82_FR_27545 82 FR 27431 - Implementing the Federal Civil Penalties Adjustment Act Improvements Act of 2015

82 FR 27431 - Implementing the Federal Civil Penalties Adjustment Act Improvements Act of 2015

NATIONAL FOUNDATION FOR THE ARTS AND HUMANITIES
National Endowment for the Arts

Federal Register Volume 82, Issue 114 (June 15, 2017)

Page Range27431-27434
FR Document2017-12071

The National Endowment for the Arts (NEA) is adjusting the maximum civil monetary penalties that may be imposed for violations of the Program Fraud and Civil Remedies Act (PFCRA) and the NEA's Restrictions on Lobbying to reflect the requirements of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 Act). The 2015 Act further amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (the Inflation Adjustment Act) to improve the effectiveness of civil monetary penalties and to maintain their deterrent effect.

Federal Register, Volume 82 Issue 114 (Thursday, June 15, 2017)
[Federal Register Volume 82, Number 114 (Thursday, June 15, 2017)]
[Rules and Regulations]
[Pages 27431-27434]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-12071]


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NATIONAL FOUNDATION FOR THE ARTS AND HUMANITIES

National Endowment for the Arts

45 CFR Parts 1149 and 1158

RIN 3135-AA33


Implementing the Federal Civil Penalties Adjustment Act 
Improvements Act of 2015

AGENCY: National Endowment for the Arts, National Foundation for the 
Arts and Humanities.

ACTION: Interim final rule; request for comments.

-----------------------------------------------------------------------

SUMMARY: The National Endowment for the Arts (NEA) is adjusting the 
maximum civil monetary penalties that may be imposed for violations of 
the Program Fraud and Civil Remedies Act (PFCRA) and the NEA's 
Restrictions on Lobbying to reflect the requirements of the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 
2015 Act). The 2015 Act further amended the Federal Civil Penalties 
Inflation Adjustment Act of 1990 (the Inflation Adjustment Act) to 
improve the effectiveness of civil monetary penalties and to maintain 
their deterrent effect.

DATES: 
    Effective date: This rule is effective June 15, 2017.
    Comments date: Submit comments on or before July 17, 2017.

ADDRESSES: You may submit comments, identified by RIN 3135-AA33, by any 
of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: generalcounsel@arts.gov. Include RIN 3135-AA33 in 
the subject line of the message.
     Mail: National Endowment for the Arts, Office of the 
General Counsel, 400 7th Street SW., Second Floor, Washington, DC 
20506.
     Hand Delivery/Courier: National Endowment for the Arts, 
Office of the General Counsel, 400 7th Street SW., Second Floor, 
Washington, DC 20506.
    Instructions: All submissions received must include the agency name 
and docket number or Regulatory

[[Page 27432]]

Information Number (3135-AA27) for this rulemaking.
    Docket: For access to the docket to read background documents or 
comments received, go to 400 7th Street SW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Aswathi Zachariah, Assistant General 
Counsel, National Endowment for the Arts, 400 7th St. SW., Washington, 
DC 20506, Telephone: 202-682-5418.

SUPPLEMENTARY INFORMATION: 

1. Background

    The 2015 Act requires agencies to: (1) Adjust the level of civil 
monetary penalties with an initial ``catch-up'' adjustment through an 
interim final rulemaking; and (2) make subsequent annual adjustments 
for inflation. Inflation adjustments will be based on the percent 
change in the Consumer Price Index for all Urban Consumers (CPI-U) for 
the month of October preceding the date of the adjustment, relative to 
the October CPI-U in the year of the previous adjustment.
    The Office of Management and Budget has issued two memoranda, 
providing guidance on implementing and calculating adjustments.\1\
---------------------------------------------------------------------------

    \1\ OMB Memoranda M-16-06 and M-17-11.
---------------------------------------------------------------------------

    The NEA has identified two civil penalties in its regulations that 
require adjustment: (1) The penalty associated with Restrictions on 
Lobbying (45 CFR 1158.400; 45 CFR part 1158, app. A) and (2) the 
penalty associated with the Program Fraud Civil Remedies Act (45 CFR 
1149.9).

2. Method of Calculation

    For the first adjustment made in accordance with the 2015 Act, the 
amount of the adjustment is calculated based on the percent change 
between the CPI-U for October of the last year in which penalties were 
previously adjusted (not including any adjustment made pursuant to the 
Inflation Adjustment Act before November 2, 2015), and the CPI-U for 
October 2015. The 10 percent cap on adjustments imposed by the Debt 
Collection Improvement Act of 1996 has been eliminated by the 2015 Act. 
Instead, the 2015 Act imposes a cap on the amount of this initial 
adjustment, such that the amount of the increase may not exceed 150 
percent of the pre-adjustment penalty amount or range. As a result, the 
total penalty amount or range after the initial adjustment under the 
2015 Act may not exceed 250 percent of the pre-adjustment penalty 
amount or range.
    The 2015 Act also requires agencies to make annual adjustments to 
civil penalty amounts no later than January 15 of each year following 
the initial adjustment described above. For annual adjustments made in 
accordance with the 2015 Act, the amount of the adjustment is based on 
the percent increase between the CPI-U for the month of October 
preceding the date of the adjustment and the CPI-U for the October one 
year prior to the October immediately preceding the date of the 
adjustment. If there is no increase, there is no adjustment of civil 
penalties.
    This interim final rule incorporates the initial adjustment and one 
annual adjustment, and applies those adjustments cumulatively to each 
of the two civil regulatory penalties identified herein.

