82_FR_3175 82 FR 3168 - 2017 Civil Monetary Penalties Inflationary Adjustment

82 FR 3168 - 2017 Civil Monetary Penalties Inflationary Adjustment

DEPARTMENT OF STATE

Federal Register Volume 82, Issue 7 (January 11, 2017)

Page Range3168-3170
FR Document2017-00166

This final rule is issued to adjust the civil monetary penalties (CMP) for regulatory provisions maintained and enforced by the Department of State. The revised CMP adjusts the amount of civil monetary penalties assessed by the Department of State based on the December 2016 guidance from the Office of Management and Budget. The new amounts will apply only to those penalties assessed on or after the effective date of this rule, regardless of the date on which the underlying facts or violations occurred.

Federal Register, Volume 82 Issue 7 (Wednesday, January 11, 2017)
[Federal Register Volume 82, Number 7 (Wednesday, January 11, 2017)]
[Rules and Regulations]
[Pages 3168-3170]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-00166]


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DEPARTMENT OF STATE

22 CFR Parts 35, 103, 127 and 138

RIN 1400-AE09
Public Notice: 9828]


2017 Civil Monetary Penalties Inflationary Adjustment

AGENCY: Department of State.

ACTION: Final rule.

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

SUMMARY: This final rule is issued to adjust the civil monetary 
penalties (CMP) for regulatory provisions maintained and enforced by 
the Department of State. The revised CMP adjusts the amount of civil 
monetary penalties assessed by the Department of State based on the 
December 2016 guidance from the Office of Management and Budget. The 
new amounts will apply only to those penalties assessed on or after the 
effective date of this rule, regardless of the date on which the 
underlying facts or violations occurred.

DATES: This final rule is effective on January 11, 2017.

FOR FURTHER INFORMATION CONTACT: Alice Kottmyer, Attorney-Adviser, 
Office of Management, [email protected]. ATTN: Regulatory Change, 
CMP Adjustments, (202) 647-2318.

SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Inflation 
Adjustment Act of 1990, Public Law 101-410 (the 1990 Act), as amended 
by the Debt Collection Improvement Act of

[[Page 3169]]

1996, Public Law 104-134 (the 1996 Act), required the head of each 
agency to adjust its CMPs for inflation no later than October 23, 1996 
and required agencies to make adjustments at least once every four 
years thereafter. The Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015, Section 701 of Public Law 114-74 (the 2015 
Act) further amended the 1990 Act by requiring agencies to adjust CMPs, 
if necessary, pursuant to a ``catch-up'' adjustment methodology 
prescribed by the 2015 Act, which mandated that the catch-up adjustment 
take effect no later than August 1, 2016. Additionally, the 2015 Act 
required agencies to make annual adjustments to their respective CMPs 
in accordance with guidance issued by the Office of Management and 
Budget (OMB).
    Based on these statutes, the Department of State (the Department) 
published a final rule on June 8, 2016, to implement the ``catch-up'' 
provisions (``June 2016 final rule''). See 81 FR 36791.
    On December 16, 2016, OMB notified agencies that the annual cost-
of-living adjustment multiplier for 2017, based on the Consumer Price 
Index, is 1.01636. Additional information may be found in OMB 
Memorandum M-17-11, which can be found at https://www.whitehouse.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf. This final rule 
amends Department CMPs for fiscal year 2017.
    Within the Department of State (Title 22, Code of Federal 
Regulations), this rule affects four areas:
    (1) Part 35, which implements the Program Fraud Civil Remedies Act 
of 1986 (PFCRA), codified at 31 U.S.C. 3801-3812;
    (2) Part 103, which implements the Chemical Weapons Convention 
Implementation Act of 1998 (CWC Act);
    (3) Part 127, which implements the penalty provisions of sections 
38(e), 39A(c), and 40(k) of the Arms Export Control Act (AECA) (22 
U.S.C. 2778(e), 2779a(c), 2780(k)); and
    (4) Part 138, which implements Section 319 of Public Law 101-121, 
codified at 31 U.S.C. 1352, and prohibits recipients of federal 
contracts, grants, and loans from using appropriated funds for lobbying 
the Executive or Legislative Branches of the federal government in 
connection with a specific contract.

Specific Changes to 22 CFR Made by This Rule

I. Part 35

    The PFRCA, enacted in 1986, authorizes agencies, with approval from 
the Department of Justice, to pursue individuals or firms for false 
claims. According to the June 2016 final rule, the maximum liability 
under the PFRCA is $10,781, up to a maximum of $323,442. Applying the 
2016 multiplier (1.01636) provided by OMB, the new maximum liabilities 
are as follows: $10,957, up to a maximum of $328,734.

