83_FR_2081 83 FR 2071 - Civil Penalties Adjustment for 2018

83 FR 2071 - Civil Penalties Adjustment for 2018

NATIONAL FOUNDATION FOR THE ARTS AND HUMANITIES
National Endowment for the Arts

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

Page Range2071-2073
FR Document2018-00537

The National Endowment for the Arts (NEA) is adjusting the maximum civil monetary penalties (CMPs) that may be imposed for violations of the Program Fraud Civil Remedies Act (PFCRA) and the NEA's Restrictions on Lobbying to reflect the requirements of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 Act). The 2015 Act further amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (the Inflation Adjustment Act) to improve the effectiveness of civil monetary penalties and to maintain their deterrent effect. This final rule provides the 2018 annual inflation adjustments to the initial ``catch-up'' adjustments made on June 15, 2017.

Federal Register, Volume 83 Issue 10 (Tuesday, January 16, 2018)
[Federal Register Volume 83, Number 10 (Tuesday, January 16, 2018)]
[Rules and Regulations]
[Pages 2071-2073]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-00537]


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NATIONAL FOUNDATION FOR THE ARTS AND HUMANITIES

National Endowment for the Arts

45 CFR Parts 1149 and 1158

RIN 3135-AA33


Civil Penalties Adjustment for 2018

AGENCY: National Endowment for the Arts, National Foundation for the 
Arts and Humanities.

ACTION: Final rule.

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

SUMMARY: The National Endowment for the Arts (NEA) is adjusting the 
maximum civil monetary penalties (CMPs) that may be imposed for 
violations of the Program Fraud Civil Remedies Act (PFCRA) and the 
NEA's Restrictions on Lobbying to reflect the requirements of the 
Federal Civil Penalties Inflation Adjustment Act Improvements Act of 
2015 (the 2015 Act). The 2015 Act further amended the Federal Civil 
Penalties Inflation Adjustment Act of 1990 (the Inflation Adjustment 
Act) to improve the effectiveness of civil monetary penalties and to 
maintain their deterrent effect. This final rule provides the 2018 
annual inflation adjustments to the initial ``catch-up'' adjustments 
made on June 15, 2017.

DATES: Effective date: This rule is effective January 15, 2018. 
Applicability date: The adjusted civil monetary penalties established 
by this rule are applicable only to civil penalties assessed after 
January 15, 2018.

FOR FURTHER INFORMATION CONTACT: Aswathi Zachariah, Assistant General 
Counsel, National Endowment for the Arts, 400 7th St., SW, Washington, 
DC 20506, Telephone: 202-682-5418.

SUPPLEMENTARY INFORMATION:

1. Background

    On December 12, 2017 the NEA issued a final rule entitled ``Federal 
Civil Penalties Adjustments'' which finalized the NEA's June 15, 2017 
interim final rule entitled ``Implementing the Federal Civil Penalties 
Adjustment Act Improvements Act'', implementing the 2015 Act (section 
701 of Pub. L. 114-74), which amended the Inflation Adjustment Act (28 
U.S.C. 2461 note) requiring catch-up and annual adjustments to the 
NEA's CMPs. The 2015 Act requires agencies make annual adjustments to 
its CMPs for inflation.
    A CMP is defined in the Inflation Adjustment Act as any penalty, 
fine, or other sanction that is (1) for a specific monetary amount as 
provided by Federal law, or has a maximum amount provided for by 
Federal law; (2) assessed or enforced by an agency pursuant to Federal 
law; and (3) assessed or enforced pursuant to an administrative 
proceeding or a civil action in the Federal courts.
    These annual inflation adjustments are based on the percentage 
change in the Consumer Price Index for all Urban Consumers (CPI-U) for 
the month of October preceding the date of the adjustment, relative to 
the October CPI-U in the year of the previous adjustment. The formula 
for the amount of a CMP inflation adjustment is prescribed by law, as 
explained in OMB Memorandum M-16-06 (February 24, 2016), and therefore 
the amount of the adjustment is not subject to the exercise of 
discretion by the Chairman of the National Endowment for the Arts 
(Chairman).
    The Office of Management and Budget has issued guidance on 
implementing and calculating the 2018 adjustment under the 2015 Act.\1\ 
Per this guidance, the CPI-U adjustment multiplier for this annual 
adjustment in 1.02041. In its prior rules, the NEA identified two civil 
penalties which require adjustment: The penalty for false statements 
under the PFCRA and the penalty for violations of the NEA's 
Restrictions on Lobbying. The NEA adjusts the amount of those CMPs 
amount accordingly.
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    \1\ OMB Memorandum M-18-03 (December 15, 2017).
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2. Effective Dates

    The inflation adjustments contained in this rule shall apply to any 
violations assessed after January 15, 2018, the effective date of this 
rule.

