82_FR_8145 82 FR 8131 - Civil Monetary Penalties Inflation Adjustments for Ethics in Government Act Violations

82 FR 8131 - Civil Monetary Penalties Inflation Adjustments for Ethics in Government Act Violations

OFFICE OF GOVERNMENT ETHICS

Federal Register Volume 82, Issue 14 (January 24, 2017)

Page Range8131-8133
FR Document2017-00627

The U.S. Office of Government Ethics (OGE) is issuing this final rule in accordance with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. This rulemaking adopts as final prior interim regulations making ``catch-up'' inflationary adjustments to each of the five civil monetary penalties provided in the Ethics in Government Act, as reflected in the executive branchwide financial disclosure and outside employment/activities regulations promulgated by OGE. This rulemaking also makes the 2017 annual adjustment to the Ethics in Government Act civil monetary penalties mandated by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.

Federal Register, Volume 82 Issue 14 (Tuesday, January 24, 2017) 
[Federal Register Volume 82, Number 14 (Tuesday, January 24, 2017)]
[Rules and Regulations]
[Pages 8131-8133]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-00627]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
week.

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Federal Register / Vol. 82, No. 14 / Tuesday, January 24, 2017 / 
Rules and Regulations

[[Page 8131]]


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OFFICE OF GOVERNMENT ETHICS

5 CFR Parts 2634 and 2636

RINs 3209-AA00 and 3209-AA38


Civil Monetary Penalties Inflation Adjustments for Ethics in 
Government Act Violations

AGENCY: Office of Government Ethics.

ACTION: Final rule.

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SUMMARY: The U.S. Office of Government Ethics (OGE) is issuing this 
final rule in accordance with the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015. This rulemaking adopts as 
final prior interim regulations making ``catch-up'' inflationary 
adjustments to each of the five civil monetary penalties provided in 
the Ethics in Government Act, as reflected in the executive branchwide 
financial disclosure and outside employment/activities regulations 
promulgated by OGE. This rulemaking also makes the 2017 annual 
adjustment to the Ethics in Government Act civil monetary penalties 
mandated by the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015.

DATES: Effective date: This final rule is effective January 24, 2017.
    Applicability date: This final rule is applicable January 15, 2017.

FOR FURTHER INFORMATION CONTACT: Kimberly L. Sikora Panza, Associate 
Counsel, General Counsel and Legal Policy Division, Office of 
Government Ethics, Telephone: 202-482-9300; TTY: 800-877-8339; FAX: 
202-482-9237.

SUPPLEMENTARY INFORMATION: 

I. Background

``Catch-up'' Adjustment to Ethics in Government Act Civil Monetary 
Penalties

    In November 2015, Congress passed the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015 (Sec. 701 of Pub. L. 
114-74) (the 2015 Act), which further amended the Federal Civil 
Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410). The 2015 
Act required Federal agencies to make inflationary adjustments to the 
civil monetary penalties (CMPs) within their jurisdiction with an 
initial ``catch-up'' adjustment through an interim final rule effective 
no later than August 1, 2016. The 2015 Act further mandates that 
Federal agencies make subsequent annual inflationary adjustments of 
their CMPs, to be effective no later than January 15 of each year.
    In compliance with the 2015 Act and guidance issued by the Office 
of Management and Budget (OMB), on June 28, 2016, the U.S. Office of 
Government Ethics (OGE) published in the Federal Register an interim 
final rule with request for comments, 81 FR 41787 (June 28, 2016). The 
interim final rule, which became effective on August 1, 2016, made 
inflationary adjustments to the five CMPs provided in the Ethics in 
Government Act of 1978 as amended, 5 U.S.C. appendix (the Ethics 
Act).\1\ The Ethics Act provides for penalties that can be assessed by 
an appropriate United States district court, based upon a civil action 
brought by the Department of Justice, for the following five types of 
violations: Knowing and willful failure to file, report required 
information on, or falsification of a public financial disclosure 
report; knowing and willful breach of a qualified trust by trustees and 
interested parties; negligent breach of a qualified trust by trustees 
and interested parties; misuse of a public report; and violation of 
outside employment/activities provisions. See sections 102(f)(6)(C)(i) 
and (ii), 104(a), 105(c)(2) and 504(a) of the Ethics Act, 5 U.S.C. 
appendix, 102(f)(6)(C)(i) and (ii), 104(a), 105(c)(2) and 504(a). These 
penalties are reflected in 5 CFR 2634.701(b), 2634.702(a) and (b), and 
2634.703 of OGE's executive branchwide financial disclosure regulation 
and 5 CFR 2636.104(a) of OGE's executive branchwide covered noncareer 
employee outside employment/activities regulation.
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    \1\ OGE has previously determined, after consultation with the 
Department of Justice, that the $200 late filing fee for public 
financial disclosure reports that are more than 30 days overdue (see 
section 104(d) of the Ethics Act, 5 U.S.C. appendix, 104(d), and 5 
CFR 2634.704 of OGE's regulations thereunder) is not a CMP as 
defined under the Federal Civil Penalties Inflation Adjustment Act, 
as amended. Therefore, that fee is not being adjusted in this 
rulemaking (nor was it adjusted by OGE in previous CMP rulemakings), 
and will remain at its current amount of $200.
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    As explained in the preamble to the interim final rule, the 
increased civil monetary penalty amounts calculated in OGE's ``catch-
up'' adjustment applied only to civil penalties assessed after August 
1, 2016 whose associated violations occurred after November 2, 2015, 
the date of enactment of the 2015 Act. For the sake of clarity, OGE's 
interim final rule stated the original, previously-adjusted and newly-
adjusted Ethics Act CMP amounts. OGE received no comments on the 
interim final rule, and therefore is adopting it as final in this 
rulemaking.

