82 FR 48760 - Implementation of the Federal Civil Penalties Inflation Adjustment Act and Adjustment of Amounts for 2017

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Federal Register Volume 82, Issue 202 (October 20, 2017)

Page Range48760-48762
FR Document2017-22847

The National Aeronautics and Space Administration (NASA) has adopted as final the interim final rule concerning adjustments to civil monetary penalties within its jurisdiction for inflation. The interim rule was published on June 26, 2017, and applied a new methodology to calculate civil monetary penalties as mandated by the Federal Civil Penalties Adjustment Act Improvements Act of 2015, starting with an initial adjustment to previous unadjusted penalty amounts. The changes in the interim final rule made final by this rule are effective October 20, 2017 and applicable as of August 25, 2017. In addition, this final rule provides for 2017 inflation adjustments of monetary penalties amounts required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.

Federal Register, Volume 82 Issue 202 (Friday, October 20, 2017)
[Federal Register Volume 82, Number 202 (Friday, October 20, 2017)]
[Rules and Regulations]
[Pages 48760-48762]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-22847]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

14 CFR Parts 1264 and 1271

RIN 2700-AE30
[Document Number NASA-17-071: Docket Number-NASA-2017-0004]


Implementation of the Federal Civil Penalties Inflation 
Adjustment Act and Adjustment of Amounts for 2017

AGENCY: National Aeronautics and Space Administration.

[[Page 48761]]


ACTION: Final rule.

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SUMMARY: The National Aeronautics and Space Administration (NASA) has 
adopted as final the interim final rule concerning adjustments to civil 
monetary penalties within its jurisdiction for inflation. The interim 
rule was published on June 26, 2017, and applied a new methodology to 
calculate civil monetary penalties as mandated by the Federal Civil 
Penalties Adjustment Act Improvements Act of 2015, starting with an 
initial adjustment to previous unadjusted penalty amounts. The changes 
in the interim final rule made final by this rule are effective October 
20, 2017 and applicable as of August 25, 2017. In addition, this final 
rule provides for 2017 inflation adjustments of monetary penalties 
amounts required by the Federal Civil Penalties Inflation Adjustment 
Act Improvements Act of 2015.

DATES: 
    Effective: This final rule is effective October 20, 2017.
    Applicable: This final rule is applicable as of August 25, 2017.

FOR FURTHER INFORMATION CONTACT: Bryan R. Diederich, Office of the 
General Counsel, NASA Headquarters, telephone (202) 358-0216.

SUPPLEMENTARY INFORMATION:

I. Background

A. The June 26, 2017, Interim Rule

    The Inflation Adjustment Act, as amended by the 2015 Act, requires 
Federal agencies to adjust the civil penalty amounts within their 
jurisdiction for inflation by July 1, 2016, and then by January 15 
every year thereafter.\1\ Agencies must make the initial 2016 
adjustments through an interim final rulemaking published in the 
Federal Register.\2\ Under the amended Act, any increase in a civil 
penalty made under the Act will apply to penalties assessed after the 
increase takes effect, including penalties whose associated violation 
predated the increase.\3\ The inflation adjustments mandated by the Act 
serve to maintain the deterrent effect of civil penalties and to 
promote compliance with the law.
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    \1\ See 28 U.S.C. 2461 note.
    \2\ The statute also provides that, for the initial 2016 
adjustment, an agency may adjust a civil penalty by less than the 
otherwise required amount if (1) it determines, after publishing a 
notice of proposed rulemaking and providing an opportunity for 
comment, that increasing the civil penalty by the otherwise required 
amount would have a negative economic impact or that the social 
costs of increasing the civil penalty by the otherwise required 
amount outweigh the benefits, and (2) the Director of the Office of 
Management and Budget concurs with that determination. Inflation 
Adjustment Act section 4(c), codified at 28 UUSC 2461 note. NASA has 
chosen not to make use of this exception.
    \3\ Inflation Adjustment Act section 6, codified at 28 U.S.C. 
2461 note.
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    On June 26, 2017, NASA published its interim final rule providing 
for the initial adjustment called for under the Act.\4\ The public 
comment period interim final rule closed on August 24, 2016, and the 
rule became effective on August 25, 2017. NASA received no comments on 
the interim final rule.
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    \4\ 82 FR 28760.
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B. 2017 Inflation Adjustment

    After the initial adjustment, the Act requires agencies to make 
subsequent annual adjustments for inflation ``notwithstanding section 
553 of title 5, United States Code.'' Section 553 refers to the 
Administrative Procedure Act, which might otherwise require a delay for 
advance notice and opportunity for public comments on future annual 
inflation adjustments. The first of these subsequent adjustments is for 
2017. Because of a delay in publishing NASA's 2016 inflation 
adjustments as an interim final rule, the time for making the 2017 
adjustment was reached while NASA was in the process of publishing its 
2016 adjustments. Accordingly, in adopting as final the interim rule 
published on June 26, 2017, NASA is adjusting the penalty amounts to 
reflect the 2017 adjustments required by law.
    The 2017 annual adjustments are based on the percent change between 
the U.S. Department of Labor's Consumer Price Index for All Urban 
Consumers (``CPI-U'') for the month of October preceding the date of 
the adjustment, and the CPI-U for October of the prior year (28 U.S.C. 
2461 note, section (5)(b)(1)). Based on that formula, the cost-of-
living adjustment multiplier for 2017 is 1.01636. Pursuant to the 2015 
Act, adjustments are rounded to the nearest dollar.

