the HUD Reform Act of 1989 (12 U.S.C. 1735f-14(a)(2)) definition for ``knowing or knowingly'' as it applies to civil money penalties against mortgagees, lenders, and other participants in FHA programs. This rule amends the definition for ``knowing or knowingly'' in Sec. 30.10 to include the 2009 statutory definition. For each component, HUD provides a table showing how the penalties are being adjusted for 2017 pursuant to the 2015 Act. In the first column, HUD provides a description of the penalty. In the second column (``Statutory Citation,'') HUD provides the United States Code statutory citation providing for the penalty. In the third column (``Regulatory citation''), HUD provides the Code of Federal Regulations citation under title 24 for the penalty. In the fourth column (``Previous Amount''), HUD provides the amount of the penalty pursuant to the interim rule implementing the ``catch-up'' adjustment (81 FR 38931, June 15, 2016). In the fifth column, (``2017 Adjusted Amount'') HUD lists the penalty after applying the 2017 inflation adjustment. ---------------------------------------------------------------------------------------------------------------- Regulatory Description Statutory citation citation (24 Previous amount 2017 Adjusted CFR) amount ---------------------------------------------------------------------------------------------------------------- False Claims & Statements........ Omnibus Budget Sec. 28.10 $10,781............ $10,957 Reconciliation Act of 1986 (31 U.S.C. 3802(a)(1)). Advance Disclosure of Funding.... Department of Sec. 30.20 $18,936............ $19,246 Housing and Urban Development Act (42 U.S.C. 3537a(c)). Disclosure of Subsidy Layering... Department of Sec. 30.25 $18,936............ $19,246 Housing and Urban Development Act (42 U.S.C. 3545(f)). FHA Mortgagees and Lenders HUD Reform Act of Sec. 30.35 Per Violation: Per Violation: Violations. 1989 (12 U.S.C. $9,468 Per Year: $9,623 Per Year: 1735f-14(a)(2)). $1,893,610. $1,924,589 Other FHA Participants Violations HUD Reform Act of Sec. 30.36 Per Violation: Per Violation: 1989 (12 U.S.C. $9,468 Per Year: $9,623 Per Year: 1735f-14(a)(2)). $1,893,610. $1,924,589 Indian Loan Mortgagees Violations Housing Community Sec. 30.40 Per Violation: Per Violation: Development Act of $9,468 Per Year: $9,623 Per Year: 1992 (12 U.S.C. $1,893,610. $1,924,589 1715z-13a(g)(2)). Multifamily & Section 202 or 811 HUD Reform Act of Sec. 30.45 $47,340............ $48,114 Owners Violations. 1989 (12 U.S.C. 1735f-15(c)(2)). Ginnie Mae Issuers & Custodians HUD Reform Act of Sec. 30.50 Per Violation: Per Violation: Violations. 1989 (12 U.S.C. $9,468 Per Year: $9,623 Per Year: 1723i(b)). $1,893,610. $1,924,589 Title I Broker & Dealers HUD Reform Act of Sec. 30.60 Per Violation: Per Violation: Violations. 1989 (12 U.S.C. $9,468 Per Year: $9,623 Per Year: 1703). $1,893,610. $1,924,589 [[Page 24523]] Lead Disclosure Violation........ Title X-- Sec. 30.65 $16,773............ $17,047 Residential Lead- Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4852d(b)(1)). Section 8 Owners Violations...... Multifamily Sec. 30.68 $36,794............ $37,396 Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437z-1(b)(2)). Lobbying Violation............... The Lobbying Sec. 87.400 Min: $18,936 Max: Min: $19,246 Max: Disclosure Act of $189,361. $192,459 1995 (31 U.S.C. 1352). Fair Housing Act Civil Penalties. Fair Housing Sec. No Priors: $19,787 No Priors: $20,111 Amendments Act of 180.671(a) One Prior: $49,467 One Prior: $50,276 1988 (42 U.S.C. Two or More Two or More 3612(g)(3)). Priors: $98,935. Priors: $100,554 Manufactured Housing Regulations Housing Community Sec. 3282.10 Per Violation: Per Violation: Violation. Development Act of $2,750 Per Year: $2,795 Per Year: 1974 (42 U.S.C. $3,437,500. $3,493,738 5410). ---------------------------------------------------------------------------------------------------------------- III. Justification for Final Rulemaking for the 2017 Adjustments HUD generally publishes regulations for public comment before issuing a rule for effect, in accordance with its own regulations on rulemaking in 24 CFR part 10. However, part 10 provides for exceptions to the general rule if the agency finds good cause to omit advanced notice and public participation. The good cause requirement is satisfied when prior public procedure is ``impractical, unnecessary, or contrary to the public interest'' (see 24 CFR 10.1). As discussed, this final rule adopts without change the amendments offered for public comment in the June 15, 2106, interim final rule. In addition, this rule makes the required 2017 inflation adjustment, which HUD does not have discretion to change. Moreover, the 2015 Act specifies that a delay in the effective date under the Administrative Procedure Act is not required for subsequent annual adjustments under the 2015 Act. HUD has determined, therefore, that it is unnecessary to delay the effectiveness of the 2017 inflation adjustments to solicit prior public comments. As discussed in the preamble to the June 15, 2016, interim final