II. Part 103

    The CWC Act provided domestic implementation of the Convention on 
the Prohibition of the Development, Production, Stockpiling, and Use of 
Chemical Weapons and on Their Destruction. The penalty provisions of 
the CWC Act are codified at 22 U.S.C. 6761. Based on the June 2016 
final rule, a person violating 22 U.S.C. 6761(a)(1)(A), Prohibited acts 
relating to inspections, is subject to a civil penalty of an amount not 
to exceed $36,256 for each such violation. A person violating 22 U.S.C. 
6761(a)(1)(B), Recordkeeping violations, is subject to a civil penalty 
in an amount not to exceed $7, 251 for each such violation.
    Applying the 2016 multiplier (1.01636), the new maximum amounts are 
as follows: Prohibited acts related to inspections, $36,849; for 
Recordkeeping violations, $7,370.

III. Part 127

    The Assistant Secretary of State for Political-Military Affairs is 
responsible for the imposition of CMPs under the International Traffic 
in Arms Regulations (ITAR), which is administered by the Directorate of 
Defense Trade Controls (DDTC).
    (1) AECA section 38(e):
    According to the June 2016 final rule, the new maximum penalty 
under 22 U.S.C. 2778(e), or Section 38(e) of the AECA, is $1,094,010 
per violation. Applying the 2016 multiplier (1.01636), the new maximum 
penalty is $1,111,908.
    (2) AECA section 39A(c):
    According to the June 2016 final rule, the new maximum adjusted 
penalty for 22 U.S.C. 2779a(c), or Section 39A(c) of the AECA, is 
$795,445 per violation. Applying the 2016 multiplier (1.01636), the new 
maximum penalty is $808,458.
    (3) AECA section 40(k):
    According to the June 2016 final rule, the maximum penalty for 22 
U.S.C. 2780(k), or Section 40(k) of the AECA, is $946,805 per 
violation. Applying the 2016 multiplier (1.01636), the new maximum 
penalty is $962,295.

IV. Part 138

    Section 319 of Public Law 101-121, codified at 31 U.S.C. 1352, 
provides penalties for recipients of federal contracts, grants, and 
loans who use appropriated funds to lobby the Executive or Legislative 
Branches of the federal government in connection with a specific 
contract, grant, or loan. Any person who violates that prohibition is 
subject to a civil penalty. The statute also requires each person who 
requests or receives a federal contract, grant, cooperative agreement, 
loan, or a federal commitment to insure or guarantee a loan, to 
disclose any lobbying; there is a penalty for failure to disclose.
    The June 2016 final rule raised the maximum penalties for both 
improper expenditures and failure to disclose, to not less than $18,936 
and not more than $189,361. Applying the 2016 multiplier (1.01636), the 
new maximum penalty under 31 U.S.C. 1352 is: not less than $19,246, and 
not more than $192,459.
Effective Date of Penalties
    The revised CMP amounts will go into effect on the date this rule 
is published. All violations for which CMPs are assessed on or after 
the effective date of this rule, regardless of whether the violation 
occurred before the effective date, will be assessed at the adjusted 
penalty level.
Future Adjustments and Reporting
    The 2015 Act directed agencies to undertake an annual review of 
CMPs using a formula prescribed by the statute. Annual adjustments to 
CMPs are made in accordance with the guidance issued by OMB. As in this 
rulemaking, the Department of State will publish notification of annual 
inflation adjustments to CMPs in the Federal Register no later than 
January 15 of each year, with the adjusted amount taking effect 
immediately upon publication.

Regulatory Analysis and Notices

Administrative Procedure Act

    The Department of State is publishing this rule using the ``good 
cause'' exception to the Administrative Procedure Act (5 U.S.C. 
553(b)), as the Department has determined that public comment on this 
rulemaking would be impractical, unnecessary, or contrary to the public 
interest. This rulemaking is mandatory; it implements Public Law 114-
74.

Regulatory Flexibility Act

    Because this rulemaking is exempt from Section 553 of the 
Administrative Procedures Act, a Regulatory Flexibility Analysis is not 
required.

Unfunded Mandates Reform Act of 1995

    This rule does not involve a mandate that will result in the 
expenditure by State, local, and tribal governments, in

[[Page 3170]]

the aggregate, or by the private sector, of $100 million or more in any 
year and it will not significantly or uniquely affect small 
governments. Therefore, no actions were deemed necessary under the 
provisions of the Unfunded Mandates Reform Act of 1995.

Small Business Regulatory Enforcement Fairness Act of 1996

    This rule has been found not to be a major rule within the meaning 
of the Small Business Regulatory Enforcement Fairness Act of 1996.

Executive Orders 12372 and 13132

    This amendment will not have substantial direct effects on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with Executive 
Order 13132, it is determined that this amendment does not have 
sufficient federalism implications to require consultations or warrant 
the preparation of a federalism summary impact statement.

Executive Orders 12866 and 13563

    The Department believes that benefits of the rulemaking outweigh 
any costs, and there are no feasible alternatives to this rulemaking. 
It is the Department's position that this rulemaking is not an 
economically significant rule under the criteria of Executive Order 
12866, and is consistent with the provisions of Executive Order 13563.

