82 FR 6248 - Civil Monetary Penalty Inflation Adjustment

DEPARTMENT OF DEFENSE
Office of the Secretary

Federal Register Volume 82, Issue 12 (January 19, 2017)

Page Range		6248-6250
FR Document		2017-00619

This final rule is being issued to adjust for inflation each civil monetary penalty (CMP) provided by law within the jurisdiction of the United States Department of Defense (Department of Defense). The Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 Act), requires the head of each agency to adjust for inflation its CMP levels in effect as of November 2, 2015, under a revised methodology that was effective for 2016 and for each year thereafter.

Federal Register, Volume 82 Issue 12 (Thursday, January 19, 2017)

[Federal Register Volume 82, Number 12 (Thursday, January 19, 2017)]
[Rules and Regulations]
[Pages 6248-6250]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-00619]


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DEPARTMENT OF DEFENSE

Office of the Secretary

32 CFR Part 269

[Docket ID: DOD-2016-OS-0045]
RIN 0790-ZA12


Civil Monetary Penalty Inflation Adjustment

AGENCY: Under Secretary of Defense (Comptroller), Department of 
Defense.

ACTION: Final rule.

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

SUMMARY: This final rule is being issued to adjust for inflation each 
civil monetary penalty (CMP) provided by law within the jurisdiction of 
the United States Department of Defense (Department of Defense). The 
Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by 
the Debt Collection Improvement Act of 1996 and the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 
Act), requires the head of each agency to adjust for inflation its CMP 
levels in effect as of November 2, 2015, under a revised methodology 
that was effective for 2016 and for each year thereafter.

DATES: This rule is effective January 19, 2017 and is applicable 
beginning on January 13, 2017.

FOR FURTHER INFORMATION CONTACT: Brian Banal, 703-571-1652.

SUPPLEMENTARY INFORMATION:

Background Information

    The Federal Civil Penalties Inflation Adjustment Act of 1990, 
Public Law 101-410, 104 Stat. 890 (28 U.S.C. 2461, note), as amended by 
the Debt Collection Improvement Act of 1996, Public Law 104-134, April 
26, 1996, and further amended by the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015 (the 2015 Act), Public Law 114-
74, November 2, 2015, required agencies to annually adjust the level of 
CMPs for inflation to improve their effectiveness and maintain their 
deterrent effect. The 2015 Act required that not later than July 1, 
2016, and not later than January 15 of every year thereafter, the head 
of each agency must adjust each CMP within its jurisdiction by the 
inflation adjustment described in the 2015 Act. The inflation 
adjustment is determined by increasing the maximum CMP or the range of 
minimum and maximum CMPs, as applicable, for each CMP by the cost-of-
living adjustment, rounded to the nearest multiple of $1. The cost-of-
living adjustment is the percentage (if any) for each CMP by which the 
Consumer Price Index (CPI) for the month of October preceding the date 
of the adjustment (January 15), exceeds the CPI for the month of 
October in the previous calendar year.
    The initial catch up adjustments for inflation to the Department of 
Defense's CMPs were published as an interim final rule in the Federal 
Register on May 26, 2016 (81 FR 33389-33391) and became effective on 
that date. The interim final rule was published as a final rule without 
change on September 12, 2016 (81 FR 62629-62631), effective that date. 
The revised methodology for agencies for 2017 and each year thereafter 
provides for the improvement of the effectiveness of CMPs and to 
maintain their deterrent effect. Effective 2017, agencies' annual 
adjustments for inflation to CMPs shall take effect not later than 
January 15. The Department of Defense is adjusting the level of all 
civil monetary penalties under its jurisdiction by the Office of 
Management and Budget (OMB) directed cost-of-living adjustment 
multiplier for 2017 of 1.01636 prescribed in OMB Memorandum M-17-11, 
``Implementation of the 2017

[[Page 6249]]

annual adjustment pursuant to the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015,'' dated December 16, 2016. The 
Department of Defense's 2017 adjustments for inflation to CMPs apply 
only to those CMPs, including those whose associated violation predated 
such adjustment, which are assessed by the Department of Defense after 
the effective date of the new CMP level.