rule, section 7(o) of the Department of Housing and Urban Development Act (42 U.S.C. 3535(o)) requires that any HUD regulation implementing any provision of the Department of Housing and Urban Development Reform Act of 1989 that authorizes the imposition of a civil money penalty may not become effective until after the expiration of a public comment period of not less than 60 days. HUD met this separate 60-day delay requirement for implementing civil money penalties when HUD implemented the new 2015 Act penalty calculation in its June 16, 2016, interim final rule. Moreover, and as noted above, the 2017 inflation adjustments are made in accordance with a statutorily prescribed formula that does not provide for agency discretion. Accordingly, a delay in the effectiveness of the 2017 inflation adjustments in order to provide the public with an opportunity to comment is unnecessary because the 2015 Act exempts the adjustments from the need for delay and, in any event, HUD would not have the discretion to make changes as a result of any comments. IV. Findings and Certifications Regulatory Review--Executive Orders 12866 and 13563 Under Executive Order 12866 (Regulatory Planning and Review), a determination must be made whether a regulatory action is significant and, therefore, subject to review by the Office of Management and Budget (OMB) in accordance with the requirements of the order. Executive Order 13563 (Improving Regulations and Regulatory Review) directs executive agencies to analyze regulations that are ``outmoded, ineffective, insufficient, or excessively burdensome, and to modify, streamline, expand, or repeal them in accordance with what has been learned. Executive Order 13563 also directs that, where relevant, feasible, and consistent with regulatory objectives, and to the extent permitted by law, agencies are to identify and consider regulatory approaches that reduce burdens and maintain flexibility and freedom of choice for the public. As discussed above in this preamble, this final rule adjusts existing civil monetary penalties for inflation by a statutorily required amount. As a result of this review, OMB determined that this rule was not significant under Executive Order 12866 and Executive Order 13563. Regulatory Flexibility Act The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) generally requires an agency to conduct a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements, unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. Because HUD has determined that good cause exists to issue this rule without prior public comment, this rule is not subject to the requirement to publish an initial or final regulatory flexibility analysis under the RFA as part of such action. Unfunded Mandates Reform Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) \4\ requires that an agency prepare a budgetary impact statement before promulgating a rule that includes a Federal mandate that may result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year. If a budgetary impact statement is required, section 205 of UMRA also requires an agency to identity and consider a reasonable number of regulatory alternatives before promulgating a rule.\5\ However, the UMRA applies only to rules for which an agency publishes a general notice of proposed rulemaking. As discussed above, HUD has determined, for good cause, that prior notice and public comment is not required on this rule and, therefore, the UMRA does not apply to this final rule. --------------------------------------------------------------------------- \4\ 2 U.S.C. 1532. \5\ 2 U.S.C. 1534. --------------------------------------------------------------------------- Executive Order 13132, Federalism Executive Order 13132 (entitled ``Federalism'') prohibits an agency from publishing any rule that has federalism implications if the rule either imposes [[Page 24524]] substantial direct compliance costs on State and local governments and is not required by statute, or the rule preempts State law, unless the agency meets the consultation and funding requirements of section 6 of the Executive Order. This rule will not have federalism implications and would not impose substantial direct compliance costs on State and local governments or preempt State law within the meaning of the Executive order. Environmental Review This interim final rule does not direct, provide for assistance or loan and mortgage insurance for, or otherwise govern, or regulate, real property acquisition, disposition, leasing, rehabilitation, alteration, demolition, or new construction, or establish, revise, or provide for standards for construction or construction materials, manufactured housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this final rule is categorically excluded from environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321). List of Subjects 24 CFR Part 28 Administrative practice and procedure, Claims, Fraud, Penalties. 24 CFR Part 30 Administrative practice and procedure, Grant programs--housing and community development, Loan programs--housing and community development, Mortgage insurance, Penalties. 