Executive Order 12988

    The Department of State has reviewed the proposed amendment in 
light of Executive Order 12988 to eliminate ambiguity, minimize 
litigation, establish clear legal standards, and reduce burden.

Executive Order 13175

    The Department of State has determined that this rulemaking will 
not have tribal implications, will not impose substantial direct 
compliance costs on Indian tribal governments, and will not preempt 
tribal law. Accordingly, Executive Order 13175 does not apply to this 
rulemaking.

Paperwork Reduction Act

    This rulemaking does not impose or revise any information 
collections subject to 44 U.S.C. Chapter 35.

List of Subjects

22 CFR Part 35

    Administrative practice and procedure, Claims, Fraud, Penalties.

22 CFR Part 103

    Administrative practice and procedure, Chemicals, Classified 
information, Foreign relations, Freedom of information, International 
organization, Investigations, Penalties, Reporting and recordkeeping 
requirements.

22 CFR Part 127

    Arms and munitions, Exports.

22 CFR Part 138

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

    For the reasons set forth above, 22 CFR parts 35, 103, 127, and 138 
are amended as follows:

PART 35--PROGRAM FRAUD CIVIL REMEDIES

0
1. The authority citation for part 35 continues to read as follows:

    Authority:  22 U.S.C. 2651a; 31 U.S.C. 3801 et seq.; Pub. L. 
114-74, 129 Stat. 584.


Sec.  35.3   [Amended]

0
2. In Sec.  35.3:
0
a. Remove ``$10,781'' and add in its place ``$10,957'', wherever it 
occurs.
0
b. In paragraph (f), remove ``$323,442'' and add in its place 
``$328,734''.

PART 103--REGULATIONS FOR IMPLEMENTATION OF THE CHEMICAL WEAPONS 
CONVENTION AND THE CHEMICAL WEAPONS CONVENTION IMPLEMENTATION ACT 
OF 1998 ON THE TAKING OF SAMPLES AND ON ENFORCEMENT OF REQUIREMENTS 
CONCERNING RECORDKEEPING AND INSPECTIONS

0
3. The authority citation for part 103 continues to read as follows:

    Authority:  22 U.S.C. 2651a; 22 U.S.C. 6701 et seq.; Pub. L. 
114-74, 129 Stat. 584.


Sec.  103.6   [Amended]

0
4. Amend Sec.  103.6 to remove ``$36,256'' and add in its place 
``$36,849'' in paragraph (a)(1), and to remove ``$7,251'' and add in 
its place ``$7,370'' in paragraph (a)(2).

PART 127--VIOLATIONS AND PENALTIES

0
5. The authority citation for part 127 continues to read as follows:

    Authority:  Sections 2, 38, and 42, Pub. L. 90-629, 90 Stat. 744 
(22 U.S.C. 2752, 2778, 2791); 22 U.S.C. 401; 22 U.S.C. 2651a; 22 
U.S.C. 2779a; 22 U.S.C. 2780; E.O. 13637, 78 FR 16129; Pub. L. 114-
74, 129 Stat. 584.


Sec.  127.10   [Amended]

0
6. Section 127.10 is amended as follows:
0
a. In paragraph (a)(1)(i), remove ``$1,094,010'' and add in its place 
``$1,111,908'';
0
b. In paragraph (a)(1)(ii), remove ``$795,445'' and add in its place 
``$808,458''; and
0
c. In paragraph (a)(1)(iii), remove ``$946,805'' and add in its place 
``962,295.''

PART 138--RESTRICTIONS ON LOBBYING

0
7. The authority citation for part 138 continues to read as follows:

    Authority:  22 U.S.C. 2651a; 31 U.S.C. 1352; Pub. L. 114-74, 129 
Stat. 584.

0
8. Revise the heading of part 138 to read as set forth above.


Sec.  138.400   [Amended]

0
9. Amend Sec.  138.400 by removing ``$18,936'' and ``$189,361'' and 
adding in their place ``$19,246'' and ``$192,459'', respectively, 
wherever they occur.

    Dated: January 4, 2017.
Alicia Frechette,
Executive Director, Office of the Legal Adviser & Bureau of Legislative 
Affairs, Department of State.
[FR Doc. 2017-00166 Filed 1-10-17; 8:45 am]
 BILLING CODE 4710-08-P



                                              3168             Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Rules and Regulations