Statement of Authority and Costs and Benefits

    Pursuant to 5 U.S.C. 553(b)B, there is good cause to issue this 
rule without prior public notice or opportunity for public comment 
because it would be impracticable and unnecessary. The Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015 (Section 
701(b)) requires agencies, effective 2017, to make annual adjustments 
for inflation to CMPs notwithstanding section 553 of title 5, United 
States Code. Additionally, the methodology used, effective 2017, for 
adjusting CMPs for inflation is established in statute, with no 
discretion provided to agencies regarding the substance of the 
adjustments for inflation to CMPs. The Department of Defense is charged 
only with performing ministerial computations to determine the dollar 
amount of adjustments for inflation to CMPs.
    Further, there are no significant costs associated with the 
regulatory revisions that would impose any mandates on the Department 
of Defense, Federal, State or local governments, or the private sector. 
Accordingly, prior public notice and an opportunity for public comment 
are not required for this rule. The benefit of this rule is the 
Department of Defense anticipates that civil monetary penalty 
collections may increase in the future due to new penalty authorities 
and other changes in this rule. However, it is difficult to accurately 
predict the extent of any increase, if any, due to a variety of 
factors, such as budget and staff resources, the number and quality of 
civil penalty referrals or leads, and the length of time needed to 
investigate and resolve a case.

Regulatory Procedures

Executive Order 12866, ``Regulatory Planning and Review'' and Executive 
Order 13563, ``Improving Regulation and Regulatory Review''

    Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distribute impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This rule has not been designated a ``significant 
regulatory action,'' because it does not: (1) Have an annual effect on 
the economy of $100 million or more or adversely affect in a material 
way the economy; a section of the economy; productivity; competition; 
jobs; the environment; public health or safety; or State, local, or 
tribal governments or communities; (2) create a serious inconsistency 
or otherwise interfere with an action taken or planned by another 
Agency; (3) materially alter the budgetary impact of entitlements, 
grants, user fees, or loan programs, or the rights and obligations of 
recipients thereof; or (4) raise novel legal or policy issues arising 
out of legal mandates, the President's priorities, or the principles 
set forth in these Executive Orders.

Unfunded Mandates Reform Act (2 U.S.C. Chapter 25)

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) (2 
U.S.C. 1532) requires agencies to assess anticipated costs and benefits 
before issuing any rule the mandates of which require spending in any 
year of $100 million in 1995 dollars, updated annually for inflation. 
In 2016, that threshold is approximately $146 million. This rule will 
not mandate any requirements for State, local, or tribal governments, 
nor will it affect private sector costs.

Public Law 96-354, ``Regulatory Flexibility Act'' (5 U.S.C. Chapter 6)

    Because notice of proposed rulemaking and opportunity for comment 
are not required pursuant to 5 U.S.C. 553, or any other law, the 
analytical requirements of the Regulatory Flexibility Act (5 U.S.C. 
601, et seq.) are inapplicable. Therefore, a regulatory flexibility 
analysis is not required and has not been prepared.

Public Law 96-511, ``Paperwork Reduction Act'' (44 U.S.C. Chapter 35)

    The Department of Defense determined that provisions of the 
Paperwork Reduction Act of 1995, Public Law 104-13, 44 U.S.C. Chapter 
35, and its implementing regulations, 5 CFR part 1320, do not apply to 
this rule because there are no new or revised recordkeeping or 
reporting requirements.

Executive Order 13132, ``Federalism''

    Executive Order 13132 establishes certain requirements that an 
agency must meet when it promulgates a rule that imposes substantial 
direct requirement costs on State and local governments, preempts State 
law, or otherwise has Federalism implications. This final rule will not 
have a substantial effect on State and local governments.

List of Subjects in 32 CFR Part 269

    Administrative practice and procedure, Penalties.

    Accordingly, 32 CFR part 269 is amended as follows.

PART 269--[AMENDED]

0
1. The authority citation for 32 CFR part 269 continues to read as 
follows:

    Authority: 28 U.S.C. 2461 note.

0
2. Revise Sec.  269.4(d) to read as follows:


Sec.  269.4  Cost of living adjustments of civil monetary penalties.