24 CFR Part 87 Government contracts, Grant programs, Loan programs, Lobbying, Penalties, Reporting and recordkeeping requirements. 24 CFR Part 180 Administrative practice and procedure, Aged, Civil rights, Fair housing, Individuals with disabilities, Investigations, Mortgages, Penalties, Reporting and recordkeeping requirements. 24 CFR Part 3282 Administrative practice and procedure, Consumer protection, Intergovernmental relations, Manufactured homes, Reporting and recordkeeping requirements. Accordingly, for the reasons described in the preamble, HUD adopts as final the interim final rule published on June 15, 2016, at 81 FR 38931, and further amends 24 CFR parts 28, 30, 87, 180, and 3282 as follows: PART 28--IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL REMEDIES ACT OF 1986 0 1. The authority citation for part 28 continues to read as follows: Authority: 28 U.S.C. 2461 note; 31 U.S.C. 3801-3812; 42 U.S.C. 3535(d). 0 2. In Sec. 28.10, revise the introductory text of paragraphs (a)(1) and (b)(1), to read as follows: Sec. 28.10 Basis for civil penalties and assessments. (a) * * * (1) A civil penalty of not more than $10,957 may be imposed upon any person who makes, presents, or submits, or causes to be made, presented, or submitted, a claim that the person knows or has reason to know: * * * * * (b) * * * (1) A civil penalty of not more than $10,957 may be imposed upon any person who makes, presents, or submits, or causes to be made, presented, or submitted, a written statement that: * * * * * PART 30--CIVIL MONEY PENALTIES: CERTAIN PROHIBITED CONDUCT 0 3. The authority citation for part 30 continues to read as follows: Authority: 12 U.S.C. 1701q-1, 1703, 1723i, 1735f-14, and 1735f- 15; 15 U.S.C. 1717a; 28 U.S.C. 1 note and 2461 note; 42 U.S.C. 1437z-1 and 3535(d). Sec. 30.5 [Amended] 0 4. In Sec. 30.5, remove paragraph (c) and redesignate paragraphs (d), (e), and (f) as paragraphs (c), (d), and (e), respectively. Sec. 30.10 [Amended] 0 5. In Sec. 30.10, add at the end of the definition of ``Knowing or Knowingly'' the sentence ``For purposes of Sec. Sec. 30.35 and 30.36, knowing or knowingly is defined at 12 U.S.C. 1735f-14(g).'' 0 6. In Sec. 30.20, revise paragraph (b) to read as follows: Sec. 30.20 Ethical violations by HUD employees. * * * * * (b) Maximum penalty. The maximum penalty is $19,246 for each violation. 0 7. In Sec. 30.25, revise paragraph (b) to read as follows: Sec. 30.25 Violations by applicants for assistance. * * * * * (b) Maximum penalty. The maximum penalty is $19,246 for each violation. 0 8. In Sec. 30.35, remove the words ``Sec. Sec. 203.650 through 203.664'' in paragraph (a)(7) and add in their place ``Sec. 203.664''; and revise the first sentence in paragraph (c)(1) to read as follows: Sec. 30.35 Mortgagees and lenders. * * * * * (c)(1) Amount of penalty. The maximum penalty is $9,623 for each violation, up to a limit of $1,924,589 for all violations committed during any one-year period. * * * * * * * * 0 9. In Sec. 30.36, remove the words ``or correspondent'' in paragraph (b)(3) and revise the first sentence in paragraph (c) to read as follows: Sec. 30.36 Other participants in FHA programs. * * * * * (c) Amount of penalty. The maximum penalty is $9,623 for each violation, up to a limit of $1,924,589 for all violations committed during any one-year period. * * * 0 10. In Sec. 30.40, revise the first sentence in paragraph (c) to read as follows: Sec. 30.40 Loan guarantees for Indian housing. * * * * * (c) Amount of penalty. The maximum penalty is $9,623 for each violation, up to a limit of $1,924,589 for all violations committed during any one-year period. * * * 0 11. In Sec. 30.45, revise paragraph (g) to read as follows: Sec. 30.45 Multifamily and section 202 or 811 mortgagors. * * * * * (g) Maximum penalty. The maximum penalty for each violation under paragraphs (c) and (f) of this section is $48,114. * * * * * 0 12. In Sec. 30.50, revise the first sentence in paragraph (c) to read as follows: Sec. 30.50 GNMA issuers and custodians. * * * * * (c) Amount of penalty. The maximum penalty is $9,623 for each violation, up to a limit of $1,924,589 during any one-year period. * * * 0 13. In Sec. 30.60, revise paragraph (c) to read as follows: Sec. 30.60 Dealers or sponsored third-party originators. * * * * * (c) Amount of penalty. The maximum penalty is $9,623 for each violation, up to a limit for any particular person of $1,924,589 during any one-year period. 0 14. In Sec. 30.65, revise paragraph (b) to read as follows: [[Page 24525]] Sec. 30.65 Failure to disclose lead-based paint hazards. * * * * * (b) Amount of penalty. The maximum penalty is $17,047 for each violation. 0 15. In Sec. 30.68, revise paragraph (c) to read as follows: Sec. 30.68 Section 8 owners. * * * * * (c) Maximum penalty. The maximum penalty for each violation under this section is $37,396. * * * * * Sec. 30.80 [Amended] 0 16. In Sec. 30.80, add the word ``and'' after paragraph (h); remove paragraph (i); and redesignate paragraphs (j), (k), and (l) as paragraphs (i), (j), and (k), respectively. PART 87--NEW RESTRICTIONS ON LOBBYING 0 17. The authority citation for part 87 continues to read as follows: Authority: 28 U.S.C. 1 note; 31 U.S.C. 1352; 42 U.S.C. 3535(d). 