83 FR 2045 - Implementation of the Federal Civil Penalties Inflation Adjustment Act and Adjustment of Amounts for 2018

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

Federal Register Volume 83, Issue 10 (January 16, 2018)

Page Range		2045-2046
FR Document		2018-00587

The National Aeronautics and Space Administration (NASA) has adopted a final rule making inflation adjustments to civil monetary penalties within its jurisdiction. This final rule represents the annual 2018 inflation adjustments of monetary penalties. These adjustments are required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015.

Federal Register, Volume 83 Issue 10 (Tuesday, January 16, 2018)

[Federal Register Volume 83, Number 10 (Tuesday, January 16, 2018)]
[Rules and Regulations]
[Pages 2045-2046]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2018-00587]

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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

14 CFR Parts 1264 and 1271

[Document Number NASA-17-094: Docket Number-NASA-2017-0004]
RIN 2700-AE30

Implementation of the Federal Civil Penalties Inflation
Adjustment Act and Adjustment of Amounts for 2018

AGENCY: National Aeronautics and Space Administration.

ACTION: Final rule.

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SUMMARY: The National Aeronautics and Space Administration (NASA) has
adopted a final rule making inflation adjustments to civil monetary
penalties within its jurisdiction. This final rule represents the
annual 2018 inflation adjustments of monetary penalties. These
adjustments are required by the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015.

DATES: Effective: This final rule is effective January 15, 2018.

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

SUPPLEMENTARY INFORMATION:

I. Background

The Inflation Adjustment Act, as amended by the 2015 Act, required
Federal agencies to adjust the civil penalty amounts within their
jurisdiction for inflation by July 1, 2016. Subsequent to the 2016
adjustment, Federal agencies were required to make an annual inflation
adjustment by January 15 every year thereafter.\1\ Agencies were
required to 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. On October 20, 2017, NASA
adopted this interim rule as final.\5\ In its final rule, NASA also
amended the interim rule to incorporate the required annual adjustments
for 2017.
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\4\ 82 FR 28760.
\5\ 82 FR 48760.
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Pursuant to the Act, adjustments to the civil penalties are
required to be made by January 15 of each year. The 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
2018 is 1.02041 percent. Pursuant to the 2015 Act, adjustments are
rounded to the nearest dollar.

II. The Final Rule

This final rule makes the required adjustments to civil penalties
for 2018. Applying the 2018 multiplier above, the adjustments for each
penalty are summarized below.

----------------------------------------------------------------------------------------------------------------
Penalty
Law Penalty description 2017 penalty adjusted for
2018
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Program Fraud Civil Remedies Act of 1986...... Maximum Penalties for False $10,957 $11,181
Claims.
Department of the Interior and Related Minimum Penalty for use of 19,246 19,639
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 192,459 196,387
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 19,246 19,639
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 192,459 196,387
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,\6\ as amended by the Debt Collection
Improvement Act of 1996,\7\ and further amended by the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015,\8\ which
requires NASA to adjust the civil penalties within its jurisdiction

[[Page 2046]]

for inflation according to a statutorily prescribed formula.
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\6\ Public Law 101-410, 104 Stat. 890 (1990).
\7\ Public Law 104-134, section 31001(s)(1), 110 Stat. 1321,
1321-373 (1996).
\8\ Public Law 114-74, section 701, 129 Stat. 584, 599 (2015).
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Section 553 of title 5 of the United States Code generally requires
an agency to publish a rule at least 30 days before its effective date
to allow for advance notice and opportunity for public comments.\9\
After the initial adjustment for 2016, however, the Civil Penalties
Inflation Adjustment Act requires agencies to make subsequent annual
adjustments for inflation ``notwithstanding section 553 of title 5,
United States Code.'' Moreover, the 2018 adjustments are made according
to a statutory formula that does not provide for agency discretion.
Accordingly, a delay in effectiveness of the 2018 adjustments is not
required.
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\9\ 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.\10\
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\10\ 5 U.S.C. 603(a), 604(a).
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Paperwork Reduction Act

In accordance with the Paperwork Reduction Act of 1995,\11\ NASA
reviewed this final rule. No collections of information pursuant to the
Paperwork Reduction Act are contained in the final rule.
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\11\ 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 is amending 14 CFR parts 1264 and 1271 as
follows:

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, remove the number ``$10,957'' everywhere it
appears and add in its place the number ``$11,181''.