* * * * *
    (d) Inflation adjustment. Maximum civil monetary penalties within 
the jurisdiction of the Department are adjusted for inflation as 
follows:

----------------------------------------------------------------------------------------------------------------
                                                                                      Maximum      New Adjusted
              United States Code                     Civil Monetary Penalty       Penalty Amount      Maximum
                                                           Description            as of 05/26/16  Penalty Amount
----------------------------------------------------------------------------------------------------------------
National Defense Authorization Act for FY       Unauthorized Activities Directed        $124,588         126,626
 2005, 10 U.S.C 113, note.                       at or Possession of Sunken
                                                 Military Craft.
10 U.S.C. 1094(c)(1)..........................  Unlawful Provision of Health              10,940          11,119
                                                 Care.
10 U.S.C. 1102(k).............................  Wrongful Disclosure--Medical
                                                 Records.
                                                  First Offense                            6,469           6,575
                                                  Subsequent Offense                      43,126          43,832

[[Page 6250]]

 
10 U.S.C. 2674(c)(2)..........................  Violation of the Pentagon                  1,782           1,811
                                                 Reservation Operation and
                                                 Parking of Motor Vehicles Rules
                                                 and Regulations.
31 U.S.C. 3802(a)(1)..........................  Violation Involving False Claim.          10,781          10,957
31 U.S.C. 3802(a)(2)..........................  Violation Involving False                 10,781          10,957
                                                 Statement.
----------------------------------------------------------------------------------------------------------------


    Dated: January 9, 2017.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[FR Doc. 2017-00619 Filed 1-18-17; 8:45 am]
 BILLING CODE 5001-06-P

Federal Register / Vol. 82, No. 12 / Thursday, January 19, 2017 / Rules and Regulations 6249