                                              SUPPLEMENTARY INFORMATION:                              established to accommodate new Area                    Points, dated August 3, 2016, and
                                                                                                      Navigation (RNAV) Global Positioning                   effective September 15, 2016, is
                                              Authority for This Rulemaking
                                                                                                      System (GPS) standard instrument                       amended as follows:
                                                The FAA’s authority to issue rules                    approach procedures developed for the                  Paragraph 6005 Class E Airspace Areas
                                              regarding aviation safety is found in                   airport.                                               Extending Upward From 700 Feet or More
                                              Title 49 of the United States Code.                                                                            Above the Surface of the Earth.
                                              Subtitle I, Section 106 describes the                   Regulatory Notices and Analyses
                                              authority of the FAA Administrator.                                                                            *       *      *    *     *
                                                                                                         The FAA has determined that this
                                              Subtitle VII, Aviation Programs,                        regulation only involves an established                ANM WY E5 Thermopolis, WY [New]
                                              describes in more detail the scope of the               body of technical regulations for which                Hot Springs County Airport, WY
                                              agency’s authority. This rulemaking is                  frequent and routine amendments are                      (Lat. 43°42′49″ N., long. 108°23′23″ W.)
                                              promulgated under the authority                         necessary to keep them operationally                   That airspace extending upward from 700
                                              described in Subtitle VII, Part A,                      current, is non-controversial and                      feet above the surface within a 4.8-mile
                                              Subpart I, Section 40103. Under that                    unlikely to result in adverse or negative              radius of Hot Spring County Airport, and
                                              section, the FAA is charged with                        comments. It, therefore: (1) Is not a                  within 4.8 miles each side of the airport 230°
                                              prescribing regulations to assign the use               ‘‘significant regulatory action’’ under                bearing extending from the 4.8 mile radius to
                                              of airspace necessary to ensure the                     Executive Order 12866; (2) is not a                    7 miles southwest of the airport, and within
                                                                                                                                                             1.8 miles each side of the airport 055° bearing
                                              safety of aircraft and the efficient use of             ‘‘significant rule’’ under DOT                         extending from the 4.8-mile radius to 5.5
                                              airspace. This regulation is within the                 Regulatory Policies and Procedures (44                 miles northeast of the airport.
                                              scope of that authority as it establishes               FR 11034; February 26, 1979); and (3)
                                              controlled airspace at Hot Spring                       does not warrant preparation of a                         Issued in Seattle, Washington, on January
                                                                                                                                                             4, 2017.
                                              County Airport, Thermopolis, WY.                        Regulatory Evaluation as the anticipated
                                                                                                      impact is so minimal. Since this is a                  Richard Roberts,
                                              History                                                                                                        Manager, Operations Support Group, Western
                                                                                                      routine matter that only affects air traffic
                                                 On November 4, 2016, the FAA                         procedures and air navigation, it is                   Service Center.
                                              published in the Federal Register a                     certified that this rule, when                         [FR Doc. 2017–00288 Filed 1–10–17; 8:45 am]
                                              notice of proposed rulemaking (NPRM)                    promulgated, does not have a significant               BILLING CODE 4910–13–P
                                              to establish Class E airspace extending                 economic impact on a substantial
                                              upward from 700 feet above the surface                  number of small entities under the
                                              at Hot Springs County Airport,                          criteria of the Regulatory Flexibility Act.            DEPARTMENT OF STATE
                                              Thermopolis, WY. (81 FR 76886) Docket
                                              FAA–2016–8163. Interested parties                       Environmental Review                                   22 CFR Parts 35, 103, 127 and 138
                                              were invited to participate in this                        The FAA has determined that this
                                                                                                                                                             RIN 1400–AE09
                                              rulemaking effort by submitting written                 action qualifies for categorical exclusion
                                              comments on the proposal to the FAA.                                                                           Public Notice: 9828]
                                                                                                      under the National Environmental
                                              No comments were received.                              Policy Act in accordance with FAA                      2017 Civil Monetary Penalties
                                                 Class E airspace designations are                    Order 1050.1F, ‘‘Environmental                         Inflationary Adjustment
                                              published in paragraph 6005 of FAA                      Impacts: Policies and Procedures,’’
                                              Order 7400.11A, dated August 3, 2016,                   paragraph 5–6.5a. This airspace action                 AGENCY:      Department of State.
                                              and effective September 15, 2016, which                 is not expected to cause any potentially               ACTION:     Final rule.
                                              is incorporated by reference in 14 CFR                  significant environmental impacts, and
                                              part 71.1. The Class E airspace                         no extraordinary circumstances exist                   SUMMARY:   This final rule is issued to
                                              designation listed in this document will                that warrant preparation of an                         adjust the civil monetary penalties
                                              be published subsequently in the Order.                 environmental assessment.                              (CMP) for regulatory provisions
                                                                                                                                                             maintained and enforced by the
                                              Availability and Summary of                             Lists of Subjects in 14 CFR Part 71                    Department of State. The revised CMP
                                              Documents for Incorporation by
                                                                                                       Airspace, Incorporation by reference,                 adjusts the amount of civil monetary
                                              Reference
                                                                                                      Navigation (air).                                      penalties assessed by the Department of
                                                 This document amends FAA Order                                                                              State based on the December 2016
                                              7400.11A, Airspace Designations and                     Adoption of the Amendment
                                                                                                                                                             guidance from the Office of
                                              Reporting Points, dated August 3, 2016,                   In consideration of the foregoing, the               Management and Budget. The new
                                              and effective September 15, 2016. FAA                   Federal Aviation Administration                        amounts will apply only to those
                                              Order 7400.11A is publicly available as                 amends 14 CFR part 71 as follows:                      penalties assessed on or after the
                                              listed in the ADDRESSES section of this                                                                        effective date of this rule, regardless of
                                              document. FAA Order 7400.11A lists                      PART 71—DESIGNATION OF CLASS A,                        the date on which the underlying facts
                                              Class A, B, C, D, and E airspace areas,                 B, C, D, AND E AIRSPACE AREAS; AIR                     or violations occurred.
                                              air traffic service routes, and reporting               TRAFFIC SERVICE ROUTES; AND
                                                                                                                                                             DATES: This final rule is effective on
                                              points.                                                 REPORTING POINTS
                                                                                                                                                             January 11, 2017.
                                              The Rule                                                ■ 1. The authority citation for Part 71                FOR FURTHER INFORMATION CONTACT:
                                                This amendment to Title 14, Code of                   continues to read as follows:                          Alice Kottmyer, Attorney-Adviser,
                                              Federal Regulations (14 CFR) part 71                      Authority: 49 U.S.C. 106(f), 106(g); 40103,
                                                                                                                                                             Office of Management, kottmyeram@
sradovich on DSK3GMQ082PROD with RULES