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 $19,246
and not more than $192,459'' and add in their place the words ``not
less than $19,639 and not more than $196,387''.
0
b. In paragraph (e), remove the two occurrences of ``$19,246'' and add
in their place ``$19,639'' and remove ``$192,459'' and add in its place
``$196,387''.

Appendix A to Part 1271 [Amended]

0
5. In appendix A to part 1271:
0
a. Remove the number ``$19,246'' everywhere it appears and add in its
place the number ``$19,639''.
0
b. Remove the number ``$192,459'' everywhere it appears and add in its
place the number ``$196,387''.

Nanette J. Smith,
NASA Federal Register Liaison Officer.
[FR Doc. 2018-00587 Filed 1-12-18; 8:45 am]
BILLING CODE 7510-13-P

2046 Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations

for inflation according to a statutorily Authority: Section 319, Pub. L. 101–121 Rule 139(d) under the Securities Act
prescribed formula. (31 U.S.C. 1352); Pub. L. 97–258 (31 U.S.C. and certain other conditions.
6301 et seq.)
Section 553 of title 5 of the United DATES: Effective January 16, 2018.
States Code generally requires an agency § 1271.400 [Amended] FOR FURTHER INFORMATION CONTACT:
to publish a rule at least 30 days before Andrew Schoeffler, Special Counsel,
■ 4. In § 1271.400:
its effective date to allow for advance Office of Capital Markets Trends,
■ a. In paragraphs (a) and (b), remove
notice and opportunity for public Division of Corporation Finance, at
the words ‘‘not less than $19,246 and
comments.9 After the initial adjustment (202) 551–3860, U.S. Securities and
not more than $192,459’’ and add in
for 2016, however, the Civil Penalties Exchange Commission, 100 F Street NE,
their place the words ‘‘not less than
Inflation Adjustment Act requires Washington, DC 20549–3628.
$19,639 and not more than $196,387’’.
agencies to make subsequent annual SUPPLEMENTARY INFORMATION: We are
■ b. In paragraph (e), remove the two
adjustments for inflation adopting Rule 135d under the Securities
occurrences of ‘‘$19,246’’ and add in
‘‘notwithstanding section 553 of title 5, Act.1
their place ‘‘$19,639’’ and remove
United States Code.’’ Moreover, the
‘‘$192,459’’ and add in its place I. Background and Summary
2018 adjustments are made according to
‘‘$196,387’’. On July 21, 2010, President Barack
a statutory formula that does not
provide for agency discretion. Appendix A to Part 1271 [Amended] Obama signed the Dodd-Frank Wall
Accordingly, a delay in effectiveness of Street Reform and Consumer Protection
the 2018 adjustments is not required. ■ 5. In appendix A to part 1271: Act (‘‘Dodd-Frank Act’’) 2 into law. Title
■ a. Remove the number ‘‘$19,246’’ VII of the Dodd-Frank Act (‘‘Title VII’’)
IV. Regulatory Requirements provides the Securities and Exchange
everywhere it appears and add in its
Regulatory Flexibility Act place the number ‘‘$19,639’’. Commission (‘‘SEC’’ or the
■ b. Remove the number ‘‘$192,459’’ ‘‘Commission’’) and the Commodity
Because no notice of proposed Futures Trading Commission (‘‘CFTC’’)
everywhere it appears and add in its
rulemaking is required, the Regulatory with the authority to regulate over-the-
place the number ‘‘$196,387’’.
Flexibility Act does not require an counter derivatives. Under Title VII, the
initial or final regulatory flexibility Nanette J. Smith, CFTC regulates ‘‘swaps,’’ the SEC
analysis.10 NASA Federal Register Liaison Officer. regulates ‘‘security-based swaps,’’ and
Paperwork Reduction Act [FR Doc. 2018–00587 Filed 1–12–18; 8:45 am] the CFTC and SEC jointly regulate
BILLING CODE 7510–13–P ‘‘mixed swaps.’’ 3
In accordance with the Paperwork Title VII amended the Securities Act
Reduction Act of 1995,11 NASA and the Securities Exchange Act of 1934
reviewed this final rule. No collections SECURITIES AND EXCHANGE (‘‘Exchange Act’’) 4 to include ‘‘security-
of information pursuant to the COMMISSION based swaps’’ in the definition of