Annual Inflationary Adjustment to the Ethics in Government Act Civil 
Monetary Penalties

    Beginning in 2017, the 2015 Act requires Federal agencies to make 
annual inflationary adjustments to their CMPs. The annual adjustments 
are based on the percent change between the Consumer Price Index for 
all Urban Consumers (CPI-U) for the month of October preceding the date 
of the adjustment, and the prior year's October CPI-U. Pursuant to OMB 
guidance, the cost-of-living adjustment multiplier for 2017, based on 
the CPI-U for October 2016, not seasonally adjusted, is 1.01636. To 
calculate the 2017 annual adjustment, agencies must multiply the most 
recent penalty by the 1.01636 multiplier, and round to the nearest 
dollar.
    Applying the formula established by the 2015 Act and OMB guidance, 
OGE is amending the Ethics Act CMPs through this rulemaking to:
    (1) Increase the three penalties reflected in 5 CFR 2634.702(a), 5 
CFR 2634.703, and 5 CFR 2636.104(a)--which were previously adjusted to 
a maximum of $18,936--to a maximum of $19,246;
    (2) Increase the penalty reflected in 5 CFR 2634.702(b)--which was 
previously adjusted to a maximum of $9,468--to a maximum of $9,623; and
    (3) Increase the penalty reflected in 5 CFR 2634.701(b)--which was 
previously adjusted to a maximum of $56,916--to a maximum of $57,847. 
Consistent with the implementation of the ``catch-up'' penalty 
adjustments, these adjusted penalty amounts will

[[Page 8132]]

apply only to penalties assessed after January 15, 2017 (the 
applicability date of this final rule) whose associated violations 
occurred after November 2, 2015.
    OGE will continue to make future annual inflationary adjustments to 
the Ethics Act CMPs in accordance with the statutory formula set forth 
in the 2015 Act.

II. Matters of Regulatory Procedure

Administrative Procedure Act

    Pursuant to 5 U.S.C. 553(b), as Director of the Office of 
Government Ethics, I find that good cause exists for waiving the 
general notice of proposed rulemaking and public comment procedures as 
to these technical amendments. The notice and comment procedures are 
being waived because these amendments, which concern matters of agency 
organization, procedure and practice, are being adopted in accordance 
with statutorily mandated inflation adjustment procedures of the 2015 
Act, which specifies that agencies shall adjust civil monetary 
penalties notwithstanding Section 553 of the Administrative Procedure 
Act. It is also in the public interest that the adjusted rates for 
civil monetary penalties under the Ethics in Government Act become 
effective as soon as possible in order to maintain their deterrent 
effect.

Regulatory Flexibility Act

    As the Director of the Office of Government Ethics, I certify under 
the Regulatory Flexibility Act (5 U.S.C. chapter 6) that this final 
rule would not have a significant economic impact on a substantial 
number of small entities because it primarily affects current Federal 
executive branch employees.

Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. chapter 35) does not apply 
because this regulation does not contain information collection 
requirements that require approval of the Office of Management and 
Budget.

Unfunded Mandates Reform Act

    For purposes of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
chapter 5, subchapter II), this rule would not significantly or 
uniquely affect small governments and will not result in increased 
expenditures by State, local, and tribal governments, in the aggregate, 
or by the private sector, of $100 million or more (as adjusted for 
inflation) in any one year.