3. Adjustments

    Two civil penalties in NEA regulations require adjustment in 
accordance with the 2015 Act: (1) The penalty associated with 
Restrictions on Lobbying (45 CFR 1158.400; 45 CFR part 1158, app. A) 
and (2) the penalty associated with the Program Fraud Civil Remedies 
Act (45 CFR 1149.9).

[[Page 2072]]

A. Adjustments to Penalties Under the NEA's Program Fraud Civil 
Remedies Act Regulations

    The current penalty under the PFCRA for false claims and statements 
is currently set at $10,957. The post-adjustment penalty or range is 
obtained by multiplying the pre-adjustment penalty or range by the 
percent change in the CPI-U over the relevant time period and rounding 
to the nearest dollar. Between October 2016 and October 2017, the CPI-U 
increased by 102.041 percent. Therefore, the new post-adjustment 
maximum penalty under the PFCRA for false statements is $10,957 x 
1.02041 = $11,180.63, which rounds to $11,180. Therefore, the maximum 
penalty under the PFCRA for false claims and statements will be 
$11,180.

B. Adjustments to Penalties Under the NEA's Restrictions on Lobbying 
Regulations

    The penalty for violations of the Restrictions on Lobbying is 
currently set at a range of a minimum of $19,246 and a maximum of 
$192,459. The post-adjustment penalty or range is obtained by 
multiplying the pre-adjustment penalty or range by the percent change 
in the CPI-U over the relevant time period and rounding to the nearest 
dollar. Between October 2016 and October 2017, the CPI-U increased by 
102.041 percent. Therefore, the new post-adjustment minimum penalty 
under the Restrictions on Lobbying is $19,246 x 1.02041 = $19,638.81, 
which rounds to $19,639, and the maximum penalty under the Restrictions 
on Lobbying is $192,459 x 1.02041 = $196,387.09, which rounds to 
$196,387. Therefore, range of penalties under the law on the 
Restrictions on Lobbying shall be between $19,639 and $196,387.
Administrative Procedure Act
    Section 553 of the Administrative Procedure Act requires agencies 
to provide an opportunity for notice and comment on rulemaking and also 
requires agencies to delay a rule's effective date for 30 days 
following the date of publication in the Federal Register unless an 
agency finds good cause to forgo these requirements. However, section 
4(b)(2) of the 2015 Act requires agencies to adjust civil monetary 
penalties notwithstanding section 553 of the Administrative Procedure 
Act (APA) and publish annual inflation adjustments in the Federal 
Register. ``This means that the public procedure the APA generally 
requires . . . is not required for agencies to issue regulations 
implementing the annual adjustment.'' OMB Memorandum M-18-03.
    Even if the 2015 Act did not except this rulemaking from section 
553 of the APA, the NEA has good cause to dispense with notice and 
comment. Section 553(b)(B), authorizes agencies to dispense with notice 
and comment procedures for rulemaking if the agency finds good cause 
that notice and comment are impracticable, unnecessary, or contrary to 
public interest. The annual adjustments to civil penalties for 
inflation and the method of calculating those adjustments are 
established by section 5 of the FCPIAA, as amended, leaving no 
discretion for the NEA. Accordingly, public comment would be 
impracticable because the NEA would be unable to consider such comments 
in the rulemaking process.
Regulatory Planning and Review (Executive Order 12866)
    Executive Order 12866 (E.O. 12866) established a process for review 
of rules by the Office of Information and Regulatory Affairs, which is 
within the Office of Management and Budget (OMB). Only ``significant'' 
proposed and final rules are subject to review under this Executive 
Order. ``Significant,'' as used in E.O. 12866, means ``economically 
significant.'' It refers to rules with (1) an impact on the economy of 
$100 million; or that (2) were inconsistent or interfered with an 
action taken or planned by another agency; (3) materially altered the 
budgetary impact of entitlements, grants, user fees, or loan programs; 
or (4) raised novel legal or policy issues.
    This final rule would not be a significant policy change and OMB 
has not reviewed this final rule under E.O. 12866. The NEA has made the 
assessments required by E.O. 12866 and determined that this rule: (1) 
Will not have an effect of $100 million or more on the economy; (2) 
will not adversely affect in a material way the economy, productivity, 
competition, jobs, the environment, public health or safety, or State, 
local, or Tribal governments or communities; (3) will not create a 
serious inconsistency or otherwise interfere with an action taken or 
planned by another agency; (4) does not alter the budgetary effects of 
entitlements, grants, user fees, or loan programs or the rights or 
obligations of their recipients; and (5) does not raise novel legal or 
policy issues.
Executive Order 13771
    Executive Order 13771 section 5 requires that agencies, in most 
circumstances, remove or rescind two regulations for every regulatory 
action (such as the promulgation of regulations) unless they request 
and are specifically exempted from that order's requirements by the 
Director of the Office of Management and Budget (the Director).
    This rule is not subject to the requirements of Executive Order 
13771 because this rule is not significant under Executive Order 12866. 
Per OMB guidance, annual inflation adjustments ``are not significant 
regulatory actions under E.O. 12866, they are not considered E.O. 13771 
regulatory actions.'' \2\ Furthermore, the NEA has requested and has 
received an exemption from the requirement that the agency rescind two 
regulations for every regulation it promulgate from the Director.
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    \2\ Id.
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Federalism (Executive Order 13132)
    This rule does not have Federalism implications, as set forth in 
E.O. 13132. As used in this order, Federalism implications mean 
``substantial direct effects on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government.'' The NEA 
has determined that this rulemaking will not have Federalism 
implications within the meaning of E.O. 13132.
Civil Justice Reform (Executive Order 12988)
    This Directive meets the applicable standards set forth in section 
3(a) and 3(b)(2) of E.O. 12988. Specifically, this final rule is 
written in clear language designed to help reduce litigation.
Indian Tribal Governments (Executive Order 13175)
    Under the criteria in E.O. 13175, the NEA has evaluated this final 
rule and determined that it would have no potential effects on 
Federally recognized Indian Tribes.
Takings (Executive Order 12630)
    Under the criteria in E.O. 12630, this rule does not have 
significant takings implications. Therefore, a takings implication 
assessment is not required.
Regulatory Flexibility Act of 1980 (5 U.S.C. 605(b))
    This rulemaking will not have a significant adverse impact on a 
substantial number of small entities, including small businesses, small 
governmental jurisdictions, or certain small not-for-profit 
organizations.