0 18. In Sec. 87.400, revise paragraphs (a), (b), and (e) to read as follows: Sec. 87.400 Penalties. (a) Any person who makes an expenditure prohibited herein shall be subject to a civil penalty of not less than $19,246 and not more than $192,459 for each such expenditure. (b) Any person who fails to file or amend the disclosure form (see appendix B) to be filed or amended if required herein, shall be subject to a civil penalty of not less than $19,246 and not more than $192,459 for each such failure. * * * * * (e) First offenders under paragraphs (a) or (b) of this section shall be subject to a civil penalty of $19,246, absent aggravating circumstances. Second and subsequent offenses by persons shall be subject to an appropriate civil penalty between $19,246 and $192,459, as determined by the agency head or his or her designee. * * * * * PART 180--CONSOLIDATED HUD HEARING PROCEDURES FOR CIVIL RIGHTS MATTERS 0 19. The authority citation for part 180 continues to read as follows: Authority: 28 U.S.C. 1 note; 29 U.S.C. 794; 42 U.S.C. 2000d-1, 3535(d), 3601-3619, 5301-5320, and 6103. 0 20. In Sec. 180.671, revise paragraphs (a)(1), (2), and (3) to read as follows: Sec. 180.671 Assessing civil penalties for Fair Housing Act cases. (a) * * * (1) $20,111, if the respondent has not been adjudged in any administrative hearing or civil action permitted under the Fair Housing Act or any state or local fair housing law, or in any licensing or regulatory proceeding conducted by a federal, state, or local governmental agency, to have committed any prior discriminatory housing practice. (2) $50,276, if the respondent has been adjudged in any administrative hearing or civil action permitted under the Fair Housing Act, or under any state or local fair housing law, or in any licensing or regulatory proceeding conducted by a federal, state, or local government agency, to have committed one other discriminatory housing practice and the adjudication was made during the 5-year period preceding the date of filing of the charge. (3) $100,554, if the respondent has been adjudged in any administrative hearings or civil actions permitted under the Fair Housing Act, or under any state or local fair housing law, or in any licensing or regulatory proceeding conducted by a federal, state, or local government agency, to have committed two or more discriminatory housing practices and the adjudications were made during the 7-year period preceding the date of filing of the charge. * * * * * PART 3282--MANUFACTURED HOME PROCEDURAL AND ENFORCEMENT REGULATIONS 0 21. The authority citation for part 3282 continues to read as follows: Authority: 28 U.S.C. 1 note; 28 U.S.C. 2461 note; 42 U.S.C. 3535(d) and 5424. 0 22. Revise Sec. 3282.10 to read as follows: Sec. 3282.10 Civil and criminal penalties. Failure to comply with these regulations may subject the party in question to the civil and criminal penalties provided for in section 611 of the Act, 42 U.S.C. 5410. The maximum amount of penalties imposed under section 611 of the Act shall be $2,795 for each violation, up to a maximum of $3,493,738 for any related series of violations occurring within one year from the date of the first violation. Dated: May 22, 2017. Bethany A. Zorc, Principal Deputy General Counsel. [FR Doc. 2017-11056 Filed 5-26-17; 8:45 am] BILLING CODE 4210-67-P
![Federal Register / Vol. 82, No. 102 / Tuesday, May 30, 2017 / Rules and Regulations 24521
Question 2: State whether you information that leads to the successful final rule applied a new methodology to
provided the information that you enforcement of such laws; (4) whether calculate civil money penalties as
submitted to the CFTC pursuant to a the award otherwise enhances the mandated by the Federal Civil Penalties
cooperation agreement with the CFTC, CFTC’s ability to enforce the Inflation Adjustment Act Improvements
or with any other agency or Commodity Exchange Act, protect Act of 2015, starting with a ‘‘catch up’’
organization. customers, and encourage the adjustment to correct previous
Question 3: State whether you submission of high quality information inaccuracies; removed three obsolete
provided this information before you (or from whistleblowers; and (5) potential civil monetary penalty provisions; and
anyone representing you) received any adverse incentives from oversize made a technical change to the existing
request, inquiry or demand that relates awards. Address these factors in your codified regulation implementing the
to the subject matter of your submission response as well. Program Fraud Civil Remedies Act. The
(i) from the CFTC, (ii) in connection changes from the interim final rule
with an investigation, inspection or Section H: Claimant’s Declaration made final by this final rule continue to
examination by any registered entity, You must sign this Declaration if you be effective as of August 16, 2016.
