83 FR 1303 - Program Fraud Civil Remedies Act of 1986, Civil Monetary Penalties Inflation Adjustment
GENERAL SERVICES ADMINISTRATION Federal Register Volume 83, Issue 8 (January 11, 2018)
Federal Register Volume 83, Issue 8 (January 11, 2018)
| Page Range | 1303-1304 | |
| FR Document | 2018-00367 |
[Federal Register Volume 83, Number 8 (Thursday, January 11, 2018)] [Rules and Regulations] [Pages 1303-1304] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-00367] ======================================================================= ----------------------------------------------------------------------- GENERAL SERVICES ADMINISTRATION 41 CFR Part 105-70 [FPMR Case 2018-101-1; Docket No. 2018-0005; Sequence No. 1] RIN 3090-AJ92 Program Fraud Civil Remedies Act of 1986, Civil Monetary Penalties Inflation Adjustment AGENCY: Office of General Counsel, General Services Administration. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: In accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvement Act of 2015, this final rule incorporates the penalty inflation adjustments for the civil monetary penalties set forth in the United States Code, as codified in our regulations. DATES: Effective: February 12, 2018. FOR FURTHER INFORMATION CONTACT: Ms. Jessica Hawkins, Assistant General Counsel, General Law Division (LG), General Services Administration, 1800 F Street NW, Washington DC 20405. Telephone Number 202-501-1460. SUPPLEMENTARY INFORMATION: I. The Debt Collection Improvement Act of 1996 To maintain the remedial impact of civil monetary penalties (CMPs) and to promote compliance with the law, the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410) was amended by the Debt Collection Improvement Act of 1996 (Pub. L. 104-134) to require Federal agencies to regularly adjust certain CMPs for inflation and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvement Act of 2015 (Sec. 701 of Pub. L. 114-74). As amended, the law requires each agency to make an initial inflationary adjustment for all applicable CMPs, and to make further adjustments at least once every year thereafter for these penalty amounts. The Debt Collection Improvement Act of 1996 further stipulates that any resulting increases in a CMP due to the calculated inflation adjustments shall apply only to violations which occur after the date the increase takes effect, i.e., thirty (30) days after date of publication in the Federal Register. Pursuant to the 2015 Act, agencies are required to adjust the level of the CMP with an initial ``catch up``, and make subsequent annual adjustments for inflation. Catch up adjustments are based on the percent change between the Consumer Price Index for Urban Consumers (CPI-U) for the month of October for the year of the previous adjustment, and the October 2015 CPI-U. Annual inflation adjustments will be based on the percent change between the October CPI-U preceding the date of adjustment and the prior year's October CPI-U. II. The Program Fraud Civil Remedies Act of 1986 In 1986, sections 6103 and 6104 of the Omnibus Budget Reconciliation Act of 1986 (Pub. L. 99-501) set forth the Program Fraud Civil Remedies Act of 1986 (PFCRA). Specifically, this statute imposes a CMP and an assessment against any person who, with knowledge or reason to know, makes, submits, or presents a false, fictitious, or fraudulent claim or statement to the Government. The General Services Administration's regulations, published in the Federal Register (61 FR 246, December 20, 1996) and codified at 41 CFR part 105-70, set forth a CMP of up to $10,781 for each false claim or statement made to the agency. Based on the penalty amount inflation factor calculation, derived from originally dividing the June 2015 CPI by the June 1996 CPI and making the CPI-based annual adjustment thereafter, after rounding we are adjusting the maximum penalty amount for this CMP to $11,001 per violation. III. Waiver of Proposed Rulemaking In developing this final rule, we are waiving the usual notice of proposed rulemaking and public comment procedures set forth in the Administrative Procedure Act, 5 U.S.C. 553 (APA). The APA provides an exception to the notice and comment procedures when an agency finds there is good cause for dispensing with such procedures on the basis that they are impracticable, unnecessary or contrary to the public interest. We have determined that under 5 U.S.C. 553(b)(3)(B) good cause exists for dispensing with the notice of proposed rulemaking and public comment procedures for this rule. Specifically, this rulemaking comports and is consistent with the statutory authority set forth in the Debt Collection Improvement Act of 1996, with no issues of policy