A. Adjustments to Penalties Under the NEA's Program Fraud and Civil 
Remedies Act Regulations

    For purposes of the initial adjustment under the 2015 Act, Congress 
last set or adjusted the amount of PFCRA civil penalties in 1986. 
Between October 1986 and October 2015, the CPI-U has increased by 
215.628 percent. The post-adjustment penalty amount or range is 
obtained by multiplying the pre-adjustment penalty amount or range by 
the percent change in the CPI-U over the relevant time period, and 
rounding to the nearest dollar. Therefore, this post-adjustment maximum 
penalty under the PFCRA is $5,000 x 2.15628 = $10,781.40, which rounds 
to $10,781. The new, post-adjustment penalty less than 250 percent of 
the pre-adjustment penalty, so the limitation on the amount of the 
adjustment is not implicated. Therefore, the maximum penalty under the 
PFCRA for false claims or statements for purposes of the first 
adjustment will be $10,781.
    This regulation also incorporates the subsequent required annual 
adjustment. The post-adjustment penalty or range is obtained by 
multiplying the pre-adjustment penalty or range by the percent change 
in the CPI-U over the relevant time period and rounding to the nearest 
dollar. Between October 2015 and October 2016, the CPI-U increased by 
101.636 percent. Therefore, the new post-adjustment maximum penalty 
under the PFCRA is $10,781 x 1.01636 = $10,957.38, which rounds to 
$10,957. The new, post-adjustment penalty is less than 250 percent of 
the pre-adjustment penalty, so the limitation on the amount of the 
adjustment is not implicated. Therefore, the maximum penalty under the 
PFCRA will be $10,957.

B. Adjustments to Penalties Under the NEA's Restrictions on Lobbying 
Regulations

    For purposes of the initial adjustment under the 2015 Act, Congress 
last set or adjusted the amount of Restrictions on Lobbying civil 
penalties in 1989. Between October 1989 and October 2015, the CPI-U has 
increased by 189.361 percent. The post-adjustment penalty amount or 
range is obtained by multiplying the pre-adjustment penalty amount or 
range by the percent change in the CPI-U over the relevant time period, 
and rounding to the nearest dollar. Therefore, the post-adjustment 
minimum penalty under the law on Restrictions on Lobbying is $10,000 x 
1.89361 = $18,936.10, which rounds to $18,936, and the post-adjustment 
maximum penalty under law on Restrictions on Lobbying is $100,000 x 
1.89361 = $189,361. The new, post-adjustment penalties are less than 
250 percent of the pre-adjustment penalties, so the limitation on the 
amount of the adjustment is not implicated. Therefore, the range of 
penalties under the law on Restrictions on Lobbying, for purposes of 
the first adjustment shall be between $18,936 and $189,361.
    This regulation also incorporates the subsequent required annual 
adjustment. The post-adjustment penalty or range is obtained by 
multiplying the pre-adjustment penalty or range by the percent change 
in the CPI-U over the relevant time period and rounding to the nearest 
dollar. Between October 2015 and October 2016, the CPI-U increased by 
101.636 percent. Therefore, the post-adjustment minimum penalty under 
the law on Restrictions on Lobbying is $18,936 x 1.01636 = $19,245.79, 
which rounds to $19,246, and the post-adjustment maximum penalty under 
law on Restrictions on Lobbying is $189,361 x 1.01636 = $192,458.95, 
which rounds to $192,459. The new, post-adjustment penalties are less 
than 250 percent of the pre-adjustment penalties, so the limitation on 
the amount of the adjustment is not implicated. Therefore, the range of 
penalties under the law on Restrictions on Lobbying, for purposes of 
the first adjustment shall be between $19,246 and $192,459.

3. Subsequent Annual Adjustments

    The 2015 Act also requires agencies to make annual adjustments to 
civil penalty amounts no later than January 15 of each year following 
the initial adjustment described above. For subsequent annual 
adjustments made in accordance with the 2015 Act, the amount of the 
adjustment will have the

[[Page 27433]]

same basis as the annual adjustments previously described herein (the 
percent increase between the CPI-U for the month of October preceding 
the date of the adjustment and the CPI-U for the October one year prior 
to the October immediately preceding the date of the adjustment). If 
there is no increase, there is no adjustment of civil penalties. 
Therefore, if the NEA adjusts penalties in January 2018, the adjustment 
will be calculated based on the percent change between the CPI-U for 
October 2017 (the October immediately preceding the date of adjustment) 
and October 2016 (the October one year prior to October 2017). The NEA 
will publish the amount of these annual inflation adjustments in the 
Federal Register no later than January 15 of each year.

4. Compliance

Regulatory Planning and Review (Executive Order 12866)

    Executive Order 12866 (E.O. 12866) established a process for review 
of rules by the Office of Information and Regulatory Affairs, which is 
within the Office of Management and Budget (OMB). Only ``significant'' 
proposed and final rules are subject to review under this Executive 
Order. ``Significant,'' as used in E.O. 12866, means ``economically 
significant.'' It refers to rules with (1) an impact on the economy of 
$100 million; or that (2) were inconsistent or interfered with an 
action taken or planned by another agency; (3) materially altered the 
budgetary impact of entitlements, grants, user fees, or loan programs; 
or (4) raised novel legal or policy issues.
    This interim final rule would not be a significant policy change 
and OMB has not reviewed this interim final rule under E.O. 12866. We 
have made the assessments required by E.O. 12866 and determined that 
this rulemaking: (1) Will not have an effect of $100 million or more on 
the economy; (2) will not adversely affect in a material way the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or Tribal governments or 
communities; (3) will not create a serious inconsistency or otherwise 
interfere with an action taken or planned by another agency; (4) does 
not alter the budgetary effects of entitlements, grants, user fees, or 
loan programs or the rights or obligations of their recipients; and (5) 
does not raise novel legal or policy issues.

Federalism (Executive Order 13132)

    This rulemaking does not have Federalism implications, as set forth 
in E.O. 13132. As used in this order, Federalism implications mean 
``substantial direct effects on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government.'' The NEA 
has determined that this rulemaking will not have Federalism 
implications within the meaning of E.O. 13132.

Civil Justice Reform (Executive Order 12988)

    This Directive meets the applicable standards set forth in section 
3(a) and 3(b)(2) of E.O. 12988. Specifically, this interim final rule 
is written in clear language designed to help reduce litigation.

Indian Tribal Governments (Executive Order 13175)

    Under the criteria in E.O. 13175, we have evaluated this interim 
final rule and determined that it would have no potential effects on 
Federally recognized Indian Tribes.

Takings (Executive Order 12630)

    Under the criteria in E.O. 12630, this rulemaking does not have 
significant takings implications. Therefore, a takings implication 
assessment is not required.

Regulatory Flexibility Act of 1980 (5 U.S.C. 605(b))

    This rulemaking will not have a significant adverse impact on a 
substantial number of small entities, including small businesses, small 
governmental jurisdictions, or certain small not-for-profit 
organizations.