[[Page 2073]]

Paperwork Reduction Act of 1995 (44 U.S.C., Chapter 35)
    This rulemaking will not impose any ``information collection'' 
requirements under the Paperwork Reduction Act. Under the act, 
information collection means the obtaining or disclosure of facts or 
opinions by or for an agency by 10 or more nonfederal persons.
Unfunded Mandates Act of 1995 (Section 202, Pub. L. 104-4)
    This rulemaking does not contain a Federal mandate that will result 
in the expenditure by State, local, and tribal governments, in the 
aggregate, or by the private sector of $100 million or more in any one 
year.
National Environmental Policy Act of 1969 (5 U.S.C. 804)
    The final rule will not have significant effect on the human 
environment.
Small Business Regulatory Enforcement Fairness Act of 1996 (Sec. 804, 
Pub. L. 104-121)
    This final rule would not be a major rule as defined in section 804 
of the Small Business Regulatory Enforcement Fairness Act of 1996. This 
final rule will not result in an annual effect on the economy of 
$100,000,000 or more, a major increase in costs or prices, significant 
adverse effects on competition, employment, investment, productivity, 
innovation, or on the ability of United States-based companies to 
compete with foreign based companies in domestic and export markets.
E-Government Act of 2002 (44 U.S.C. 3504)
    Section 206 of the E-Government Act requires agencies, to the 
extent practicable, to ensure that all information about that agency 
required to be published in the Federal Register is also published on a 
publicly accessible website. All information about the NEA required to 
be published in the Federal Register may be accessed at www.arts.gov. 
This Act also requires agencies to accept public comments on their 
rules ``by electronic means.'' See heading ``Public Participation'' for 
directions on electronic submission of public comments on this final 
rule.
    Finally, the E-Government Act requires, to the extent practicable, 
that agencies ensure that a publicly accessible Federal Government 
website contains electronic dockets for rulemakings under the 
Administrative Procedure Act of 1946 (5 U.S.C. 551 et seq.). Under this 
Act, an electronic docket consists of all submissions under section 
553(c) of title 5, United States Code; and all other materials that by 
agency rule or practice are included in the rulemaking docket under 
section 553(c) of title 5, United States Code, whether or not submitted 
electronically. The website https://www.regulations.gov contains 
electronic dockets for the NEA's rulemakings under the Administrative 
Procedure Act of 1946.
Plain Writing Act of 2010 (5 U.S.C. 301)
    Under this Act, the term ``plain writing'' means writing that is 
clear, concise, well-organized, and follows other best practices 
appropriate to the subject or field and intended audience. To ensure 
that this rule has been written in plain and clear language so that it 
can be used and understood by the public, the NEA has modeled the 
language of this rule on the Federal Plain Language Guidelines.
Public Participation
    The NEA encourages public participation by ensuring its 
documentation is understandable by the general public, and has written 
this final rule in compliance with E.O. 13563 by ensuring its 
accessibility, consistency, simplicity of language, and overall 
comprehensibility.