discretion. Accordingly, we believe that opportunity for prior comment is unnecessary and contrary to the public interest, and we are issuing these revised regulations as a final rule that will apply to all future cases under this authority. IV. Executive Orders 12866 and 13563 Executive Orders (E.O.s) 12866 and 13563 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, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is a not significant regulatory action and, therefore, was not subject to review under Section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804. The Office of Management and Budget (OMB) has reviewed this final rule in accordance with the provisions of E.O. 12866 and has determined that it does not meet the criteria for a significant regulatory action. As indicated above, the provisions contained in this final rulemaking set forth the inflation adjustments in compliance with the Debt Collection Improvement Act of 1996 for specific applicable CMPs. The great majority of individuals, organizations and entities addressed through these regulations do not engage [[Page 1304]] in such prohibited conduct, and as a result, we believe that any aggregate economic impact of these revised regulations will be minimal, affecting only those limited few who may engage in prohibited conduct in violation of the statute. As such, this final rule and the inflation adjustment contained therein should have no effect on Federal or state expenditures. V. Regulatory Flexibility Act The Administrator of General Services certifies that this final rule will not have a significant economic impact on a substantial number of small business entities. While some penalties may have an impact on small business entities, it is the nature of the violation and not the size of the entity that will result in an action by the agency, and the aggregate economic impact of this rulemaking on small business entities should be minimal, affecting only those few who have engaged in prohibited conduct in violation of statutory intent. VI. Paperwork Reduction Act This final rule imposes no new reporting or recordkeeping requirements necessitating clearance by OMB. List of Subject in 41 CFR Part 105-70 Administrative hearing, Claims, Program fraud. Dated: January 5, 2018. Emily W. Murphy, Administrator. Accordingly, 41 CFR part 105-70 is amended as set forth below: PART 105-70--IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL REMEDIES ACT OF 1986 0 1. The authority citation for part 105-70 is revised to read as follows: Authority: 40 U.S.C. 121(c); 31 U.S.C. 3809. * * * * * Sec. 105-70.003 [Amended] 0 2. Amend Sec. 105-70.003 by-- 0 a. Removing from paragraph (a)(1)(iv) the amount ``10,781'' and adding ``11,001'' in its place; and 0 b. Removing from paragraph (b)(1)(ii) the amount ``10,781'' and adding ``11,001'' in its place. [FR Doc. 2018-00367 Filed 1-10-18; 8:45 am] BILLING CODE 6820-81-P
![Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Rules and Regulations 1303
therefore, is withdrawing the direct final I. The Debt Collection Improvement Act rounding we are adjusting the maximum
rule. EPA will address the comments in of 1996 penalty amount for this CMP to $11,001
a subsequent final action based upon To maintain the remedial impact of per violation.
the proposed rule also published on civil monetary penalties (CMPs) and to III. Waiver of Proposed Rulemaking
November 14, 2017 (82 FR 52683). EPA promote compliance with the law, the
will not institute a second comment In developing this final rule, we are
Federal Civil Penalties Inflation waiving the usual notice of proposed
period on this action. Adjustment Act of 1990 (Pub. L. 101– rulemaking and public comment
List of Subjects in 40 CFR Part 52 410) was amended by the Debt procedures set forth in the
Collection Improvement Act of 1996 Administrative Procedure Act, 5 U.S.C.
Environmental protection, Air (Pub. L. 104–134) to require Federal
pollution control, Carbon monoxide, 553 (APA). The APA provides an
agencies to regularly adjust certain exception to the notice and comment
Incorporation by reference, CMPs for inflation and further amended
Intergovernmental relations, Lead, procedures when an agency finds there
by the Federal Civil Penalties Inflation is good cause for dispensing with such
Nitrogen dioxide, Ozone, Particulate Adjustment Act Improvement Act of
matter, Regional haze, Reporting and procedures on the basis that they are
2015 (Sec. 701 of Pub. L. 114–74). As impracticable, unnecessary or contrary
recordkeeping requirements, Sulfur amended, the law requires each agency
oxides, Volatile organic compounds. to the public interest. We have
to make an initial inflationary determined that under 5 U.S.C.