Executive Order 13563 and Executive Order 12866

    Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select the regulatory approaches that 
maximize net benefits (including economic, environmental, public health 
and safety effects, distributive 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. 
The Office of Management and Budget has determined that rulemakings 
such as this implementing annual inflationary adjustments under the 
2015 Act are not significant regulatory actions under Executive Order 
12866.

Executive Order 12988

    As Director of the Office of Government Ethics, I have reviewed 
this rule in light of section 3 of Executive Order 12988, Civil Justice 
Reform, and certify that it meets the applicable standards provided 
therein.

List of Subjects

5 CFR Part 2634

    Certificates of divestiture, Conflict of interests, Government 
employees, Penalties, Reporting and recordkeeping requirements, Trusts 
and trustees.

5 CFR Part 2636

    Conflict of interests, Government employees, Penalties.

    Dated: January 9, 2017.
Walter M. Shaub, Jr.,
Director, U.S. Office of Government Ethics.

    Accordingly, for the reasons set forth in the preamble, the U.S. 
Office of Government Ethics is adopting the interim final rule 
published at 81 FR 41787 (June 28, 2016) as a final rule with the 
following changes:

PART 2634--EXECUTIVE BRANCH FINANCIAL DISCLOSURE, QUALIFIED TRUSTS, 
AND CERTIFICATES OF DIVESTITURE

0
1. The authority citation for part 2634 continues to read as follows:

    Authority:  5 U.S.C. App. (Ethics in Government Act of 1978); 26 
U.S.C. 1043; Pub. L. 101-410, 104 Stat. 890, 28 U.S.C. 2461 note 
(Federal Civil Penalties Inflation Adjustment Act of 1990), as 
amended by Sec. 31001, Pub. L. 104-134, 110 Stat. 1321 (Debt 
Collection Improvement Act of 1996) and Sec. 701, Pub. L. 114-74 
(Federal Civil Penalties Inflation Adjustment Act Improvements Act 
of 2015); E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., p. 215, as 
modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p. 306.

0
2. Section 2634.701 is amended by revising paragraph (b) to read as 
follows:


Sec.  2634.701   Failure to file or falsifying reports.

* * * * *
    (b) Civil action. The Attorney General may bring a civil action in 
any appropriate United States district court against any individual who 
knowingly and willfully falsifies or who knowingly and willfully fails 
to file or report any information required by filers of public reports 
under subpart B of this part. The court in which the action is brought 
may assess against the individual a civil monetary penalty in any 
amount, not to exceed the amounts set forth below, as provided by 
section 104(a) of the Act, as amended, and as adjusted in accordance 
with the inflation adjustment procedures prescribed in the Federal 
Civil Penalties Inflation Adjustment Act of 1990, as amended:

------------------------------------------------------------------------
                      Date of violation                         Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 14, 2007 and Nov. 2, 2015..    $50,000
Violation occurring after Nov. 2, 2015.......................     57,847
------------------------------------------------------------------------

* * * * *

0
3. Section 2634.702 is revised to read as follows:


Sec.  2634.702  Breaches by trust fiduciaries and interested parties.

    (a) The Attorney General may bring a civil action in any 
appropriate United States district court against any individual who 
knowingly and willfully violates the provisions of Sec.  2634.408(d)(1) 
or (e)(1). The court in which the action is brought may assess against 
the individual a civil monetary penalty in any amount, not to exceed 
the amounts set forth below, as provided by section 102(f)(6)(C)(i) of 
the Act and as adjusted in accordance with the inflation adjustment 
procedures prescribed in the Federal Civil Penalties Inflation 
Adjustment Act of 1990, as amended:

------------------------------------------------------------------------
                      Date of violation                         Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015..    $11,000
Violation occurring after Nov. 2, 2015.......................     19,246
------------------------------------------------------------------------

    (b) The Attorney General may bring a civil action in any 
appropriate United States district court against any individual who 
negligently violates the provisions of Sec.  2634.408(d)(1) or (e)(1). 
The court in which the action is brought

[[Page 8133]]

may assess against the individual a civil monetary penalty in any 
amount, not to exceed the amounts set forth below, as provided by 
section 102(f)(6)(C)(ii) of the Act and as adjusted in accordance with 
the inflation adjustment procedures of the Federal Civil Penalties 
Inflation Adjustment Act of 1990, as amended:

------------------------------------------------------------------------
                      Date of violation                         Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015..     $5,500
Violation occurring after Nov. 2, 2015.......................      9,623
------------------------------------------------------------------------


0
4. Section 2634.703 is revised to read as follows:


Sec.  2634.703  Misuse of public reports.