registered futures association or self- are submitting this claim pursuant to In addition, this rule provides for
regulatory organization, or (iii) in the CFTC whistleblower program and 2017 inflation adjustments of civil
connection with an investigation by the wish to be considered for an award. If monetary penalty amounts required by
Congress, or any other federal or state you are submitting your claim the Federal Civil Penalties Inflation
authority. anonymously, you must do so through Adjustment Act Improvements Act of
Question 4: State whether you are an attorney, and you must provide your 2015, and makes three technical
currently a subject or target of a criminal attorney with your original signed Form amendments and a conforming statutory
investigation, or whether you have been WB–APP. change.
convicted of a criminal violation, in DATES: Effective date: June 29, 2017.
connection with the information that Section I: Counsel Certification Applicability date: The applicability
you submitted to the CFTC and upon If you are submitting this claim date for catch-up adjustment was
which your application for an award is pursuant to the CFTC whistleblower August 16, 2016.
based. program anonymously, you must do so FOR FURTHER INFORMATION CONTACT:
Question 5: State whether you through an attorney, and your attorney Dane Narode, Associate General
acquired the information that you must sign the Counsel Certification Counsel, Office of Program
provided to the CFTC from any Section. Enforcement, Department of Housing
individual described in Questions 1 and Urban Development, 1250
through 4 of this section. Issued in Washington, DC, on May 22, Maryland Avenue SW., Suite 200,
Question 6: If you answered yes to 2017, by the Commission.
Washington, DC 20024; telephone
any of Questions 1 through 5 of this Christopher J. Kirkpatrick, number 202–245–4141 (this is not a toll-
section, please provide details. Secretary of the Commission. free number). Hearing- or speech-
Section G: Entitlement to Award impaired individuals may access this
Note: The following appendix will not
appear in the Code of Federal Regulations. number via TTY by calling the Federal
This section is optional. Use this
Information Relay Service, toll-free, at
section to explain the basis for your
Appendix to Whistleblower Awards 800–877–8339.
belief that you are entitled to an award
in connection with your submission of Process—Commission Voting Summary SUPPLEMENTARY INFORMATION:
information to the CFTC, or to another On this matter, Acting Chairman Giancarlo I. Background
agency in connection with a related and Commissioner Bowen voted in the
action. Specifically, address why you affirmative. No Commissioner voted in the A. The June 15, 2016, Interim Rule
believe that you voluntarily provided negative. The Federal Civil Penalties Inflation
the CFTC with original information that [FR Doc. 2017–10801 Filed 5–26–17; 8:45 am] Adjustment Act Improvements Act of
led to the successful enforcement of a BILLING CODE 6351–01–P 2015 (2015 Act) (Pub. L. 114–74)
judicial or administrative action filed by amended the Federal Civil Penalties
the CFTC, or a related action. Refer to Inflation Adjustment Act of 1990 (28
§ 165.9 of the CFTC’s regulations for DEPARTMENT OF HOUSING AND U.S.C. 2461 note) requiring all Federal
further information concerning the URBAN DEVELOPMENT agencies to issue an interim final rule
relevant award criteria. implementing changes to their civil
Section 23(c)(1)(B) of the Commodity 24 CFR Parts 28, 30, 87, 180, and 3282 money penalties. On June 15, 2016,
Exchange Act and § 165.9(a) of the [Docket No. FR–5942–F–02] pursuant to the requirements of the
CFTC’s regulations require the CFTC to 2015 Act, HUD published an interim
consider the following factors in RIN 2501–AD79 final rule for public comment, entitled
determining the amount of an award: (1) ‘‘Inflation Catch-Up Adjustment of Civil
Inflation Catch-Up Adjustment of Civil
The significance of the information Monetary Penalty Amounts’’ (81 FR
Monetary Penalty Amounts Final Rule
provided by a whistleblower to the 38931). The 2015 Act required agencies
and Adjustment of Civil Monetary
success of the CFTC action or related to make an initial catch-up adjustment
Penalty Amounts for 2017
action; (2) the degree of assistance by interim final rule, using a new
provided by the whistleblower and any AGENCY: Office of the General Counsel, methodology designed to correct
sradovich on DSK3GMQ082PROD with RULES
legal representative of the whistleblower HUD. inaccuracies in the previous method of
in the CFTC action or related action; (3) ACTION: Final rule. computing inflation adjustments. In
the programmatic interest of the CFTC order to address these inaccuracies, the
in deterring violations of the SUMMARY: This rule makes final the 2015 Act excluded adjustments made
Commodity Exchange Act (including interim final rule, published on June 15, under the law prior to its amendment,
regulations under the Act) by making 2016, to amend HUD’s civil monetary and it provided that the initial catch-up
awards to whistleblowers who provide penalty (CMP) regulations. The interim adjustment was the percentage by which
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![24524 Federal Register / Vol. 82, No. 102 / Tuesday, May 30, 2017 / Rules and Regulations
substantial direct compliance costs on PART 28—IMPLEMENTATION OF THE paragraph (a)(7) and add in their place
State and local governments and is not PROGRAM FRAUD CIVIL REMEDIES ‘‘§ 203.664’’; and revise the first
required by statute, or the rule preempts ACT OF 1986 sentence in paragraph (c)(1) to read as
State law, unless the agency meets the follows:
consultation and funding requirements ■ 1. The authority citation for part 28
of section 6 of the Executive Order. This continues to read as follows: § 30.35 Mortgagees and lenders.