                                              establishes Class E airspace extending                  40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR,           state.gov. ATTN: Regulatory Change,
                                              upward from 700 feet above the surface                  1959–1963 Comp., p. 389.                               CMP Adjustments, (202) 647–2318.
                                              within a 4.8-mile radius of the Hot                                                                            SUPPLEMENTARY INFORMATION: The
                                              Springs County Airport, Thermopolis,                    § 71.1   [Amended]                                     Federal Civil Penalties Inflation
                                              WY with segments extending to 7 miles                   ■ 2. The incorporation by reference in                 Adjustment Act of 1990, Public Law
                                              southwest of the airport, and 5.5 miles                 14 CFR 71.1 of FAA Order 7400.11A,                     101–410 (the 1990 Act), as amended by
                                              northeast of the airport. This airspace is              Airspace Designations and Reporting                    the Debt Collection Improvement Act of


                                         VerDate Sep<11>2014   15:58 Jan 10, 2017   Jkt 241001   PO 00000   Frm 00038   Fmt 4700   Sfmt 4700   E:\FR\FM\11JAR1.SGM   11JAR1


                                                               Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Rules and Regulations                                          3169

                                              1996, Public Law 104–134 (the 1996                      the Department of Justice, to pursue                   contracts, grants, and loans who use
                                              Act), required the head of each agency                  individuals or firms for false claims.                 appropriated funds to lobby the
                                              to adjust its CMPs for inflation no later               According to the June 2016 final rule,                 Executive or Legislative Branches of the
                                              than October 23, 1996 and required                      the maximum liability under the PFRCA                  federal government in connection with
                                              agencies to make adjustments at least                   is $10,781, up to a maximum of                         a specific contract, grant, or loan. Any
                                              once every four years thereafter. The                   $323,442. Applying the 2016 multiplier                 person who violates that prohibition is
                                              Federal Civil Penalties Inflation                       (1.01636) provided by OMB, the new                     subject to a civil penalty. The statute
                                              Adjustment Act Improvements Act of                      maximum liabilities are as follows:                    also requires each person who requests
                                              2015, Section 701 of Public Law 114–74                  $10,957, up to a maximum of $328,734.                  or receives a federal contract, grant,
                                              (the 2015 Act) further amended the 1990                                                                        cooperative agreement, loan, or a federal
                                                                                                      II. Part 103                                           commitment to insure or guarantee a
                                              Act by requiring agencies to adjust
                                              CMPs, if necessary, pursuant to a                          The CWC Act provided domestic                       loan, to disclose any lobbying; there is
                                              ‘‘catch-up’’ adjustment methodology                     implementation of the Convention on                    a penalty for failure to disclose.
                                              prescribed by the 2015 Act, which                       the Prohibition of the Development,                       The June 2016 final rule raised the
                                              mandated that the catch-up adjustment                   Production, Stockpiling, and Use of                    maximum penalties for both improper
                                              take effect no later than August 1, 2016.               Chemical Weapons and on Their                          expenditures and failure to disclose, to
                                              Additionally, the 2015 Act required                     Destruction. The penalty provisions of                 not less than $18,936 and not more than
                                              agencies to make annual adjustments to                  the CWC Act are codified at 22 U.S.C.                  $189,361. Applying the 2016 multiplier
                                              their respective CMPs in accordance                     6761. Based on the June 2016 final rule,               (1.01636), the new maximum penalty
                                              with guidance issued by the Office of                   a person violating 22 U.S.C.                           under 31 U.S.C. 1352 is: not less than
                                              Management and Budget (OMB).                            6761(a)(1)(A), Prohibited acts relating to             $19,246, and not more than $192,459.
                                                 Based on these statutes, the                         inspections, is subject to a civil penalty             Effective Date of Penalties
                                              Department of State (the Department)                    of an amount not to exceed $36,256 for
                                              published a final rule on June 8, 2016,                 each such violation. A person violating                   The revised CMP amounts will go into
                                                                                                      22 U.S.C. 6761(a)(1)(B), Recordkeeping                 effect on the date this rule is published.
                                              to implement the ‘‘catch-up’’ provisions
                                                                                                      violations, is subject to a civil penalty in           All violations for which CMPs are
                                              (‘‘June 2016 final rule’’). See 81 FR
                                                                                                      an amount not to exceed $7, 251 for                    assessed on or after the effective date of
                                              36791.
                                                 On December 16, 2016, OMB notified                   each such violation.                                   this rule, regardless of whether the
                                              agencies that the annual cost-of-living                    Applying the 2016 multiplier                        violation occurred before the effective
                                              adjustment multiplier for 2017, based                   (1.01636), the new maximum amounts                     date, will be assessed at the adjusted
                                              on the Consumer Price Index, is                         are as follows: Prohibited acts related to             penalty level.
                                              1.01636. Additional information may be                  inspections, $36,849; for Recordkeeping                Future Adjustments and Reporting