    (a) The Attorney General may bring a civil action against any 
person who obtains or uses a report filed under this part for any 
purpose prohibited by section 105(c)(1) of the Act, as incorporated in 
Sec.  2634.603(f). The court in which the action is brought may assess 
against the person a civil monetary penalty in any amount, not to 
exceed the amounts set forth below, as provided by section 105(c)(2) of 
the Act and as adjusted in accordance with the inflation adjustment 
procedures prescribed in the Federal Civil Penalties Inflation 
Adjustment Act of 1990, as amended:

------------------------------------------------------------------------
                      Date of violation                         Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015..    $11,000
Violation occurring after Nov. 2, 2015.......................     19,246
------------------------------------------------------------------------

    (b) This remedy shall be in addition to any other remedy available 
under statutory or common law.

PART 2636--LIMITATIONS ON OUTSIDE EARNED INCOME, EMPLOYMENT AND 
AFFILIATIONS FOR CERTAIN NONCAREER EMPLOYEES

0
5. The authority citation for part 2636 continues to read as follows:

    Authority:  5 U.S.C. App. (Ethics in Government Act of 1978); 
Pub. L. 101-410, 104 Stat. 890, 28 U.S.C. 2461 note (Federal Civil 
Penalties Inflation Adjustment Act of 1990), as amended by Sec. 
31001, Pub. L. 104-134, 110 Stat. 1321 (Debt Collection Improvement 
Act of 1996) and Sec. 701, Pub. L. 114-74 (Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015); E.O. 12674, 54 
FR 15159, 3 CFR, 1989 Comp., p. 215, as modified by E.O. 12731, 55 
FR 42547, 3 CFR, 1990 Comp., p. 306.


0
6. Section 2636.104 is amended by revising paragraph (a) to read as 
follows:


Sec.  2636.104   Civil, disciplinary and other action.

    (a) Civil action. Except when the employee engages in conduct in 
good faith reliance upon an advisory opinion issued under Sec.  
2636.103, an employee who engages in any conduct in violation of the 
prohibitions, limitations and restrictions contained in this part may 
be subject to civil action under 5 U.S.C. app. 504(a) and a civil 
monetary penalty of not more than the amounts set forth below, as 
adjusted in accordance with the inflation adjustment procedures 
prescribed in the Federal Civil Penalties Inflation Adjustment Act of 
1990, as amended, or the amount of the compensation the individual 
received for the prohibited conduct, whichever is greater.

------------------------------------------------------------------------
                      Date of violation                         Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015..    $11,000
Violation occurring after Nov. 2, 2015.......................     19,246
------------------------------------------------------------------------