Paperwork Reduction Act of 1995 (44 U.S.C., Chapter 35)

    This rulemaking will not impose any ``information collection'' 
requirements under the Paperwork Reduction Act. Under the act, 
information collection means the obtaining or disclosure of facts or 
opinions by or for an agency by 10 or more nonfederal persons.

Unfunded Mandates Act of 1995 (Section 202, Pub. L. 104-4)

    This rulemaking does not contain a Federal mandate that will 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.

National Environmental Policy Act of 1969 (5 U.S.C. 804)

    The interim final rule will not have significant effect on the 
human environment.

Small Business Regulatory Enforcement Fairness Act of 1996 (Sec. 804, 
Pub. L. 104-121)

    This interim final rule would not be a major rule as defined in 
section 804 of the Small Business Regulatory Enforcement Fairness Act 
of 1996. This interim final rule will not result in an annual effect on 
the economy of $100,000,000 or more, a major increase in costs or 
prices, significant adverse effects on competition, employment, 
investment, productivity, innovation, or on the ability of United 
States-based companies to compete with foreign based companies in 
domestic and export markets.

E-Government Act of 2002 (44 U.S.C. 3504)

    Section 206 of the E-Government Act requires agencies, to the 
extent practicable, to ensure that all information about that agency 
required to be published in the Federal Register is also published on a 
publicly accessible Web site. All information about the NEA required to 
be published in the Federal Register may be accessed at www.arts.gov. 
This Act also requires agencies to accept public comments on their 
rules ``by electronic means.'' See heading ``Public Participation'' for 
directions on electronic submission of public comments on this interim 
final rule.
    Finally, the E-Government Act requires, to the extent practicable, 
that agencies ensure that a publicly accessible Federal Government Web 
site contains electronic dockets for rulemakings under the 
Administrative Procedure Act of 1946 (5 U.S.C. 551 et seq.). Under this 
Act, an electronic docket consists of all submissions under section 
553(c) of title 5, United States Code; and all other materials that by 
agency rule or practice are included in the rulemaking docket under 
section 553(c) of title 5, United States Code, whether or not submitted 
electronically. The Web site https://www.regulations.gov contains 
electronic dockets for the NEA's rulemakings under the Administrative 
Procedure Act of 1946.

Plain Writing Act of 2010 (5 U.S.C. 301)

    Under this Act, the term ``plain writing'' means writing that is 
clear, concise, well-organized, and follows other best practices 
appropriate to the subject or field and intended audience. To ensure 
that this rulemaking has been written in plain and clear language so 
that it can be used and understood by the public, the NEA has modeled 
the

[[Page 27434]]

language of this rule on the Federal Plain Language Guidelines.

Public Participation

    The NEA has written this interim final rule in compliance with E.O. 
13563 by ensuring its accessibility, consistency, simplicity of 
language, and overall comprehensibility. In addition, the public 
participation goals of this order are also satisfied by the NEA's 
participation in a process in which its views and information are made 
public to the extent feasible, and before any decisions are actually 
made. This will allow the public the opportunity to react to the 
comments, arguments, and information of others during the rulemaking 
process. The NEA initiates its participation in an open exchange by 
posting the regulation and its rulemaking docket on https://www.regulations.gov.
    Finally, Section 2 of E.O. 13563 directs agencies, where feasible 
and appropriate, to seek the views of those who are likely to be 
affected by rulemaking. This provision emphasizes the importance of 
prior consultation with ``those who are likely to benefit from and 
those who are potentially subject to such rulemaking.'' One goal is to 
solicit ideas about alternatives, relevant costs and benefits (both 
quantitative and qualitative), and potential flexibilities. The NEA 
reaches out to interested and affected parties by soliciting comments.

List of Subjects in 45 CFR Parts 1149 and 1158

    Administrative practice and procedure, Government contracts, Grant 
programs, Loan programs, Lobbying, Penalties.

    For the reasons stated in the preamble, the NEA amends 45 CFR parts 
1149 and 1158 as follows:

PART 1149--PROGRAM FRAUD CIVIL REMEDIES ACT REGULATIONS

0
1. The authority citation for part 1149 is revised to read as follows:

    Authority:  5 U.S.C. App. 8G(a)(2); 20 U.S.C. 959; 28 U.S.C. 
2461 note; 31 U.S.C. 3801-3812.


Sec.  1149.9   [Amended]

0
2. Amend Sec.  1149.9(a)(1) by removing ``$5,000'' and adding in its 
place ``$10,957''.

PART 1158--NEW RESTRICTIONS ON LOBBYING

0
3. The authority citation for part 1158 is revised to read as follows:

    Authority:  20 U.S.C. 959; 28 U.S.C. 2461; 31 U.S.C. 1352.


Sec.  1158.400   [Amended]

0
4. Amend Sec.  1158.400(a) and (b) by:
0
a. Removing ``$10,000'' and adding in its place ``$19,246'' each place 
it appears.
0
b. Removing ``$100,000'' and adding in its place ``$192,459'' each 
place it appears.

Appendix A to Part 1158 [Amended]

0
5. Amend appendix A to part 1158 by:
0
a. Removing ``$10,000'' and adding in its place ``$19,246'' each place 
it appears.
0
b. Removing ``$100,000'' and adding in its place ``$192,459'' each 
place it appears.