                                              found in OMB Memorandum M–17–11,                        violations, $7,370.
                                                                                                                                                                The 2015 Act directed agencies to
                                              which can be found at https://                          III. Part 127                                          undertake an annual review of CMPs
                                              www.whitehouse.gov/sites/default/files/                                                                        using a formula prescribed by the
                                              omb/memoranda/2017/m-17-11_0.pdf.                          The Assistant Secretary of State for
                                                                                                      Political-Military Affairs is responsible              statute. Annual adjustments to CMPs are
                                              This final rule amends Department                                                                              made in accordance with the guidance
                                              CMPs for fiscal year 2017.                              for the imposition of CMPs under the
                                                                                                      International Traffic in Arms                          issued by OMB. As in this rulemaking,
                                                 Within the Department of State (Title                                                                       the Department of State will publish
                                              22, Code of Federal Regulations), this                  Regulations (ITAR), which is
                                                                                                      administered by the Directorate of                     notification of annual inflation
                                              rule affects four areas:                                                                                       adjustments to CMPs in the Federal
                                                 (1) Part 35, which implements the                    Defense Trade Controls (DDTC).
                                                                                                         (1) AECA section 38(e):                             Register no later than January 15 of each
                                              Program Fraud Civil Remedies Act of                                                                            year, with the adjusted amount taking
                                              1986 (PFCRA), codified at 31 U.S.C.                        According to the June 2016 final rule,
                                                                                                      the new maximum penalty under 22                       effect immediately upon publication.
                                              3801–3812;
                                                 (2) Part 103, which implements the                   U.S.C. 2778(e), or Section 38(e) of the                Regulatory Analysis and Notices
                                              Chemical Weapons Convention                             AECA, is $1,094,010 per violation.
                                                                                                      Applying the 2016 multiplier (1.01636),                Administrative Procedure Act
                                              Implementation Act of 1998 (CWC Act);
                                                 (3) Part 127, which implements the                   the new maximum penalty is                               The Department of State is publishing
                                              penalty provisions of sections 38(e),                   $1,111,908.                                            this rule using the ‘‘good cause’’
                                              39A(c), and 40(k) of the Arms Export                       (2) AECA section 39A(c):                            exception to the Administrative
                                              Control Act (AECA) (22 U.S.C. 2778(e),                     According to the June 2016 final rule,              Procedure Act (5 U.S.C. 553(b)), as the
                                              2779a(c), 2780(k)); and                                 the new maximum adjusted penalty for                   Department has determined that public
                                                 (4) Part 138, which implements                       22 U.S.C. 2779a(c), or Section 39A(c) of               comment on this rulemaking would be
                                              Section 319 of Public Law 101–121,                      the AECA, is $795,445 per violation.                   impractical, unnecessary, or contrary to
                                              codified at 31 U.S.C. 1352, and prohibits               Applying the 2016 multiplier (1.01636),                the public interest. This rulemaking is
                                              recipients of federal contracts, grants,                the new maximum penalty is $808,458.                   mandatory; it implements Public Law
                                              and loans from using appropriated                          (3) AECA section 40(k):                             114–74.
                                                                                                         According to the June 2016 final rule,
                                              funds for lobbying the Executive or                                                                            Regulatory Flexibility Act
                                                                                                      the maximum penalty for 22 U.S.C.
                                              Legislative Branches of the federal
                                                                                                      2780(k), or Section 40(k) of the AECA,                    Because this rulemaking is exempt
                                              government in connection with a
                                                                                                      is $946,805 per violation. Applying the                from Section 553 of the Administrative
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                                              specific contract.
                                                                                                      2016 multiplier (1.01636), the new                     Procedures Act, a Regulatory Flexibility
                                              Specific Changes to 22 CFR Made by                      maximum penalty is $962,295.                           Analysis is not required.
                                              This Rule
                                                                                                      IV. Part 138                                           Unfunded Mandates Reform Act of 1995
                                              I. Part 35                                                Section 319 of Public Law 101–121,                     This rule does not involve a mandate
                                                The PFRCA, enacted in 1986,                           codified at 31 U.S.C. 1352, provides                   that will result in the expenditure by
                                              authorizes agencies, with approval from                 penalties for recipients of federal                    State, local, and tribal governments, in