* * * * *
[FR Doc. 2017-00627 Filed 1-23-17; 8:45 am]
 BILLING CODE 6345-03-P

8131 Rules and Regulations Federal Register Vol. 82, No. 14 Tuesday, January 24, 2017 This section of the FEDERAL REGISTER Adjustment Act Improvements Act of branchwide financial disclosure contains regulatory documents having general 2015 (Sec. 701 of Pub. L. 114–74) (the regulation and 5 CFR 2636.104(a) of applicability and legal effect, most of which 2015 Act), which further amended the OGE’s executive branchwide covered are keyed to and codified in the Code of Federal Civil Penalties Inflation noncareer employee outside Federal Regulations, which is published under Adjustment Act of 1990 (Pub. L. 101– employment/activities regulation. 50 titles pursuant to 44 U.S.C. 1510. As explained in the preamble to the 410). The 2015 Act required Federal The Code of Federal Regulations is sold by agencies to make inflationary interim final rule, the increased civil the Superintendent of Documents. Prices of adjustments to the civil monetary monetary penalty amounts calculated in new books are listed in the first FEDERAL penalties (CMPs) within their OGE’s ‘‘catch-up’’ adjustment applied REGISTER issue of each week. jurisdiction with an initial ‘‘catch-up’’ only to civil penalties assessed after adjustment through an interim final rule August 1, 2016 whose associated effective no later than August 1, 2016. violations occurred after November 2, OFFICE OF GOVERNMENT ETHICS The 2015 Act further mandates that 2015, the date of enactment of the 2015 Federal agencies make subsequent Act. For the sake of clarity, OGE’s 5 CFR Parts 2634 and 2636 annual inflationary adjustments of their interim final rule stated the original, RINs 3209–AA00 and 3209–AA38 CMPs, to be effective no later than previously-adjusted and newly-adjusted January 15 of each year. Ethics Act CMP amounts. OGE received Civil Monetary Penalties Inflation In compliance with the 2015 Act and no comments on the interim final rule, Adjustments for Ethics in Government guidance issued by the Office of and therefore is adopting it as final in Act Violations Management and Budget (OMB), on this rulemaking. June 28, 2016, the U.S. Office of AGENCY: Office of Government Ethics. Annual Inflationary Adjustment to the Government Ethics (OGE) published in ACTION: Final rule. Ethics in Government Act Civil the Federal Register an interim final Monetary Penalties SUMMARY: The U.S. Office of rule with request for comments, 81 FR 41787 (June 28, 2016). The interim final Beginning in 2017, the 2015 Act Government Ethics (OGE) is issuing this requires Federal agencies to make rule, which became effective on August final rule in accordance with the annual inflationary adjustments to their 1, 2016, made inflationary adjustments Federal Civil Penalties Inflation CMPs. The annual adjustments are to the five CMPs provided in the Ethics Adjustment Act Improvements Act of based on the percent change between in Government Act of 1978 as amended, 2015. This rulemaking adopts as final the Consumer Price Index for all Urban 5 U.S.C. appendix (the Ethics Act).1 The prior interim regulations making ‘‘catch- Consumers (CPI–U) for the month of Ethics Act provides for penalties that up’’ inflationary adjustments to each of October preceding the date of the can be assessed by an appropriate the five civil monetary penalties adjustment, and the prior year’s October United States district court, based upon provided in the Ethics in Government CPI–U. Pursuant to OMB guidance, the a civil action brought by the Department Act, as reflected in the executive of Justice, for the following five types of cost-of-living adjustment multiplier for branchwide financial disclosure and violations: Knowing and willful failure 2017, based on the CPI–U for October outside employment/activities to file, report required information on, 2016, not seasonally adjusted, is regulations promulgated by OGE. This or falsification of a public financial 1.01636. To calculate the 2017 annual rulemaking also makes the 2017 annual disclosure report; knowing and willful adjustment, agencies must multiply the adjustment to the Ethics in Government breach of a qualified trust by trustees most recent penalty by the 1.01636 Act civil monetary penalties mandated and interested parties; negligent breach multiplier, and round to the nearest by the Federal Civil Penalties Inflation of a qualified trust by trustees and dollar. Adjustment Act Improvements Act of interested parties; misuse of a public Applying the formula established by 2015. report; and violation of outside the 2015 Act and OMB guidance, OGE DATES: Effective date: This final rule is employment/activities provisions. See is amending the Ethics Act CMPs effective January 24, 2017. sections 102(f)(6)(C)(i) and (ii), 104(a), through this rulemaking to: Applicability date: This final rule is 105(c)(2) and 504(a) of the Ethics Act, 5 (1) Increase the three penalties applicable January 15, 2017. U.S.C. appendix, 102(f)(6)(C)(i) and (ii), reflected in 5 CFR 2634.702(a), 5 CFR FOR FURTHER INFORMATION CONTACT: 104(a), 105(c)(2) and 504(a). These 2634.703, and 5 CFR 2636.104(a)— Kimberly L. Sikora Panza, Associate penalties are reflected in 5 CFR which were previously adjusted to a Counsel, General Counsel and Legal 2634.701(b), 2634.702(a) and (b), and maximum of $18,936—to a maximum of Policy Division, Office of Government 2634.703 of OGE’s executive $19,246; (2) Increase the penalty reflected in 5 Ethics, Telephone: 202–482–9300; TTY: 1 OGE has previously determined, after CFR 2634.702(b)—which was 800–877–8339; FAX: 202–482–9237. consultation with the Department of Justice, that previously adjusted to a maximum of SUPPLEMENTARY INFORMATION: the $200 late filing fee for public financial $9,468—to a maximum of $9,623; and sradovich on DSK3GMQ082PROD with RULES disclosure reports that are more than 30 days (3) Increase the penalty reflected in 5 I. Background overdue (see section 104(d) of the Ethics Act, 5 U.S.C. appendix, 104(d), and 5 CFR 2634.704 of CFR 2634.701(b)—which was ‘‘Catch-up’’ Adjustment to Ethics in OGE’s regulations thereunder) is not a CMP as previously adjusted to a maximum of Government Act Civil Monetary defined under the Federal Civil Penalties Inflation $56,916—to a maximum of $57,847. Penalties Adjustment Act, as amended. Therefore, that fee is Consistent with the implementation of not being adjusted in this rulemaking (nor was it In November 2015, Congress passed adjusted by OGE in previous CMP rulemakings), the ‘‘catch-up’’ penalty adjustments, the Federal Civil Penalties Inflation and will remain at its current amount of $200. these adjusted penalty amounts will VerDate Sep<11>2014 17:47 Jan 23, 2017 Jkt 241001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\24JAR1.SGM 24JAR1