    Dated: June 7, 2017.
Kathy N. Daum,
Director, Administrative Services Office.
[FR Doc. 2017-12071 Filed 6-14-17; 8:45 am]
 BILLING CODE P



                                                                Federal Register / Vol. 82, No. 114 / Thursday, June 15, 2017 / Rules and Regulations                                               27431

                                             America, the State of Wyoming, the                      (Onshore Oil and Gas Leasing) and 43                     Dated: June 9, 2017.
                                             State of Montana, the State of North                    CFR subpart 3600 (sic) (Onshore Oil and                Katharine S. MacGregor
                                             Dakota, and the State of Texas. This                    Gas Operations), Additions of 43 CFR                   Delegated the Authority of the Assistant
                                             litigation has been consolidated and is                 subpart 3178 (Royalty-Free Use of Lease                Secretary for Land and Minerals
                                             now pending in the U.S. District Court                  Production) and 43 CFR subpart 3179                    Management.
                                             for the District of Wyoming. Wyoming v.                 (Waste Prevention and Resource                         [FR Doc. 2017–12325 Filed 6–14–17; 8:45 am]
                                             U.S. Dep’t of the Interior, Case No. 2:16–              Conservation) (November 10, 2016)),                    BILLING CODE 4310–84–P
                                             cv–00285–SWS (D. Wyo.). Petitioners                     and the uncertain future these
                                             assert that the BLM was arbitrary and                   requirements face in light of the
                                             capricious in promulgating the Rule and                 pending litigation and administrative                  NATIONAL FOUNDATION FOR THE
                                             that the Rule exceeds the BLM’s                         review of the Rule, the BLM finds that                 ARTS AND HUMANITIES
                                             statutory authority.                                    justice requires it to postpone the future
                                                On March 28, 2017, the President                     compliance dates for the following                     National Endowment for the Arts
                                             issued Executive Order No. 13783 (E.O.                  sections of the Rule: 43 CFR 3179.7,
                                             13783) entitled, ‘‘Promoting Energy                     3179.9, 3179.201, 3179.202, 3179.203,                  45 CFR Parts 1149 and 1158
                                             Independence and Economic Growth.’’                     and 3179.301–3179.305.
                                             E.O. 13783 directed the Secretary of the                                                                       RIN 3135–AA33
                                                                                                        While the BLM believes the Waste
                                             Interior (Secretary) to review the Rule                 Prevention Rule was properly                           Implementing the Federal Civil
                                             for consistency with the policies set                   promulgated, the petitioners have raised               Penalties Adjustment Act
                                             forth in Section 1 of E.O. 13783 and, if                serious questions concerning the                       Improvements Act of 2015
                                             appropriate, publish for notice and                     validity of certain provisions of the
                                             comment a proposed rule suspending,                     Rule. Given this legal uncertainty,                    AGENCY:  National Endowment for the
                                             revising, or rescinding the Rule. E.O.                  operators should not be required to                    Arts, National Foundation for the Arts
                                             13783 Sec. 7(b). On March 29, 2017, the                 expend substantial time and resources                  and Humanities.
                                             Secretary issued Secretarial Order 3349                 to comply with regulatory requirements                 ACTION: Interim final rule; request for
                                             implementing E.O. 13783. The                            that may prove short-lived as a result of              comments.
                                             Department’s review of the Rule is                      pending litigation or the administrative
                                             ongoing.                                                review that is already under way.                      SUMMARY:    The National Endowment for
                                                The Secretary has received written                                                                          the Arts (NEA) is adjusting the
                                                                                                     Postponing these compliance dates will
                                             requests from WEA and the American                                                                             maximum civil monetary penalties that
                                                                                                     help preserve the regulatory status quo
                                             Petroleum Institute (API) that the BLM                                                                         may be imposed for violations of the
                                                                                                     while the litigation is pending and the
                                             suspend the Rule or postpone its                                                                               Program Fraud and Civil Remedies Act
                                                                                                     Department reviews and reconsiders the
                                             compliance dates in light of the                                                                               (PFCRA) and the NEA’s Restrictions on
                                                                                                     Rule.
                                             regulatory uncertainty created by the                                                                          Lobbying to reflect the requirements of
                                             pending litigation and the ongoing                         The provisions with compliance dates
                                                                                                     that have passed and are therefore                     the Federal Civil Penalties Inflation
                                             administrative review of the Rule. Letter                                                                      Adjustment Act Improvements Act of
                                             from Kathleen M. Sgamma to Secretary                    unaffected by this document include:
                                                                                                     the requirement that operators submit a                2015 (the 2015 Act). The 2015 Act
                                             Zinke (April 4, 2017); letter from Jack N.                                                                     further amended the Federal Civil
                                             Gerard to Secretary Zinke (May 16,                      ‘‘waste minimization plan’’ with
                                                                                                     applications for permits to drill (43 CFR              Penalties Inflation Adjustment Act of
                                             2017). Both API and WEA stated that                                                                            1990 (the Inflation Adjustment Act) to
                                             operators face the prospect of significant              3162.3–1), new regulations for the
                                                                                                     royalty-free use of production (43 CFR                 improve the effectiveness of civil
                                             expenditures to comply with provisions                                                                         monetary penalties and to maintain
                                             of the Rule that will become operative                  subpart 3178), new regulatory
                                                                                                     definitions of ‘‘unavoidably lost’’ and                their deterrent effect.
                                             in January 2018. WEA specifically noted
                                                                                                     ‘‘avoidably lost’’ oil and gas (43 CFR                 DATES:
                                             that the LDAR, storage tank, and
                                             pneumatic device provisions will                        3179.4), limits on venting and flaring                    Effective date: This rule is effective
                                             require operators to begin purchasing                   during drilling and production                         June 15, 2017.
                                             and installing tens of thousands of                     operations (43 CFR 3179.101–179.105),                     Comments date: Submit comments on
                                             replacement parts in the near future.                   and requirements for downhole well                     or before July 17, 2017.
                                                Section 705 of the Administrative                    maintenance and liquids unloading (43                  ADDRESSES: You may submit comments,
                                             Procedure Act (APA), 5 U.S.C. 705,                      CFR 3179.204).                                         identified by RIN 3135–AA33, by any of
                                             provides that, ‘‘[w]hen an agency finds                    Separately, the BLM intends to                      the following methods:
                                             that justice so requires, it may postpone               conduct notice-and-comment                                • Federal eRulemaking Portal:
                                             the effective date of action taken by it,               rulemaking to suspend or extend the                    https://www.regulations.gov. Follow the
                                             pending judicial review.’’ The Rule                     compliance dates of those sections                     instructions for submitting comments.
                                             obligates operators to comply with its                  affected by the Rule.                                     • Email: generalcounsel@arts.gov.
                                             ‘‘capture percentage,’’ flaring                                                                                Include RIN 3135–AA33 in the subject
                                                                                                     II. Postponement of Compliance Dates
                                             measurement, pneumatic equipment,                                                                              line of the message.
                                             storage tank, and LDAR provisions                         Pursuant to Section 705 of the APA,                     • Mail: National Endowment for the
                                             beginning on January 17, 2018. This                     the BLM hereby postpones the future                    Arts, Office of the General Counsel, 400
                                             compliance date has not yet passed and                  compliance dates for the following                     7th Street SW., Second Floor,
                                             is within the meaning of the term                       sections affected by the final rule                    Washington, DC 20506.
pmangrum on DSK3GDR082PROD with RULES