rule will not have federalism Authority: 28 U.S.C. 2461 note; 31 U.S.C. * * * * *
implications and would not impose 3801–3812; 42 U.S.C. 3535(d). (c)(1) Amount of penalty. The
substantial direct compliance costs on maximum penalty is $9,623 for each
■ 2. In § 28.10, revise the introductory
State and local governments or preempt violation, up to a limit of $1,924,589 for
text of paragraphs (a)(1) and (b)(1), to
State law within the meaning of the all violations committed during any
read as follows:
Executive order. one-year period. * * *
§ 28.10 Basis for civil penalties and * * * * *
Environmental Review assessments. ■ 9. In § 30.36, remove the words ‘‘or
This interim final rule does not direct, (a) * * * correspondent’’ in paragraph (b)(3) and
provide for assistance or loan and (1) A civil penalty of not more than revise the first sentence in paragraph (c)
mortgage insurance for, or otherwise $10,957 may be imposed upon any to read as follows:
govern, or regulate, real property person who makes, presents, or submits,
acquisition, disposition, leasing, or causes to be made, presented, or § 30.36 Other participants in FHA
rehabilitation, alteration, demolition, or submitted, a claim that the person programs.
new construction, or establish, revise, or knows or has reason to know: * * * * *
provide for standards for construction or * * * * * (c) Amount of penalty. The maximum
construction materials, manufactured (b) * * * penalty is $9,623 for each violation, up
housing, or occupancy. Accordingly, (1) A civil penalty of not more than to a limit of $1,924,589 for all violations
under 24 CFR 50.19(c)(1), this final rule $10,957 may be imposed upon any committed during any one-year period.
is categorically excluded from person who makes, presents, or submits, * * *
environmental review under the or causes to be made, presented, or ■ 10. In § 30.40, revise the first sentence
National Environmental Policy Act of submitted, a written statement that: in paragraph (c) to read as follows:
1969 (42 U.S.C. 4321). * * * * * § 30.40 Loan guarantees for Indian
List of Subjects housing.
PART 30—CIVIL MONEY PENALTIES:
24 CFR Part 28 CERTAIN PROHIBITED CONDUCT * * * * *
Administrative practice and (c) Amount of penalty. The maximum
procedure, Claims, Fraud, Penalties. ■ 3. The authority citation for part 30 penalty is $9,623 for each violation, up
continues to read as follows: to a limit of $1,924,589 for all violations
24 CFR Part 30 committed during any one-year period.
Authority: 12 U.S.C. 1701q–1, 1703, 1723i,
Administrative practice and 1735f–14, and 1735f–15; 15 U.S.C. 1717a; 28 * * *
procedure, Grant programs—housing U.S.C. 1 note and 2461 note; 42 U.S.C. ■ 11. In § 30.45, revise paragraph (g) to
and community development, Loan 1437z–1 and 3535(d). read as follows:
programs—housing and community
§ 30.5 [Amended] § 30.45 Multifamily and section 202 or 811
development, Mortgage insurance, mortgagors.
Penalties. ■ 4. In § 30.5, remove paragraph (c) and
redesignate paragraphs (d), (e), and (f) as * * * * *
24 CFR Part 87 paragraphs (c), (d), and (e), respectively. (g) Maximum penalty. The maximum
Government contracts, Grant penalty for each violation under
programs, Loan programs, Lobbying, § 30.10 [Amended] paragraphs (c) and (f) of this section is
Penalties, Reporting and recordkeeping ■ 5. In § 30.10, add at the end of the $48,114.
requirements. definition of ‘‘Knowing or Knowingly’’ * * * * *
the sentence ‘‘For purposes of §§ 30.35 ■ 12. In § 30.50, revise the first sentence
24 CFR Part 180
and 30.36, knowing or knowingly is in paragraph (c) to read as follows:
Administrative practice and defined at 12 U.S.C. 1735f–14(g).’’
procedure, Aged, Civil rights, Fair § 30.50 GNMA issuers and custodians.