II. The Final Rule

    This rule makes final the interim final rule published June 26, 
2017. In addition, this rule makes the required 2017 inflation 
adjustment. These adjusted amounts are reflected in the following 
table.

----------------------------------------------------------------------------------------------------------------
                                                                                                      Penalty
                                                                                    Penalty in      reflecting
                      Law                              Penalty description         June 26, 2017       2017
                                                                                   interim rule     adjustment
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Program Fraud Civil Remedies Act of 1986......  Maximum Penalties for False              $10,781         $10,957
                                                 Claims.
Department of the Interior and Related          Minimum Penalty for use of                18,936          19,246
 Agencies Appropriations Act of 1989, Public     appropriated funds to lobby or
 Law 101-121, sec. 319.                          influence certain contracts.
Department of the Interior and Related          Maximum Penalty for use of               189,361         192,459
 Agencies Appropriations Act of 1989, Public     appropriated funds to lobby or
 Law 101-121, sec. 319.                          influence certain contracts.
Department of the Interior and Related          Minimum penalty for failure to            18,936          19,246
 Agencies Appropriations Act of 1989, Public     report certain lobbying
 Law 101-121, sec. 319.                          transactions.
Department of the Interior and Related          Maximum penalty for failure to           189,361         192,459
 Agencies Appropriations Act of 1989, Public     report certain lobbying
 Law 101-121, sec. 319.                          transactions.
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    This rule codifies these civil penalty amounts by amending parts 
1264 and 1271 of title 14 of the CFR.

III. Legal Authority and Effective Date

    NASA issues this rule under the Federal Civil Penalties Inflation 
Adjustment Act of 1990,\5\ as amended by the Debt Collection 
Improvement Act of 1996,\6\ and further amended by the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015,\7\ which 
requires NASA to adjust the civil penalties within its jurisdiction for 
inflation according to a statutorily prescribed formula.
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    \5\ Public Law 101-410, 104 Stat. 890 (1990).
    \6\ Public Law 104-134, section 31001(s)(1), 110 Stat. 1321, 
1321-373 (1996).
    \7\ Public Law 114-74, section 701, 129 Stat. 584, 599 (2015).
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    The Administrative Procedure Act (APA) generally requires an agency 
to publish a rule at least 30 days before its effective date.\8\ NASA's 
publication of the June 26, 2017, interim final rule met

[[Page 48762]]

this requirement. As explained above, the adjustments required for 
years subsequent to 2017 are not subject to the requirements of the 
Administrative Procedure Act. Moreover, the 2017 adjustments are made 
according to a statutory formula that does not provide for agency 
discretion. Accordingly, a delay in effectiveness of the 2017 
adjustments is not required.
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    \8\ See 5 U.S.C. 533(d).
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IV. Regulatory Requirements

Regulatory Flexibility Act

    Because no notice of proposed rulemaking is required, the 
Regulatory Flexibility Act does not require an initial or final 
regulatory flexibility analysis.\9\
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    \9\ 5 U.S.C. 603(a), 604(a).
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Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995,\10\ NASA 
reviewed this interim final rule. No collections of information 
pursuant to the Paperwork Reduction Act are contained in the interim 
final rule.
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    \10\ 44 U.S.C. 3506.
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List of Subjects in 14 CFR Parts 1264 and 1271

    Claims, Lobbying, Penalties.

    For the reasons stated in the preamble, the National Aeronautics 
and Space Administration adopts as final the interim rule amending 14 
CFR parts 1264 and 1271 which published on June 26, 2017, at 82 FR 
28760, with the following changes:

PART 1264--IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL PENALTIES ACT 
OF 1986

0
1. The authority citation for part 1264 continues to read as follows:

    Authority: 31 U.S.C. 3809, 51 U.S.C. 20113(a).


Sec.  1264.102   [Amended]

0
2. In Sec.  1264.102, paragraphs (a) and (b), remove the number 
``$10,781'' and add in its place the number ``$10,957.''

PART 1271--NEW RESTRICTIONS ON LOBBYING

0
3. The authority citation for part 1271 continues to read as follows:

    Authority: Section 319, Pub. L. 101-121 (31 U.S.C. 1352); Pub. 
L. 97-258 (31 U.S.C. 6301 et seq.)


Sec.  1271.400  [Amended]

0
4. In Sec.  1271.400:
0
a. In paragraphs (a) and (b) remove the words ``not less than $18,936 
and not more than $189,361'' and add in their place the words ``not 
less than $19,246 and not more than $192,459.''
0
b. In paragraph (e), remove the two occurrences of ``$18,936'' and add 
in their place ``$19,246'' and remove ``189,361'' and add in its place 
``$192,459''.

Appendix A to Part 1271 [Amended]

0
5. In appendix A to part 1271, in the paragraph following paragraph (3) 
and in the last paragraph of the appendix, remove the words ``not less 
than $18,936 and not more than $189,361'' and add in their place the 
words ``not less than $19,246 and not more than $192,459''.

Nanette J. Smith,
NASA Federal Register Liaison Officer.
[FR Doc. 2017-22847 Filed 10-19-17; 8:45 am]
BILLING CODE P


Current View
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.
DatesEffective: This final rule is effective October 20, 2017.
ContactBryan R. Diederich, Office of the General Counsel, NASA Headquarters, telephone (202) 358-0216.
FR Citation82 FR 48760 
RIN Number2700-AE30
CFR Citation14 CFR 1264
14 CFR 1271
CFR AssociatedClaims; Lobbying and Penalties

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