                                             ‘‘effective date’’ as that term is used in              entitled, ‘‘Waste Prevention, Production                  • Hand Delivery/Courier: National
                                             Section 705 of the APA. Considering the                 Subject to Royalties, and Resource                     Endowment for the Arts, Office of the
                                             substantial cost that complying with                    Conservation’’, pending judicial review:               General Counsel, 400 7th Street SW.,
                                             these requirements poses to operators                   43 CFR 3179.7, 3179.9, 3179.201,                       Second Floor, Washington, DC 20506.
                                             (see U.S. Bureau of Land Management,                    3179.202, 3179.203, and 3179.301–                         Instructions: All submissions received
                                             Regulatory Impact Analysis for:                         3179.305. BLM will publish a document                  must include the agency name and
                                             Revisions to 43 CFR subpart 3100                        announcing the outcome of that review.                 docket number or Regulatory


                                        VerDate Sep<11>2014   14:00 Jun 14, 2017   Jkt 241001   PO 00000   Frm 00029   Fmt 4700   Sfmt 4700   E:\FR\FM\15JNR1.SGM   15JNR1


                                             27432              Federal Register / Vol. 82, No. 114 / Thursday, June 15, 2017 / Rules and Regulations

                                             Information Number (3135–AA27) for                      15 of each year following the initial                  B. Adjustments to Penalties Under the
                                             this rulemaking.                                        adjustment described above. For annual                 NEA’s Restrictions on Lobbying
                                               Docket: For access to the docket to                   adjustments made in accordance with                    Regulations
                                             read background documents or                            the 2015 Act, the amount of the                          For purposes of the initial adjustment
                                             comments received, go to 400 7th Street                 adjustment is based on the percent                     under the 2015 Act, Congress last set or
                                             SW., Washington, DC.                                    increase between the CPI–U for the                     adjusted the amount of Restrictions on
                                             FOR FURTHER INFORMATION CONTACT:                        month of October preceding the date of                 Lobbying civil penalties in 1989.
                                             Aswathi Zachariah, Assistant General                    the adjustment and the CPI–U for the                   Between October 1989 and October
                                             Counsel, National Endowment for the                     October one year prior to the October                  2015, the CPI–U has increased by
                                             Arts, 400 7th St. SW., Washington, DC                   immediately preceding the date of the                  189.361 percent. The post-adjustment
                                             20506, Telephone: 202–682–5418.                         adjustment. If there is no increase, there             penalty amount or range is obtained by
                                             SUPPLEMENTARY INFORMATION:                              is no adjustment of civil penalties.                   multiplying the pre-adjustment penalty
                                             1. Background                                              This interim final rule incorporates                amount or range by the percent change
                                                                                                     the initial adjustment and one annual                  in the CPI–U over the relevant time
                                                The 2015 Act requires agencies to: (1)
                                                                                                                                                            period, and rounding to the nearest
                                             Adjust the level of civil monetary                      adjustment, and applies those
                                                                                                                                                            dollar. Therefore, the post-adjustment
                                             penalties with an initial ‘‘catch-up’’                  adjustments cumulatively to each of the
                                                                                                                                                            minimum penalty under the law on
                                             adjustment through an interim final                     two civil regulatory penalties identified              Restrictions on Lobbying is $10,000 ×
                                             rulemaking; and (2) make subsequent                     herein.                                                1.89361 = $18,936.10, which rounds to
                                             annual adjustments for inflation.
                                             Inflation adjustments will be based on                  A. Adjustments to Penalties Under the                  $18,936, and the post-adjustment
                                             the percent change in the Consumer                      NEA’s Program Fraud and Civil                          maximum penalty under law on
                                             Price Index for all Urban Consumers                     Remedies Act Regulations                               Restrictions on Lobbying is $100,000 ×
                                             (CPI–U) for the month of October                                                                               1.89361 = $189,361. The new, post-
                                             preceding the date of the adjustment,                     For purposes of the initial adjustment               adjustment penalties are less than 250
                                             relative to the October CPI–U in the year               under the 2015 Act, Congress last set or               percent of the pre-adjustment penalties,
                                             of the previous adjustment.                             adjusted the amount of PFCRA civil                     so the limitation on the amount of the
                                                The Office of Management and Budget                  penalties in 1986. Between October                     adjustment is not implicated. Therefore,
                                             has issued two memoranda, providing                     1986 and October 2015, the CPI–U has                   the range of penalties under the law on
                                             guidance on implementing and                            increased by 215.628 percent. The post-                Restrictions on Lobbying, for purposes
                                             calculating adjustments.1                               adjustment penalty amount or range is                  of the first adjustment shall be between