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                                              3170             Federal Register / Vol. 82, No. 7 / Wednesday, January 11, 2017 / Rules and Regulations

                                              the aggregate, or by the private sector, of             22 CFR Part 103                                        § 127.10    [Amended]
                                              $100 million or more in any year and it                                                                        ■  6. Section 127.10 is amended as
                                                                                                        Administrative practice and
                                              will not significantly or uniquely affect                                                                      follows:
                                                                                                      procedure, Chemicals, Classified
                                              small governments. Therefore, no                                                                               ■ a. In paragraph (a)(1)(i), remove
                                                                                                      information, Foreign relations, Freedom
                                              actions were deemed necessary under                                                                            ‘‘$1,094,010’’ and add in its place
                                                                                                      of information, International
                                              the provisions of the Unfunded                                                                                 ‘‘$1,111,908’’;
                                                                                                      organization, Investigations, Penalties,
                                              Mandates Reform Act of 1995.                                                                                   ■ b. In paragraph (a)(1)(ii), remove
                                                                                                      Reporting and recordkeeping
                                              Small Business Regulatory Enforcement                   requirements.                                          ‘‘$795,445’’ and add in its place
                                              Fairness Act of 1996                                                                                           ‘‘$808,458’’; and
                                                                                                      22 CFR Part 127                                        ■ c. In paragraph (a)(1)(iii), remove
                                                This rule has been found not to be a                                                                         ‘‘$946,805’’ and add in its place
                                                                                                          Arms and munitions, Exports.
                                              major rule within the meaning of the                                                                           ‘‘962,295.’’
                                              Small Business Regulatory Enforcement                   22 CFR Part 138
                                              Fairness Act of 1996.                                     Government contracts, Grant                          PART 138—RESTRICTIONS ON
                                                                                                      programs, Loan programs, Lobbying,                     LOBBYING
                                              Executive Orders 12372 and 13132
                                                                                                      Penalties, Reporting and recordkeeping                 ■ 7. The authority citation for part 138
                                                 This amendment will not have
                                                                                                      requirements.                                          continues to read as follows:
                                              substantial direct effects on the States,
                                              on the relationship between the national                  For the reasons set forth above, 22                    Authority: 22 U.S.C. 2651a; 31 U.S.C.
                                              government and the States, or on the                    CFR parts 35, 103, 127, and 138 are                    1352; Pub. L. 114–74, 129 Stat. 584.
                                              distribution of power and                               amended as follows:                                    ■ 8. Revise the heading of part 138 to
                                              responsibilities among the various                                                                             read as set forth above.
                                              levels of government. Therefore, in                     PART 35—PROGRAM FRAUD CIVIL
                                              accordance with Executive Order 13132,                  REMEDIES                                               § 138.400   [Amended]
                                              it is determined that this amendment                    ■ 1. The authority citation for part 35                ■  9. Amend § 138.400 by removing
                                              does not have sufficient federalism                     continues to read as follows:                          ‘‘$18,936’’ and ‘‘$189,361’’ and adding
                                              implications to require consultations or                                                                       in their place ‘‘$19,246’’ and
                                              warrant the preparation of a federalism                    Authority: 22 U.S.C. 2651a; 31 U.S.C. 3801
                                                                                                      et seq.; Pub. L. 114–74, 129 Stat. 584.
                                                                                                                                                             ‘‘$192,459’’, respectively, wherever they
                                              summary impact statement.                                                                                      occur.
                                              Executive Orders 12866 and 13563                        § 35.3    [Amended]                                       Dated: January 4, 2017.
                                                The Department believes that benefits                 ■ 2. In § 35.3:                                        Alicia Frechette,
                                              of the rulemaking outweigh any costs,                   ■ a. Remove ‘‘$10,781’’ and add in its                 Executive Director, Office of the Legal Adviser
                                              and there are no feasible alternatives to               place ‘‘$10,957’’, wherever it occurs.                 & Bureau of Legislative Affairs, Department
                                                                                                      ■ b. In paragraph (f), remove ‘‘$323,442’’             of State.
                                              this rulemaking. It is the Department’s
                                                                                                      and add in its place ‘‘$328,734’’.                     [FR Doc. 2017–00166 Filed 1–10–17; 8:45 am]
                                              position that this rulemaking is not an
                                              economically significant rule under the                                                                        BILLING CODE 4710–08–P