Dated: December 22, 2017. adjustment for all applicable CMPs, and 553(b)(3)(B) good cause exists for
Kenneth Moraff, to make further adjustments at least dispensing with the notice of proposed
Acting Regional Administrator, EPA New once every year thereafter for these rulemaking and public comment
England. penalty amounts. The Debt Collection procedures for this rule. Specifically,
■ Accordingly, the amendments to 40 Improvement Act of 1996 further this rulemaking comports and is
CFR 52.1520 published on November stipulates that any resulting increases in consistent with the statutory authority
14, 2017 (82 FR 52664) are withdrawn a CMP due to the calculated inflation set forth in the Debt Collection
effective January 11, 2018. adjustments shall apply only to Improvement Act of 1996, with no
violations which occur after the date the issues of policy discretion. Accordingly,
[FR Doc. 2018–00288 Filed 1–10–18; 8:45 am]
increase takes effect, i.e., thirty (30) days we believe that opportunity for prior
BILLING CODE 6560–50–P
after date of publication in the Federal comment is unnecessary and contrary to
Register. Pursuant to the 2015 Act, the public interest, and we are issuing
agencies are required to adjust the level these revised regulations as a final rule
GENERAL SERVICES of the CMP with an initial ‘‘catch up‘‘, that will apply to all future cases under
ADMINISTRATION and make subsequent annual this authority.
adjustments for inflation. Catch up
41 CFR Part 105–70 adjustments are based on the percent IV. Executive Orders 12866 and 13563
change between the Consumer Price Executive Orders (E.O.s) 12866 and
[FPMR Case 2018–101–1; Docket No. 2018– Index for Urban Consumers (CPI–U) for 13563 direct agencies to assess all costs
0005; Sequence No. 1] the month of October for the year of the and benefits of available regulatory
previous adjustment, and the October alternatives and, if regulation is
RIN 3090–AJ92 2015 CPI–U. Annual inflation necessary, to select regulatory
adjustments will be based on the approaches that maximize net benefits
Program Fraud Civil Remedies Act of percent change between the October (including potential economic,
1986, Civil Monetary Penalties Inflation CPI–U preceding the date of adjustment environmental, public health and safety
Adjustment and the prior year’s October CPI–U. effects, distributive impacts, and
AGENCY: Office of General Counsel, equity). E.O. 13563 emphasizes the
II. The Program Fraud Civil Remedies importance of quantifying both costs
General Services Administration. Act of 1986 and benefits, of reducing costs, of
ACTION: Final rule. In 1986, sections 6103 and 6104 of the harmonizing rules, and of promoting
SUMMARY: In accordance with the Omnibus Budget Reconciliation Act of flexibility. This is a not significant
Federal Civil Penalties Inflation 1986 (Pub. L. 99–501) set forth the regulatory action and, therefore, was not
Adjustment Act of 1990, as amended by Program Fraud Civil Remedies Act of subject to review under Section 6(b) of
the Debt Collection Improvement Act of 1986 (PFCRA). Specifically, this statute E.O. 12866, Regulatory Planning and
1996 and further amended by the imposes a CMP and an assessment Review, dated September 30, 1993. This
Federal Civil Penalties Inflation against any person who, with rule is not a major rule under 5 U.S.C.
Adjustment Act Improvement Act of knowledge or reason to know, makes, 804.
2015, this final rule incorporates the submits, or presents a false, fictitious, or The Office of Management and Budget
penalty inflation adjustments for the fraudulent claim or statement to the (OMB) has reviewed this final rule in
civil monetary penalties set forth in the Government. The General Services accordance with the provisions of E.O.