                                                The NEA has identified two civil                     obtained by multiplying the pre-                       $18,936 and $189,361.
                                             penalties in its regulations that require               adjustment penalty amount or range by                    This regulation also incorporates the
                                             adjustment: (1) The penalty associated                  the percent change in the CPI–U over                   subsequent required annual adjustment.
                                             with Restrictions on Lobbying (45 CFR                   the relevant time period, and rounding                 The post-adjustment penalty or range is
                                             1158.400; 45 CFR part 1158, app. A) and                 to the nearest dollar. Therefore, this                 obtained by multiplying the pre-
                                             (2) the penalty associated with the                                                                            adjustment penalty or range by the
                                                                                                     post-adjustment maximum penalty
                                             Program Fraud Civil Remedies Act (45                                                                           percent change in the CPI–U over the
                                                                                                     under the PFCRA is $5,000 × 2.15628 =
                                             CFR 1149.9).                                                                                                   relevant time period and rounding to
                                                                                                     $10,781.40, which rounds to $10,781.                   the nearest dollar. Between October
                                             2. Method of Calculation                                The new, post-adjustment penalty less                  2015 and October 2016, the CPI–U
                                                For the first adjustment made in                     than 250 percent of the pre-adjustment                 increased by 101.636 percent. Therefore,
                                             accordance with the 2015 Act, the                       penalty, so the limitation on the amount               the post-adjustment minimum penalty
                                             amount of the adjustment is calculated                  of the adjustment is not implicated.                   under the law on Restrictions on
                                             based on the percent change between                     Therefore, the maximum penalty under                   Lobbying is $18,936 × 1.01636 =
                                             the CPI–U for October of the last year in               the PFCRA for false claims or statements               $19,245.79, which rounds to $19,246,
                                             which penalties were previously                         for purposes of the first adjustment will              and the post-adjustment maximum
                                             adjusted (not including any adjustment                  be $10,781.                                            penalty under law on Restrictions on
                                             made pursuant to the Inflation                            This regulation also incorporates the                Lobbying is $189,361 × 1.01636 =
                                             Adjustment Act before November 2,                       subsequent required annual adjustment.                 $192,458.95, which rounds to $192,459.
                                             2015), and the CPI–U for October 2015.                  The post-adjustment penalty or range is                The new, post-adjustment penalties are
                                             The 10 percent cap on adjustments                       obtained by multiplying the pre-                       less than 250 percent of the pre-
                                             imposed by the Debt Collection                          adjustment penalty or range by the                     adjustment penalties, so the limitation
                                             Improvement Act of 1996 has been                        percent change in the CPI–U over the                   on the amount of the adjustment is not
                                             eliminated by the 2015 Act. Instead, the                                                                       implicated. Therefore, the range of
                                                                                                     relevant time period and rounding to
                                             2015 Act imposes a cap on the amount                                                                           penalties under the law on Restrictions
                                                                                                     the nearest dollar. Between October
                                             of this initial adjustment, such that the                                                                      on Lobbying, for purposes of the first
                                                                                                     2015 and October 2016, the CPI–U
                                             amount of the increase may not exceed                                                                          adjustment shall be between $19,246
                                             150 percent of the pre-adjustment                       increased by 101.636 percent. Therefore,               and $192,459.
                                             penalty amount or range. As a result, the               the new post-adjustment maximum
                                             total penalty amount or range after the                 penalty under the PFCRA is $10,781 ×                   3. Subsequent Annual Adjustments
                                             initial adjustment under the 2015 Act                   1.01636 = $10,957.38, which rounds to                    The 2015 Act also requires agencies to
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                                             may not exceed 250 percent of the pre-                  $10,957. The new, post-adjustment                      make annual adjustments to civil
                                             adjustment penalty amount or range.                     penalty is less than 250 percent of the                penalty amounts no later than January
                                                The 2015 Act also requires agencies to               pre-adjustment penalty, so the                         15 of each year following the initial
                                             make annual adjustments to civil                        limitation on the amount of the                        adjustment described above. For
                                             penalty amounts no later than January                   adjustment is not implicated. Therefore,               subsequent annual adjustments made in
                                                                                                     the maximum penalty under the PFCRA                    accordance with the 2015 Act, the
                                               1 OMB   Memoranda M–16–06 and M–17–11.                will be $10,957.                                       amount of the adjustment will have the