                                              criteria of Executive Order 12866, and is               PART 103—REGULATIONS FOR
                                              consistent with the provisions of                       IMPLEMENTATION OF THE CHEMICAL
                                              Executive Order 13563.                                  WEAPONS CONVENTION AND THE                             EQUAL EMPLOYMENT OPPORTUNITY
                                                                                                      CHEMICAL WEAPONS CONVENTION                            COMMISSION
                                              Executive Order 12988                                   IMPLEMENTATION ACT OF 1998 ON
                                                The Department of State has reviewed                  THE TAKING OF SAMPLES AND ON                           29 CFR Part 1614
                                              the proposed amendment in light of                      ENFORCEMENT OF REQUIREMENTS                            RIN 3046–AA94
                                              Executive Order 12988 to eliminate                      CONCERNING RECORDKEEPING AND
                                              ambiguity, minimize litigation, establish               INSPECTIONS                                            Affirmative Action for Individuals With
                                              clear legal standards, and reduce                                                                              Disabilities in Federal Employment;
                                                                                                      ■ 3. The authority citation for part 103               Correction
                                              burden.
                                                                                                      continues to read as follows:
                                              Executive Order 13175                                      Authority: 22 U.S.C. 2651a; 22 U.S.C. 6701          AGENCY:  Equal Employment
                                                                                                      et seq.; Pub. L. 114–74, 129 Stat. 584.                Opportunity Commission.
                                                The Department of State has
                                              determined that this rulemaking will                                                                           ACTION: Final rule; correction.
                                                                                                      § 103.6    [Amended]
                                              not have tribal implications, will not                                                                         SUMMARY:   The Equal Employment
                                              impose substantial direct compliance                    ■  4. Amend § 103.6 to remove
                                                                                                      ‘‘$36,256’’ and add in its place                       Opportunity Commission (EEOC or
                                              costs on Indian tribal governments, and                                                                        Commission) is correcting a final rule
                                              will not preempt tribal law.                            ‘‘$36,849’’ in paragraph (a)(1), and to
                                                                                                      remove ‘‘$7,251’’ and add in its place                 that appeared in the Federal Register of
                                              Accordingly, Executive Order 13175                                                                             January 3, 2017 (82 FR 654). The
                                              does not apply to this rulemaking.                      ‘‘$7,370’’ in paragraph (a)(2).
                                                                                                                                                             document amended the regulations that
                                              Paperwork Reduction Act                                 PART 127—VIOLATIONS AND                                require federal agencies to engage in
                                                                                                      PENALTIES                                              affirmative action for individuals with
                                                This rulemaking does not impose or
                                                                                                                                                             disabilities, clarifying the obligations
                                              revise any information collections
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                                                                                                      ■ 5. The authority citation for part 127               that the Rehabilitation Act of 1973
                                              subject to 44 U.S.C. Chapter 35.
                                                                                                      continues to read as follows:                          imposes on federal agencies, as
                                              List of Subjects                                          Authority: Sections 2, 38, and 42, Pub. L.
                                                                                                                                                             employers, that are over and above the
                                                                                                      90–629, 90 Stat. 744 (22 U.S.C. 2752, 2778,            obligation not to discriminate on the
                                              22 CFR Part 35
                                                                                                      2791); 22 U.S.C. 401; 22 U.S.C. 2651a; 22              basis of disability. The document
                                                Administrative practice and                           U.S.C. 2779a; 22 U.S.C. 2780; E.O. 13637, 78           published January 3 neglected to
                                              procedure, Claims, Fraud, Penalties.                    FR 16129; Pub. L. 114–74, 129 Stat. 584.               indicate its effective date. This


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Document Created: 2018-02-01 14:59:27
Document Modified: 2018-02-01 14:59:27
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
ActionFinal rule.
DatesThis final rule is effective on January 11, 2017.
ContactAlice Kottmyer, Attorney-Adviser, Office of Management, [email protected] ATTN: Regulatory Change, CMP Adjustments, (202) 647-2318.
FR Citation82 FR 3168 
RIN Number1400-AE09
CFR Citation22 CFR 103
22 CFR 127
22 CFR 138
22 CFR 35
CFR AssociatedChemicals; Classified Information; Foreign Relations; Freedom of Information; International Organization; Investigations; Reporting and Recordkeeping Requirements; Arms and Munitions; Exports; Government Contracts; Grant Programs; Loan Programs; Lobbying; Administrative Practice and Procedure; Claims; Fraud and Penalties

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