United States Code, as codified in our Administration’s regulations, published 12866 and has determined that it does
regulations. in the Federal Register (61 FR 246, not meet the criteria for a significant
December 20, 1996) and codified at 41 regulatory action. As indicated above,
DATES: Effective: February 12, 2018.
CFR part 105–70, set forth a CMP of up the provisions contained in this final
FOR FURTHER INFORMATION CONTACT: Ms. to $10,781 for each false claim or rulemaking set forth the inflation
ethrower on DSK3G9T082PROD with RULES
Jessica Hawkins, Assistant General statement made to the agency. Based on adjustments in compliance with the
Counsel, General Law Division (LG), the penalty amount inflation factor Debt Collection Improvement Act of
General Services Administration, 1800 F calculation, derived from originally 1996 for specific applicable CMPs. The
Street NW, Washington DC 20405. dividing the June 2015 CPI by the June great majority of individuals,
Telephone Number 202–501–1460. 1996 CPI and making the CPI-based organizations and entities addressed
SUPPLEMENTARY INFORMATION: annual adjustment thereafter, after through these regulations do not engage
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![1304 Federal Register / Vol. 83, No. 8 / Thursday, January 11, 2018 / Rules and Regulations
in such prohibited conduct, and as a FEDERAL MARITIME COMMISSION Procedure Act (APA) (5 U.S.C. 553),
result, we believe that any aggregate including the requirements for prior
economic impact of these revised 46 CFR Part 506 notice, an opportunity for comment, and
regulations will be minimal, affecting [Docket No. 18–01] a delay between the issuance of a final
only those limited few who may engage rule and its effective date.2 As noted
RIN 3072–AC70 above, the 2015 Act requires that the
in prohibited conduct in violation of the
statute. As such, this final rule and the Commission adjust its civil monetary
Inflation Adjustment of Civil Monetary penalties no later than January 15 of
inflation adjustment contained therein Penalties
should have no effect on Federal or state each year.
expenditures. AGENCY: Federal Maritime Commission. Congressional Review Act
ACTION: Final rule.
V. Regulatory Flexibility Act The rule is not a ‘‘major rule’’ as
SUMMARY: The Commission is defined by the Congressional Review
The Administrator of General Services publishing its adjustments to inflation Act, codified at 5 U.S.C. 801 et seq. The
certifies that this final rule will not have annually, pursuant to the Federal Civil rule will not result in: (1) An annual
a significant economic impact on a Penalties Inflation Adjustment Act effect on the economy of $100,000,000
substantial number of small business Improvements Act of 2015 (2015 Act). or more; (2) a major increase in costs or
entities. While some penalties may have The 2015 Act requires that agencies prices; or (3) significant adverse effects
an impact on small business entities, it adjust and publish their civil penalties on competition, employment,
is the nature of the violation and not the by January 15 each year. investment, productivity, innovation, or
size of the entity that will result in an the ability of United States-based
DATES: This rule is effective on January
action by the agency, and the aggregate companies to compete with foreign-
15, 2018.
economic impact of this rulemaking on based companies. 5 U.S.C. 804(2).
FOR FURTHER INFORMATION CONTACT:
small business entities should be Tyler Wood, General Counsel, Federal Regulatory Flexibility Act
minimal, affecting only those few who Maritime Commission, 800 North The Regulatory Flexibility Act
have engaged in prohibited conduct in Capitol Street NW, Room 1018, (codified as amended at 5 U.S.C. 601–
violation of statutory intent. Washington, DC 20573, (202) 523–5740. 612) provides that whenever an agency
VI. Paperwork Reduction Act SUPPLEMENTARY INFORMATION: This rule promulgates a final rule after being
adjusts the civil monetary penalties required to publish a notice of proposed
This final rule imposes no new assessable by the Commission in rulemaking under the APA (5 U.S.C.
reporting or recordkeeping requirements accordance with the 2015 Act, which 553), the agency must prepare and make
necessitating clearance by OMB. became effective on November 2, 2015, available a final regulatory flexibility
Sec. 701 of Public Law 11–74. The 2015 analysis (FRFA) describing the impact
List of Subject in 41 CFR Part 105–70
Act further amended the Federal Civil of the rule on small entities. 5 U.S.C.