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                                                                Federal Register / Vol. 82, No. 114 / Thursday, June 15, 2017 / Rules and Regulations                                        27433

                                             same basis as the annual adjustments                    Federalism implications mean                           Small Business Regulatory Enforcement
                                             previously described herein (the percent                ‘‘substantial direct effects on the States,            Fairness Act of 1996 (Sec. 804, Pub. L.
                                             increase between the CPI–U for the                      on the relationship between the national               104–121)
                                             month of October preceding the date of                  government and the States, or on the
                                             the adjustment and the CPI–U for the                    distribution of power and                                 This interim final rule would not be
                                             October one year prior to the October                   responsibilities among the various                     a major rule as defined in section 804
                                             immediately preceding the date of the                   levels of government.’’ The NEA has                    of the Small Business Regulatory
                                             adjustment). If there is no increase,                   determined that this rulemaking will                   Enforcement Fairness Act of 1996. This
                                             there is no adjustment of civil penalties.              not have Federalism implications                       interim final rule will not result in an
                                             Therefore, if the NEA adjusts penalties                 within the meaning of E.O. 13132.                      annual effect on the economy of
                                             in January 2018, the adjustment will be                                                                        $100,000,000 or more, a major increase
                                                                                                     Civil Justice Reform (Executive Order                  in costs or prices, significant adverse
                                             calculated based on the percent change
                                                                                                     12988)                                                 effects on competition, employment,
                                             between the CPI–U for October 2017
                                             (the October immediately preceding the                     This Directive meets the applicable                 investment, productivity, innovation, or
                                             date of adjustment) and October 2016                    standards set forth in section 3(a) and                on the ability of United States-based
                                             (the October one year prior to October                  3(b)(2) of E.O. 12988. Specifically, this              companies to compete with foreign
                                             2017). The NEA will publish the                         interim final rule is written in clear                 based companies in domestic and
                                             amount of these annual inflation                        language designed to help reduce                       export markets.
                                             adjustments in the Federal Register no                  litigation.                                            E-Government Act of 2002 (44 U.S.C.
                                             later than January 15 of each year.                                                                            3504)
                                                                                                     Indian Tribal Governments (Executive
                                             4. Compliance                                           Order 13175)                                              Section 206 of the E-Government Act
                                             Regulatory Planning and Review                            Under the criteria in E.O. 13175, we                 requires agencies, to the extent
                                             (Executive Order 12866)                                 have evaluated this interim final rule                 practicable, to ensure that all
                                                                                                     and determined that it would have no                   information about that agency required
                                                Executive Order 12866 (E.O. 12866)                                                                          to be published in the Federal Register
                                             established a process for review of rules               potential effects on Federally recognized
                                                                                                     Indian Tribes.                                         is also published on a publicly
                                             by the Office of Information and                                                                               accessible Web site. All information
                                             Regulatory Affairs, which is within the                 Takings (Executive Order 12630)                        about the NEA required to be published
                                             Office of Management and Budget                                                                                in the Federal Register may be accessed
                                             (OMB). Only ‘‘significant’’ proposed and                  Under the criteria in E.O. 12630, this
                                                                                                     rulemaking does not have significant                   at www.arts.gov. This Act also requires
                                             final rules are subject to review under                                                                        agencies to accept public comments on
                                             this Executive Order. ‘‘Significant,’’ as               takings implications. Therefore, a
                                                                                                     takings implication assessment is not                  their rules ‘‘by electronic means.’’ See
                                             used in E.O. 12866, means                                                                                      heading ‘‘Public Participation’’ for
                                             ‘‘economically significant.’’ It refers to              required.
                                                                                                                                                            directions on electronic submission of
                                             rules with (1) an impact on the economy                 Regulatory Flexibility Act of 1980                     public comments on this interim final
                                             of $100 million; or that (2) were                       (5 U.S.C. 605(b))                                      rule.
                                             inconsistent or interfered with an action
                                             taken or planned by another agency; (3)                   This rulemaking will not have a                         Finally, the E-Government Act
                                             materially altered the budgetary impact                 significant adverse impact on a                        requires, to the extent practicable, that
                                             of entitlements, grants, user fees, or loan             substantial number of small entities,                  agencies ensure that a publicly
                                             programs; or (4) raised novel legal or                  including small businesses, small                      accessible Federal Government Web site
                                             policy issues.                                          governmental jurisdictions, or certain                 contains electronic dockets for
                                                This interim final rule would not be                 small not-for-profit organizations.                    rulemakings under the Administrative
                                             a significant policy change and OMB                                                                            Procedure Act of 1946 (5 U.S.C. 551 et
                                                                                                     Paperwork Reduction Act of 1995                        seq.). Under this Act, an electronic
                                             has not reviewed this interim final rule                (44 U.S.C., Chapter 35)
                                             under E.O. 12866. We have made the                                                                             docket consists of all submissions under
                                             assessments required by E.O. 12866 and                     This rulemaking will not impose any                 section 553(c) of title 5, United States
                                             determined that this rulemaking: (1)                    ‘‘information collection’’ requirements                Code; and all other materials that by
                                             Will not have an effect of $100 million                 under the Paperwork Reduction Act.                     agency rule or practice are included in
                                             or more on the economy; (2) will not                    Under the act, information collection                  the rulemaking docket under section
                                             adversely affect in a material way the                  means the obtaining or disclosure of                   553(c) of title 5, United States Code,
                                             economy, productivity, competition,                     facts or opinions by or for an agency by               whether or not submitted electronically.
                                             jobs, the environment, public health or                 10 or more nonfederal persons.                         The Web site https://
                                             safety, or State, local, or Tribal                                                                             www.regulations.gov contains electronic
                                                                                                     Unfunded Mandates Act of 1995                          dockets for the NEA’s rulemakings
                                             governments or communities; (3) will                    (Section 202, Pub. L. 104–4)
                                             not create a serious inconsistency or                                                                          under the Administrative Procedure Act
                                             otherwise interfere with an action taken                  This rulemaking does not contain a                   of 1946.
                                             or planned by another agency; (4) does                  Federal mandate that will result in the                Plain Writing Act of 2010 (5 U.S.C. 301)
                                             not alter the budgetary effects of                      expenditure by State, local, and tribal
                                             entitlements, grants, user fees, or loan                governments, in the aggregate, or by the                 Under this Act, the term ‘‘plain
                                             programs or the rights or obligations of                private sector of $100 million or more                 writing’’ means writing that is clear,
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                                             their recipients; and (5) does not raise                in any one year.                                       concise, well-organized, and follows
                                             novel legal or policy issues.                                                                                  other best practices appropriate to the
                                                                                                     National Environmental Policy Act of
                                                                                                                                                            subject or field and intended audience.
                                             Federalism (Executive Order 13132)                      1969 (5 U.S.C. 804)
                                                                                                                                                            To ensure that this rulemaking has been
                                               This rulemaking does not have                           The interim final rule will not have                 written in plain and clear language so
                                             Federalism implications, as set forth in                significant effect on the human                        that it can be used and understood by
                                             E.O. 13132. As used in this order,                      environment.                                           the public, the NEA has modeled the


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                                             27434              Federal Register / Vol. 82, No. 114 / Thursday, June 15, 2017 / Rules and Regulations