■ 6. In § 30.20, revise paragraph (b) to
housing, Individuals with disabilities, read as follows: * * * * *
Investigations, Mortgages, Penalties, (c) Amount of penalty. The maximum
Reporting and recordkeeping § 30.20 Ethical violations by HUD penalty is $9,623 for each violation, up
requirements. employees. to a limit of $1,924,589 during any one-
* * * * * year period. * * *
24 CFR Part 3282
(b) Maximum penalty. The maximum ■ 13. In § 30.60, revise paragraph (c) to
Administrative practice and penalty is $19,246 for each violation. read as follows:
procedure, Consumer protection, ■ 7. In § 30.25, revise paragraph (b) to
Intergovernmental relations, read as follows: § 30.60 Dealers or sponsored third-party
Manufactured homes, Reporting and originators.
sradovich on DSK3GMQ082PROD with RULES
recordkeeping requirements. § 30.25 Violations by applicants for * * * * *
Accordingly, for the reasons described assistance. (c) Amount of penalty. The maximum
in the preamble, HUD adopts as final * * * * * penalty is $9,623 for each violation, up
the interim final rule published on June (b) Maximum penalty. The maximum to a limit for any particular person of
15, 2016, at 81 FR 38931, and further penalty is $19,246 for each violation. $1,924,589 during any one-year period.
amends 24 CFR parts 28, 30, 87, 180, ■ 8. In § 30.35, remove the words ■ 14. In § 30.65, revise paragraph (b) to
and 3282 as follows: ‘‘§§ 203.650 through 203.664’’ in read as follows:
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![Federal Register / Vol. 82, No. 102 / Tuesday, May 30, 2017 / Rules and Regulations 24525
§ 30.65 Failure to disclose lead-based § 180.671 Assessing civil penalties for Fair DEPARTMENT OF HOMELAND
paint hazards. Housing Act cases. SECURITY
* * * * * (a) * * *
(b) Amount of penalty. The maximum (1) $20,111, if the respondent has not Coast Guard
penalty is $17,047 for each violation. been adjudged in any administrative
■ 15. In § 30.68, revise paragraph (c) to hearing or civil action permitted under 33 CFR Part 165
read as follows: the Fair Housing Act or any state or
[Docket Number USCG–2017–0408]
local fair housing law, or in any
§ 30.68 Section 8 owners. licensing or regulatory proceeding RIN 1625–AA00
* * * * * conducted by a federal, state, or local
(c) Maximum penalty. The maximum governmental agency, to have Safety Zone; Buffalo Carnival; Buffalo
penalty for each violation under this committed any prior discriminatory Outer Harbor, Buffalo, NY
section is $37,396. housing practice. AGENCY: Coast Guard, DHS.
* * * * * (2) $50,276, if the respondent has
ACTION: Temporary final rule.
been adjudged in any administrative
§ 30.80 [Amended] hearing or civil action permitted under SUMMARY: The Coast Guard is
■ 16. In § 30.80, add the word ‘‘and’’ the Fair Housing Act, or under any state establishing a temporary safety zone on
after paragraph (h); remove paragraph or local fair housing law, or in any Lake Erie, Buffalo Outer Harbor, Buffalo,
(i); and redesignate paragraphs (j), (k), licensing or regulatory proceeding NY. This safety zone is intended to
and (l) as paragraphs (i), (j), and (k), conducted by a federal, state, or local restrict vessels from a portion of the
respectively. government agency, to have committed Outer Harbor during the May 28, 2017
one other discriminatory housing fireworks display. This temporary safety
PART 87—NEW RESTRICTIONS ON practice and the adjudication was made zone is necessary to protect mariners
LOBBYING during the 5-year period preceding the and vessels from the navigational
date of filing of the charge. hazards associated with a fireworks
■ 17. The authority citation for part 87 (3) $100,554, if the respondent has display.
continues to read as follows: been adjudged in any administrative
DATES: This rule is effective from 8:45
Authority: 28 U.S.C. 1 note; 31 U.S.C. hearings or civil actions permitted
p.m. until 9:45 p.m. on May 28, 2017.