Paperwork Reduction Act are contained ‘‘security.’’ 5 As a result, ‘‘security-based
in the final rule. 17 CFR Part 230 swaps’’ are subject to the Securities Act
and the Exchange Act and the rules and
List of Subjects in 14 CFR Parts 1264 [Release No. 33–10450; File No. S7–09–14] regulations thereunder. Section 5 of the
and 1271 Securities Act requires that any offer or
RIN 3235–AL41
Claims, Lobbying, Penalties. sale of a security must either be
Treatment of Certain Communications registered under the Securities Act or be
For the reasons stated in the Involving Security-Based Swaps That made pursuant to an exemption from
preamble, the National Aeronautics and May Be Purchased Only by Eligible registration.6 As a result, counterparties
Space Administration is amending 14 Contract Participants
CFR parts 1264 and 1271 as follows: 1 15 U.S.C. 77a et seq.
AGENCY: Securities and Exchange 2 Public Law 111–203, 124 Stat. 1376 (2010).
PART 1264—IMPLEMENTATION OF Commission. 3 The SEC and the CFTC, in consultation with the
THE PROGRAM FRAUD CIVIL ACTION: Final rule. Board of Governors of the Federal Reserve System,
PENALTIES ACT OF 1986 jointly further defined the product and
intermediary terms used in Title VII, including
SUMMARY: We are adopting a rule under ‘‘swap,’’ ‘‘security-based swap,’’ ‘‘swap dealer,’’
■ 1. The authority citation for part 1264 the Securities Act of 1933 (‘‘Securities ‘‘security-based swap dealer,’’ ‘‘major swap
continues to read as follows: Act’’) to provide that certain participant,’’ ‘‘major security-based swap
communications involving security- participant,’’ ‘‘eligible contract participant,’’ and
Authority: 31 U.S.C. 3809, 51 U.S.C. ‘‘security-based swap agreement.’’ See Further
20113(a). based swaps will not be deemed to Definition of ‘‘Swap Dealer,’’ ‘‘Security-Based Swap
constitute ‘‘offers’’ of such security- Dealer,’’ ‘‘Major Swap Participant,’’ ‘‘Major
§ 1264.102 [Amended] based swaps for purposes of Section 5 Security-Based Swap Participant’’ and ‘‘Eligible
of the Securities Act. The final rule Contract Participant’’, Release No. 34–66868 (Apr.
■ 2. In § 1264.102, remove the number 27, 2012), 77 FR 30596 (May 23, 2012)
‘‘$10,957’’ everywhere it appears and covers the publication or distribution of (‘‘Intermediary Definitions Adopting Release’’), and
add in its place the number ‘‘$11,181’’. price quotes that relate to security-based Further Definition of ‘‘Swap,’’ ‘‘Security-Based
swaps that may be purchased only by Swap,’’ and ‘‘Security-Based Swap Agreement’’;
persons who are eligible contract Mixed Swaps; Security-Based Swap Agreement
PART 1271—NEW RESTRICTIONS ON Recordkeeping, Release No. 33–9338 (Jul. 18, 2012),
LOBBYING participants (‘‘covered SBS’’) and are 77 FR 48208 (Aug. 13, 2012) (‘‘Product Definitions
traded or processed on or through
daltland on DSKBBV9HB2PROD with RULES

Adopting Release’’).
■ 3. The authority citation for part 1271 certain trading platforms. The final rule 4 15 U.S.C. 78a et seq.

continues to read as follows: also covers a broker, dealer, or security- 5 See Sections 761(a)(2) and 768(a)(1) of the

based swap dealer’s publication or Dodd-Frank Act (amending Section 3(a)(10) of the
Exchange Act [15 U.S.C. 78c(a)(10)] and Section
9 See 5 U.S.C. 533(d). distribution of written communications 2(a)(1) of the Securities Act [15 U.S.C. 77b(a)(1)],
10 5U.S.C. 603(a), 604(a). that discuss covered SBS and that meet respectively).
11 44 U.S.C. 3506. the definition of ‘‘research report’’ in 6 See 15 U.S.C. 77e.

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Document Created: 2018-01-13 02:02:22
Document Modified: 2018-01-13 02:02:22

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: This final rule is effective January 15, 2018.
Contact		Bryan R. Diederich, Office of the General Counsel, NASA Headquarters, telephone (202) 358-0216.
FR Citation		83 FR 2045
RIN Number		2700-AE30
CFR Citation		14 CFR 1264 14 CFR 1271
CFR Associated		Claims; Lobbying and Penalties