                                             language of this rule on the Federal                      Authority: 20 U.S.C. 959; 28 U.S.C. 2461;            establish requirements pertaining to the
                                             Plain Language Guidelines.                              31 U.S.C. 1352.                                        monitoring and reporting of such taking.
                                             Public Participation                                    § 1158.400    [Amended]                                DATES: As of June 15, 2017, the
                                                                                                                                                            expiration date of the rule published at
                                                The NEA has written this interim                     ■  4. Amend § 1158.400(a) and (b) by:                  77 FR 31537 on May 29, 2012, is
                                             final rule in compliance with E.O.                      ■  a. Removing ‘‘$10,000’’ and adding in               extended from June 28, 2017, to July 3,
                                             13563 by ensuring its accessibility,                    its place ‘‘$19,246’’ each place it                    2022. This final rule is effective July 4,
                                             consistency, simplicity of language, and                appears.                                               2017.
                                             overall comprehensibility. In addition,                 ■ b. Removing ‘‘$100,000’’ and adding
                                                                                                                                                            ADDRESSES: A copy of MBNMS’s
                                             the public participation goals of this                  in its place ‘‘$192,459’’ each place it
                                                                                                                                                            application and supporting documents,
                                             order are also satisfied by the NEA’s                   appears.
                                                                                                                                                            as well as a list of the references cited
                                             participation in a process in which its                 Appendix A to Part 1158 [Amended]                      in this document, may be obtained
                                             views and information are made public                                                                          online at: www.nmfs.noaa.gov/pr/
                                             to the extent feasible, and before any                  ■  5. Amend appendix A to part 1158 by:                permits/incidental/research.htm. In case
                                             decisions are actually made. This will                  ■  a. Removing ‘‘$10,000’’ and adding in               of problems accessing these documents,
                                             allow the public the opportunity to react               its place ‘‘$19,246’’ each place it                    please call the contact listed below (see
                                             to the comments, arguments, and                         appears.                                               FOR FURTHER INFORMATION CONTACT).
                                             information of others during the                        ■ b. Removing ‘‘$100,000’’ and adding
                                                                                                                                                            FOR FURTHER INFORMATION CONTACT:
                                             rulemaking process. The NEA initiates                   in its place ‘‘$192,459’’ each place it
                                                                                                                                                            Laura McCue, Office of Protected
                                             its participation in an open exchange by                appears.
                                                                                                                                                            Resources, NMFS, (301) 427–8401.
                                             posting the regulation and its                            Dated: June 7, 2017.                                 SUPPLEMENTARY INFORMATION:
                                             rulemaking docket on https://                           Kathy N. Daum,
                                             www.regulations.gov.                                    Director, Administrative Services Office.              Purpose and Need for This Regulatory
                                                Finally, Section 2 of E.O. 13563                                                                            Action
                                                                                                     [FR Doc. 2017–12071 Filed 6–14–17; 8:45 am]
                                             directs agencies, where feasible and                    BILLING CODE P                                            These regulations, promulgated under
                                             appropriate, to seek the views of those                                                                        the Marine Mammal Protection Act (16
                                             who are likely to be affected by                                                                               U.S.C. 1361 et seq.), establish a
                                             rulemaking. This provision emphasizes                                                                          framework for authorizing the take of
                                             the importance of prior consultation                    DEPARTMENT OF COMMERCE
                                                                                                                                                            marine mammals incidental to the
                                             with ‘‘those who are likely to benefit                                                                         commercial fireworks displays in four
                                                                                                     National Oceanic and Atmospheric
                                             from and those who are potentially                                                                             regions within the MBNMS: Half Moon
                                                                                                     Administration
                                             subject to such rulemaking.’’ One goal is                                                                      Bay, Santa Cruz/Soquel, Monterey
                                             to solicit ideas about alternatives,                                                                           Peninsula, and Cambria. We received an
                                                                                                     50 CFR Part 217
                                             relevant costs and benefits (both                                                                              adequate and complete application from
                                             quantitative and qualitative), and                      [Docket No. 161216999–7516–02]                         the MBNMS on October 18, 2016,
                                             potential flexibilities. The NEA reaches                                                                       requesting 5-year regulations and
                                             out to interested and affected parties by               RIN 0648–BG50
                                                                                                                                                            authorization to take, by Level B
                                             soliciting comments.                                                                                           harassment, California sea lions
                                                                                                     Taking and Importing Marine
                                             List of Subjects in 45 CFR Parts 1149                   Mammals; Taking Marine Mammals                         (Zalophus californianus) and harbor
                                             and 1158                                                Incidental to Commercial Fireworks                     seals (Phoca vitulina richardii)
                                                                                                     Displays at Monterey Bay National                      incidental to commercial fireworks
                                               Administrative practice and                                                                                  displays permitted by the MBNMS.
                                                                                                     Marine Sanctuary
                                             procedure, Government contracts, Grant                                                                         Please see Background below for
                                             programs, Loan programs, Lobbying,                      AGENCY:  National Marine Fisheries                     definitions of harassment. The
                                             Penalties.                                              Service (NMFS), National Oceanic and                   Sanctuary’s current incidental take
                                               For the reasons stated in the                         Atmospheric Administration (NOAA),                     authorization regulations expire June
                                             preamble, the NEA amends 45 CFR                         Commerce.                                              28, 2017. The regulations implemented
                                             parts 1149 and 1158 as follows:                         ACTION: Final rule.                                    by this final rule would be valid from
                                                                                                                                                            July 4, 2017 through July 3, 2022.
                                             PART 1149—PROGRAM FRAUD CIVIL                           SUMMARY:   NMFS, upon request from the
                                                                                                     Monterey Bay National Marine                           Legal Authority for the Regulatory
                                             REMEDIES ACT REGULATIONS
                                                                                                     Sanctuary (MBNMS or Sanctuary),                        Action
                                             ■  1. The authority citation for part 1149              hereby issues regulations pursuant to                     Sections 101(a)(5)(A) and (D) of the
                                             is revised to read as follows:                          the Marine Mammal Protection Act                       MMPA (16 U.S.C. 1361 et seq.) direct
                                               Authority: 5 U.S.C. App. 8G(a)(2); 20                 (MMPA) to govern the taking of marine                  the Secretary of Commerce to allow,
                                             U.S.C. 959; 28 U.S.C. 2461 note; 31 U.S.C.              mammals incidental to commercial                       upon request, the incidental but not
                                             3801–3812.                                              fireworks displays permitted by the                    intentional taking of small numbers of
                                                                                                     Sanctuary in California, over the course               marine mammals by U.S. citizens who
                                             § 1149.9   [Amended]                                    of five years (2017–2022). These                       engage in a specified activity (other than
                                             ■  2. Amend § 1149.9(a)(1) by removing                  regulations, which allow for the                       commercial fishing) within a specified
                                             ‘‘$5,000’’ and adding in its place                      issuance of Letters of Authorization                   geographical region for up to five years
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                                             ‘‘$10,957’’.                                            (LOA) for the incidental take of marine                if, after notice and public comment, the
                                                                                                     mammals during the described activities                agency makes certain findings and issue
                                             PART 1158—NEW RESTRICTIONS ON                           and specified timeframes, prescribe the                regulations that set forth permissible
                                             LOBBYING                                                permissible methods of taking and other                methods of taking pursuant to that
                                                                                                     means of effecting the least practicable               activity, as well as monitoring and
                                             ■  3. The authority citation for part 1158              adverse impact on marine mammal                        reporting requirements. Section
                                             is revised to read as follows:                          species or stocks and their habitat, and               101(a)(5)(A) of the MMPA and the


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Document Created: 2017-06-15 01:03:24
Document Modified: 2017-06-15 01:03:24
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionInterim final rule; request for comments.
DatesEffective date: This rule is effective June 15, 2017.
ContactAswathi Zachariah, Assistant General Counsel, National Endowment for the Arts, 400 7th St. SW., Washington, DC 20506, Telephone: 202-682-5418.
FR Citation82 FR 27431 
RIN Number3135-AA33
CFR Citation45 CFR 1149
45 CFR 1158
CFR AssociatedAdministrative Practice and Procedure; Government Contracts; Grant Programs; Loan Programs; Lobbying and Penalties

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