Administrative hearing, Claims, Penalties Inflation Adjustment Act of 604. As indicated above, this final rule
Program fraud. 1990 (FCPIAA), Public Law 101–410, is not subject to the APA’s notice and
104 Stat. 890 (codified as amended at 28 comment requirements, and the
Dated: January 5, 2018. U.S.C. 2461 note), in order to improve Commission is not required to prepare
Emily W. Murphy, the effectiveness of civil monetary an FRFA in conjunction with this final
Administrator. penalties and to maintain their deterrent rule.
effect.
Accordingly, 41 CFR part 105–70 is Paperwork Reduction Act
The 2015 Act requires agencies to
amended as set forth below: adjust civil monetary penalties under The Paperwork Reduction Act of 1995
their jurisdiction by January 15 each (44 U.S.C. 3501–3521) requires an
PART 105–70—IMPLEMENTATION OF agency to seek and receive approval
year, based on changes in the consumer
THE PROGRAM FRAUD CIVIL price index (CPI–U) using data from from the Office of Management and
REMEDIES ACT OF 1986 October in the previous calendar year. Budget (OMB) before collecting
On December 15, 2017, the Office of information from the public. 44 U.S.C.
■ 1. The authority citation for part 105– Management and Budget published 3507. The agency must submit
70 is revised to read as follows: guidance stating that the CPI–U collections of information in rules to
Authority: 40 U.S.C. 121(c); 31 U.S.C. multiplier for October 2017 is 1.02041.1 OMB in conjunction with the
3809. In order to complete the adjustment for publication of the notice of proposed
January 2018, agencies must multiply rulemaking. 5 CFR 1320.11. This final
* * * * * rule does not contain any collections of
the most recent civil penalty amounts in
§ 105–70.003 [Amended] 46 CFR part 506. information, as defined by 44 U.S.C.
3502(3) and 5 CFR 1320.3(c).
■ 2. Amend § 105–70.003 by— Rulemaking Analyses and Notices
Regulation Identifier Number
■ a. Removing from paragraph (a)(1)(iv) Notice and Effective Date
The Commission assigns a regulation
the amount ‘‘10,781’’ and adding Adjustments under the FCPIAA, as identifier number (RIN) to each
‘‘11,001’’ in its place; and amended by the 2015 Act, are not regulatory action listed in the Unified
■ b. Removing from paragraph (b)(1)(ii) subject to the procedural rulemaking
ethrower on DSK3G9T082PROD with RULES
Agenda of Federal Regulatory and
the amount ‘‘10,781’’ and adding requirements of the Administrative Deregulatory Actions (Unified Agenda).
‘‘11,001’’ in its place. The Regulatory Information Service
1 Office of Management and Budget, M–18–03,
[FR Doc. 2018–00367 Filed 1–10–18; 8:45 am] Center publishes the Unified Agenda in
Implementation of Penalty Inflation Adjustments
BILLING CODE 6820–81–P for 2018, Pursuant to the Federal Civil Penalties April and October of each year. You
Inflation Adjustment Act Improvements Act of
2015, at 1 (Dec. 15, 2017) (M–18–03). 2 FCPIAA section 4(b)(2); M–17–11 at 2.
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Document Created: 2018-01-11 04:54:12
Document Modified: 2018-01-11 04:54:12
| 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 | Effective: February 12, 2018. | |
| Contact | Ms. Jessica Hawkins, Assistant General Counsel, General Law Division (LG), General Services Administration, 1800 F Street NW, Washington DC 20405. Telephone Number 202-501-1460. | |
| FR Citation | 83 FR 1303 | |
| RIN Number | 3090-AJ92 | |
| CFR Associated | Administrative Hearing; Claims and Program Fraud |
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