8132 Federal Register / Vol. 82, No. 14 / Tuesday, January 24, 2017 / Rules and Regulations apply only to penalties assessed after Executive Order 13563 and Executive FR 15159, 3 CFR, 1989 Comp., p. 215, as January 15, 2017 (the applicability date Order 12866 modified by E.O. 12731, 55 FR 42547, 3 CFR, of this final rule) whose associated 1990 Comp., p. 306. Executive Orders 13563 and 12866 ■ 2. Section 2634.701 is amended by violations occurred after November 2, direct agencies to assess all costs and 2015. revising paragraph (b) to read as follows: benefits of available regulatory OGE will continue to make future alternatives and, if regulation is § 2634.701 Failure to file or falsifying annual inflationary adjustments to the necessary, to select the regulatory reports. Ethics Act CMPs in accordance with the approaches that maximize net benefits * * * * * statutory formula set forth in the 2015 (including economic, environmental, (b) Civil action. The Attorney General Act. public health and safety effects, may bring a civil action in any distributive impacts, and equity). appropriate United States district court II. Matters of Regulatory Procedure Executive Order 13563 emphasizes the against any individual who knowingly Administrative Procedure Act importance of quantifying both costs and willfully falsifies or who knowingly and benefits, of reducing costs, of and willfully fails to file or report any Pursuant to 5 U.S.C. 553(b), as harmonizing rules, and of promoting information required by filers of public Director of the Office of Government flexibility. The Office of Management reports under subpart B of this part. The Ethics, I find that good cause exists for and Budget has determined that court in which the action is brought waiving the general notice of proposed rulemakings such as this implementing may assess against the individual a civil rulemaking and public comment annual inflationary adjustments under monetary penalty in any amount, not to procedures as to these technical the 2015 Act are not significant exceed the amounts set forth below, as amendments. The notice and comment regulatory actions under Executive provided by section 104(a) of the Act, as procedures are being waived because Order 12866. amended, and as adjusted in accordance these amendments, which concern with the inflation adjustment matters of agency organization, Executive Order 12988 procedures prescribed in the Federal procedure and practice, are being As Director of the Office of Civil Penalties Inflation Adjustment Act adopted in accordance with statutorily Government Ethics, I have reviewed this of 1990, as amended: mandated inflation adjustment rule in light of section 3 of Executive procedures of the 2015 Act, which Order 12988, Civil Justice Reform, and Date of violation Penalty specifies that agencies shall adjust civil certify that it meets the applicable Violation occurring between Sept. monetary penalties notwithstanding standards provided therein. 14, 2007 and Nov. 2, 2015 ....... $50,000 Section 553 of the Administrative List of Subjects Violation occurring after Nov. 2, Procedure Act. It is also in the public 2015 .......................................... 57,847 interest that the adjusted rates for civil 5 CFR Part 2634 monetary penalties under the Ethics in Certificates of divestiture, Conflict of * * * * * Government Act become effective as interests, Government employees, ■ 3. Section 2634.702 is revised to read soon as possible in order to maintain Penalties, Reporting and recordkeeping as follows: their deterrent effect. requirements, Trusts and trustees. § 2634.702 Breaches by trust fiduciaries Regulatory Flexibility Act 5 CFR Part 2636 and interested parties. Conflict of interests, Government (a) The Attorney General may bring a As the Director of the Office of employees, Penalties. civil action in any appropriate United Government Ethics, I certify under the States district court against any Regulatory Flexibility Act (5 U.S.C. Dated: January 9, 2017. individual who knowingly and willfully chapter 6) that this final rule would not Walter M. Shaub, Jr., violates the provisions of have a significant economic impact on Director, U.S. Office of Government Ethics. § 2634.408(d)(1) or (e)(1). The court in a substantial number of small entities which the action is brought may assess because it primarily affects current Accordingly, for the reasons set forth in the preamble, the U.S. Office of against the individual a civil monetary Federal executive branch employees. penalty in any amount, not to exceed Government Ethics is adopting the Paperwork Reduction Act interim final rule published at 81 FR the amounts set forth below, as 41787 (June 28, 2016) as a final rule provided by section 102(f)(6)(C)(i) of the The Paperwork Reduction Act (44 with the following changes: Act and as adjusted in accordance with U.S.C. chapter 35) does not apply the inflation adjustment procedures because this regulation does not contain PART 2634—EXECUTIVE BRANCH prescribed in the Federal Civil Penalties information collection requirements that FINANCIAL DISCLOSURE, QUALIFIED Inflation Adjustment Act of 1990, as require approval of the Office of TRUSTS, AND CERTIFICATES OF amended: Management and Budget. DIVESTITURE Date of violation Penalty Unfunded Mandates Reform Act ■ 1. The authority citation for part 2634 continues to read as follows: Violation occurring between Sept. For purposes of the Unfunded 29, 1999 and Nov. 2, 2015 ....... $11,000 Mandates Reform Act of 1995 (2 U.S.C. Authority: 5 U.S.C. App. (Ethics in Violation occurring after Nov. 2, chapter 5, subchapter II), this rule Government Act of 1978); 26 U.S.C. 1043; 2015 .......................................... 19,246 sradovich on DSK3GMQ082PROD with RULES would not significantly or uniquely Pub. L. 101–410, 104 Stat. 890, 28 U.S.C. affect small governments and will not 2461 note (Federal Civil Penalties Inflation (b) The Attorney General may bring a Adjustment Act of 1990), as amended by Sec. result in increased expenditures by civil action in any appropriate United 31001, Pub. L. 104–134, 110 Stat. 1321 (Debt State, local, and tribal governments, in Collection Improvement Act of 1996) and States district court against any the aggregate, or by the private sector, of Sec. 701, Pub. L. 114–74 (Federal Civil individual who negligently violates the $100 million or more (as adjusted for Penalties Inflation Adjustment Act provisions of § 2634.408(d)(1) or (e)(1). inflation) in any one year. Improvements Act of 2015); E.O. 12674, 54 The court in which the action is brought VerDate Sep<11>2014 17:47 Jan 23, 2017 Jkt 241001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\24JAR1.SGM 24JAR1