annual adjustment pursuant to the Regulatory Procedures Public Law 96–354, ‘‘Regulatory
Federal Civil Penalties Inflation Flexibility Act’’ (5 U.S.C. Chapter 6)
Executive Order 12866, ‘‘Regulatory
Adjustment Act Improvements Act of
Planning and Review’’ and Executive Because notice of proposed
2015,’’ dated December 16, 2016. The
Order 13563, ‘‘Improving Regulation rulemaking and opportunity for
Department of Defense’s 2017
and Regulatory Review’’ comment are not required pursuant to 5
adjustments for inflation to CMPs apply
U.S.C. 553, or any other law, the
only to those CMPs, including those Executive Orders 13563 and 12866 analytical requirements of the
whose associated violation predated direct agencies to assess all costs and Regulatory Flexibility Act (5 U.S.C. 601,
such adjustment, which are assessed by benefits of available regulatory et seq.) are inapplicable. Therefore, a
the Department of Defense after the alternatives and, if regulation is regulatory flexibility analysis is not
effective date of the new CMP level. necessary, to select regulatory required and has not been prepared.
Statement of Authority and Costs and approaches that maximize net benefits
Benefits (including potential economic, Public Law 96–511, ‘‘Paperwork
environmental, public health and safety Reduction Act’’ (44 U.S.C. Chapter 35)
Pursuant to 5 U.S.C. 553(b)B, there is
effects, distribute impacts, and equity). The Department of Defense
good cause to issue this rule without
Executive Order 13563 emphasizes the determined that provisions of the
prior public notice or opportunity for
public comment because it would be importance of quantifying both costs Paperwork Reduction Act of 1995,
impracticable and unnecessary. The and benefits, of reducing costs, of Public Law 104–13, 44 U.S.C. Chapter
Federal Civil Penalties Inflation harmonizing rules, and of promoting 35, and its implementing regulations, 5
Adjustment Act Improvements Act of flexibility. This rule has not been CFR part 1320, do not apply to this rule
2015 (Section 701(b)) requires agencies, designated a ‘‘significant regulatory because there are no new or revised
effective 2017, to make annual action,’’ because it does not: (1) Have an recordkeeping or reporting
adjustments for inflation to CMPs annual effect on the economy of $100 requirements.
notwithstanding section 553 of title 5, million or more or adversely affect in a
material way the economy; a section of Executive Order 13132, ‘‘Federalism’’
United States Code. Additionally, the
methodology used, effective 2017, for the economy; productivity; competition; Executive Order 13132 establishes
adjusting CMPs for inflation is jobs; the environment; public health or certain requirements that an agency
established in statute, with no safety; or State, local, or tribal must meet when it promulgates a rule
discretion provided to agencies governments or communities; (2) create that imposes substantial direct
regarding the substance of the a serious inconsistency or otherwise requirement costs on State and local
adjustments for inflation to CMPs. The interfere with an action taken or governments, preempts State law, or
Department of Defense is charged only planned by another Agency; (3) otherwise has Federalism implications.
with performing ministerial materially alter the budgetary impact of This final rule will not have a
computations to determine the dollar entitlements, grants, user fees, or loan substantial effect on State and local
amount of adjustments for inflation to programs, or the rights and obligations governments.
CMPs. of recipients thereof; or (4) raise novel
legal or policy issues arising out of legal List of Subjects in 32 CFR Part 269
Further, there are no significant costs
associated with the regulatory revisions mandates, the President’s priorities, or Administrative practice and
that would impose any mandates on the the principles set forth in these procedure, Penalties.
Department of Defense, Federal, State or Executive Orders. Accordingly, 32 CFR part 269 is
local governments, or the private sector. Unfunded Mandates Reform Act (2 amended as follows.
Accordingly, prior public notice and an U.S.C. Chapter 25)
opportunity for public comment are not PART 269—[AMENDED]
required for this rule. The benefit of this Section 202 of the Unfunded
rule is the Department of Defense Mandates Reform Act of 1995 (UMRA) ■ 1. The authority citation for 32 CFR
anticipates that civil monetary penalty (2 U.S.C. 1532) requires agencies to part 269 continues to read as follows:
collections may increase in the future assess anticipated costs and benefits Authority: 28 U.S.C. 2461 note.
due to new penalty authorities and before issuing any rule the mandates of ■ 2. Revise § 269.4(d) to read as follows:
other changes in this rule. However, it which require spending in any year of
is difficult to accurately predict the $100 million in 1995 dollars, updated § 269.4 Cost of living adjustments of civil
extent of any increase, if any, due to a annually for inflation. In 2016, that monetary penalties.
variety of factors, such as budget and threshold is approximately $146 * * * * *
staff resources, the number and quality million. This rule will not mandate any (d) Inflation adjustment. Maximum
of civil penalty referrals or leads, and requirements for State, local, or tribal civil monetary penalties within the
the length of time needed to investigate governments, nor will it affect private jurisdiction of the Department are
and resolve a case. sector costs. adjusted for inflation as follows:

Maximum New Adjusted
Civil Monetary Penalty Penalty Maximum
United States Code Description Amount as of Penalty
05/26/16 Amount
asabaliauskas on DSK3SPTVN1PROD with RULES

National Defense Authorization Act for FY 2005, 10 Unauthorized Activities Directed at or Possession of $124,588 126,626
U.S.C 113, note. Sunken Military Craft.
10 U.S.C. 1094(c)(1) .................................................... Unlawful Provision of Health Care ............................... 10,940 11,119
10 U.S.C. 1102(k) ......................................................... Wrongful Disclosure—Medical Records .......................
First Offense ............................................................. 6,469 6,575
Subsequent Offense ................................................. 43,126 43,832

VerDate Sep<11>2014 20:34 Jan 18, 2017 Jkt 241001 PO 00000 Frm 00053 Fmt 4700 Sfmt 4700 E:\FR\FM\19JAR1.SGM 19JAR1

Document Created: 2018-02-01 15:15:54
Document Modified: 2018-02-01 15:15:54

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final rule.
Dates		This rule is effective January 19, 2017 and is applicable beginning on January 13, 2017.
Contact		Brian Banal, 703-571-1652.
FR Citation		82 FR 6248
RIN Number		0790-ZA12
CFR Associated		Administrative Practice and Procedure and Penalties

82 FR 6248 - Civil Monetary Penalty Inflation Adjustment

DEPARTMENT OF DEFENSEOffice of the Secretary

Federal Register Volume 82, Issue 12 (January 19, 2017)

DEPARTMENT OF DEFENSE
Office of the Secretary