1352; 42 U.S.C. 3535(d). under the Fair Housing Act, or under
any state or local fair housing law, or in ADDRESSES: To view documents
■ 18. In § 87.400, revise paragraphs (a), mentioned in this preamble as being
(b), and (e) to read as follows: any licensing or regulatory proceeding
conducted by a federal, state, or local available in the docket, go to http://
§ 87.400 Penalties. government agency, to have committed www.regulations.gov, type USCG–2017–
two or more discriminatory housing 0408 in the ‘‘SEARCH’’ box and click
(a) Any person who makes an ‘‘SEARCH.’’ Click on Open Docket
expenditure prohibited herein shall be practices and the adjudications were
made during the 7-year period Folder on the line associated with this
subject to a civil penalty of not less than rule.
$19,246 and not more than $192,459 for preceding the date of filing of the
charge. FOR FURTHER INFORMATION CONTACT: If
each such expenditure.
(b) Any person who fails to file or * * * * * you have questions on this rule, call or
amend the disclosure form (see email LT Michael Collet, Chief of
appendix B) to be filed or amended if PART 3282—MANUFACTURED HOME Waterways Management, U.S. Coast
required herein, shall be subject to a PROCEDURAL AND ENFORCEMENT Guard Sector Buffalo; telephone 716–
civil penalty of not less than $19,246 REGULATIONS 843–9322, email
and not more than $192,459 for each SectorBuffaloMarineSafety@uscg.mil.
■ 21. The authority citation for part SUPPLEMENTARY INFORMATION:
such failure.
3282 continues to read as follows:
* * * * * I. Table of Abbreviations
(e) First offenders under paragraphs Authority: 28 U.S.C. 1 note; 28 U.S.C. 2461
note; 42 U.S.C. 3535(d) and 5424. CFR Code of Federal Regulations
(a) or (b) of this section shall be subject
to a civil penalty of $19,246, absent ■ 22. Revise § 3282.10 to read as DHS Department of Homeland Security
aggravating circumstances. Second and follows: FR Federal Register
NPRM Notice of proposed rulemaking
subsequent offenses by persons shall be § 3282.10 Civil and criminal penalties. § Section
subject to an appropriate civil penalty U.S.C. United States Code
between $19,246 and $192,459, as Failure to comply with these
determined by the agency head or his or regulations may subject the party in II. Background Information and
her designee. question to the civil and criminal Regulatory History
penalties provided for in section 611 of
* * * * * the Act, 42 U.S.C. 5410. The maximum The Coast Guard is issuing this
amount of penalties imposed under temporary rule without prior notice and
PART 180—CONSOLIDATED HUD opportunity to comment pursuant to
HEARING PROCEDURES FOR CIVIL section 611 of the Act shall be $2,795
for each violation, up to a maximum of authority under section 4(a) of the
RIGHTS MATTERS Administrative Procedure Act (APA) (5
$3,493,738 for any related series of
violations occurring within one year U.S.C. 553(b)). This provision
19. The authority citation for part 180
sradovich on DSK3GMQ082PROD with RULES
■
from the date of the first violation. authorizes an agency to issue a rule
continues to read as follows:
without prior notice and opportunity to
Authority: 28 U.S.C. 1 note; 29 U.S.C. 794; Dated: May 22, 2017. comment when the agency for good
42 U.S.C. 2000d–1, 3535(d), 3601–3619, Bethany A. Zorc, cause finds that those procedures are
5301–5320, and 6103. Principal Deputy General Counsel. ‘‘impracticable, unnecessary, or contrary
■ 20. In § 180.671, revise paragraphs [FR Doc. 2017–11056 Filed 5–26–17; 8:45 am] to the public interest.’’ Under 5 U.S.C.
(a)(1), (2), and (3) to read as follows: BILLING CODE 4210–67–P 553(b)(B), the Coast Guard finds that
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Document Created: 2018-11-08 08:54:48
Document Modified: 2018-11-08 08:54:48
| 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 rule. | |
| Dates | Effective date: June 29, 2017. | |
| Contact | Dane Narode, Associate General Counsel, Office of Program Enforcement, Department of Housing and Urban Development, 1250 Maryland Avenue SW., Suite 200, Washington, DC 20024; telephone number 202-245-4141 (this is not a toll-free number). Hearing- or speech-impaired individuals may access this number via TTY by calling the Federal Information Relay Service, toll-free, at 800- 877-8339. | |
| FR Citation | 82 FR 24521 | |
| RIN Number | 2501-AD79 | |
| CFR Citation | 24
CFR
180 24 CFR 28 24 CFR 30 24 CFR 3282 24 CFR 87 | |
| CFR Associated | Aged; Civil Rights; Fair Housing; Individuals with Disabilities; Investigations; Mortgages; Administrative Practice and Procedure; Claims; Fraud; Penalties; Consumer Protection; Intergovernmental Relations; Manufactured Homes; Grant Programs-Housing and Community Development; Loan Programs-Housing and Community Development; Mortgage Insurance; Government Contracts; Grant Programs; Loan Programs; Lobbying and Reporting and Recordkeeping Requirements |
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