Federal Register / Vol. 82, No. 14 / Tuesday, January 24, 2017 / Rules and Regulations 8133 may assess against the individual a civil § 2636.104 Civil, disciplinary and other to $10,957 for each false claim or monetary penalty in any amount, not to action. statement. exceed the amounts set forth below, as (a) Civil action. Except when the provided by section 102(f)(6)(C)(ii) of employee engages in conduct in good DATES: This final rule is effective on the Act and as adjusted in accordance faith reliance upon an advisory opinion January 24, 2017. with the inflation adjustment issued under § 2636.103, an employee ADDRESSES: Please refer to Docket ID procedures of the Federal Civil Penalties who engages in any conduct in violation NRC–2016–0165 when contacting the Inflation Adjustment Act of 1990, as of the prohibitions, limitations and NRC about the availability of amended: restrictions contained in this part may information for this action. You may be subject to civil action under 5 U.S.C. obtain publicly-available information Date of violation app. 504(a) and a civil monetary penalty Penalty related to this action by any of the of not more than the amounts set forth following methods: Violation occurring between Sept. below, as adjusted in accordance with 29, 1999 and Nov. 2, 2015 ....... $5,500 the inflation adjustment procedures • Federal Rulemaking Web site: Go to Violation occurring after Nov. 2, http://www.regulations.gov and search 2015 .......................................... prescribed in the Federal Civil Penalties 9,623 Inflation Adjustment Act of 1990, as for Docket ID NRC–2016–0165. Address amended, or the amount of the questions about NRC dockets to Carol ■ 4. Section 2634.703 is revised to read Gallagher; telephone: 301–415–3463; as follows: compensation the individual received for the prohibited conduct, whichever is email: Carol.Gallagher@nrc.gov. For § 2634.703 Misuse of public reports. greater. technical questions, contact the individual listed in the FOR FURTHER (a) The Attorney General may bring a Date of violation Penalty INFORMATION CONTACT section of this civil action against any person who document. obtains or uses a report filed under this part for any purpose prohibited by Violation occurring between Sept. • NRC’s Agencywide Documents 29, 1999 and Nov. 2, 2015 ....... $11,000 section 105(c)(1) of the Act, as Access and Management System Violation occurring after Nov. 2, incorporated in § 2634.603(f). The court 2015 .......................................... 19,246 (ADAMS): You may obtain publicly- in which the action is brought may available documents online in the assess against the person a civil * * * * * ADAMS Public Documents collection at monetary penalty in any amount, not to [FR Doc. 2017–00627 Filed 1–23–17; 8:45 am] http://www.nrc.gov/reading-rm/ exceed the amounts set forth below, as BILLING CODE 6345–03–P adams.html. To begin the search, select provided by section 105(c)(2) of the Act ‘‘ADAMS Public Documents’’ and then and as adjusted in accordance with the select ‘‘Begin Web-based ADAMS inflation adjustment procedures NUCLEAR REGULATORY Search.’’ For problems with ADAMS, prescribed in the Federal Civil Penalties COMMISSION please contact the NRC’s Public Inflation Adjustment Act of 1990, as Document Room (PDR) reference staff at amended: 10 CFR Parts 2 and 13 1–800–397–4209, 301–415–4737, or by email to pdr.resource@nrc.gov. The Date of violation Penalty [NRC–2016–0165] ADAMS accession number for each RIN 3150–AJ82 document referenced (if it is available in Violation occurring between Sept. ADAMS) is provided the first time that 29, 1999 and Nov. 2, 2015 ....... $11,000 Adjustment of Civil Penalties for it is mentioned in the SUPPLEMENTARY Violation occurring after Nov. 2, Inflation for FY 2017 INFORMATION section. 2015 .......................................... 19,246 AGENCY: Nuclear Regulatory • NRC’s PDR: You may examine and (b) This remedy shall be in addition Commission. purchase copies of public documents at to any other remedy available under ACTION: Final rule. the NRC’s PDR, Room O1–F21, One statutory or common law. White Flint North, 11555 Rockville SUMMARY: The U.S. Nuclear Regulatory Pike, Rockville, Maryland 20852. PART 2636—LIMITATIONS ON Commission (NRC) is amending its OUTSIDE EARNED INCOME, regulations to adjust the maximum civil FOR FURTHER INFORMATION CONTACT: Eric EMPLOYMENT AND AFFILIATIONS monetary penalties (CMPs) it can assess Michel, Office of the General Counsel, FOR CERTAIN NONCAREER under statutes enforced by the agency. telephone: 301–287–3704, email: EMPLOYEES These changes are mandated by the Eric.Michel2@nrc.gov, U.S. Nuclear Federal Civil Penalties Inflation Regulatory Commission, Washington, ■ 5. The authority citation for part 2636 DC 20555–0001. Adjustment Act of 1990 (FCPIAA), as continues to read as follows: amended by the Federal Civil Penalties SUPPLEMENTARY INFORMATION: Authority: 5 U.S.C. App. (Ethics in Inflation Adjustment Act Improvements Government Act of 1978); Pub. L. 101–410, Act of 2015 (2015 Improvements Act). Table of Contents 104 Stat. 890, 28 U.S.C. 2461 note (Federal The NRC is amending its regulations to Civil Penalties Inflation Adjustment Act of I. Background 1990), as amended by Sec. 31001, Pub. L. adjust the maximum CMP for a violation II. Discussion 104–134, 110 Stat. 1321 (Debt Collection of the Atomic Energy Act of 1954, as III. Rulemaking Procedure Improvement Act of 1996) and Sec. 701, Pub. amended (AEA), or any regulation or IV. Section-by-Section Analysis sradovich on DSK3GMQ082PROD with RULES L. 114–74 (Federal Civil Penalties Inflation order issued under the AEA from V. Regulatory Analysis Adjustment Act Improvements Act of 2015); $280,469 to $285,057 per violation, per VI. Regulatory Flexibility Act E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., day. Additionally, the NRC is amending VII. Backfitting and Issue Finality p. 215, as modified by E.O. 12731, 55 FR provisions concerning program fraud VIII. Plain Writing 42547, 3 CFR, 1990 Comp., p. 306. civil penalties by adjusting the IX. National Environmental Policy Act ■ 6. Section 2636.104 is amended by maximum CMP under the Program X. Paperwork Reduction Act revising paragraph (a) to read as follows: Fraud Civil Remedies Act from $10,781 XI. Congressional Review Act VerDate Sep<11>2014 17:47 Jan 23, 2017 Jkt 241001 PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 E:\FR\FM\24JAR1.SGM 24JAR1


Document Created: 2018-02-01 15:12:23
Document Modified: 2018-02-01 15:12:23
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 date: This final rule is effective January 24, 2017.
ContactKimberly L. Sikora Panza, Associate Counsel, General Counsel and Legal Policy Division, Office of Government Ethics, Telephone: 202-482-9300; TTY: 800-877-8339; FAX: 202-482-9237.
FR Citation82 FR 8131 
CFR Citation5 CFR 2634
5 CFR 2636
CFR AssociatedCertificates of Divestiture; Conflict of Interests; Government Employees; Penalties; Reporting and Recordkeeping Requirements and Trusts and Trustees
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