List of Subjects in 45 CFR Parts 1149 and 1158

    Administrative practice and procedure, Government contracts, Grant 
programs, Loan programs, Lobbying, Penalties.

    For the reasons stated in the preamble, the NEA amends 45 CFR 
chapter XI, subchapter B, as follows:

PART 1149--PROGRAM FRAUD CIVIL REMEDIES ACT REGULATIONS

0
1. The authority citation for part 1149 continues to read as follows:

    Authority: 5 U.S.C. App. 8G(a)(2); 20 U.S.C. 959; 28 U.S.C. 2461 
note; 31 U.S.C. 3801-3812.


0
2. Revise Sec.  1149.9(a)(1) to read as follows:


Sec.  1149.9  What civil penalties and assessments may I be subjected 
to?

    (a) * * *
    (1) A civil penalty of not more than $10,957 for each false, 
fictitious or fraudulent statement or claim; and
* * * * *

PART 1158--NEW RESTRICTIONS ON LOBBYING

0
3. The authority citation for part 1158 continues to read as follows:

    Authority:  20 U.S.C. 959; 28 U.S.C. 2461; 31 U.S.C. 1352.


0
4. Revise Sec.  1158.400(a), (b), and (e) to read as follows:


Sec.  1158.400  Penalties.

    (a) Any person who makes an expenditure prohibited herein shall be 
subject to a civil penalty of not less than $19,639 and not more than 
$196,387 for each such expenditure.
    (b) Any person who fails to file or amend the disclosure form (see 
appendix B of this part) to be filed or amended if required herein, 
shall be subject to a civil penalty of not less than $19,639 and not 
more than $196,387 for each such failure.
* * * * *
    (e) First offenders under paragraph (a) or (b) of this section 
shall be subject to a civil penalty of $19,639, absent aggravating 
circumstances. Second and subsequent offenses by persons shall be 
subject to an appropriate civil penalty between $19,639 and $196,387, 
as determined by the agency head or his or her designee.
* * * * *

Appendix A to Part 1158 [Amended]

0
5. Amend appendix A to part 1158 by:
0
a. Removing ``$19,246'' and adding in its place ``$19,639'' each place 
it appears.
0
b. Removing ``$192,459'' and adding in its place ``$196,387'' each 
place it appears.

    Dated: January 9, 2018.
Jillian Miller,
Director of Guidelines and Panel Operations, Administrative Services, 
National Endowment for the Arts.
[FR Doc. 2018-00537 Filed 1-12-18; 8:45 am]
 BILLING CODE P



                                                               Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations                                            2071

                                             SUMMARY:   The U.S. Copyright Office is                 extending the submission deadline by                   Act’’, implementing the 2015 Act
                                             further extending the deadline for the                  an additional sixty days. Written                      (section 701 of Pub. L. 114–74), which
                                             submission of written comments in                       comments now are due no later than                     amended the Inflation Adjustment Act
                                             response to its June 12, 2017 and                       April 2, 2018.                                         (28 U.S.C. 2461 note) requiring catch-up
                                             November 13, 2017 interim rules,                          Dated: January 9, 2018.                              and annual adjustments to the NEA’s
                                             regarding changes to the special                        Sarang V. Damle,
                                                                                                                                                            CMPs. The 2015 Act requires agencies
                                             procedure for examining secure tests,                                                                          make annual adjustments to its CMPs
                                                                                                     General Counsel and Associate Register of
                                             and the creation of a new group                                                                                for inflation.
                                                                                                     Copyrights.
                                             registration option for secure tests,                                                                            A CMP is defined in the Inflation
                                                                                                     [FR Doc. 2018–00549 Filed 1–12–18; 8:45 am]
                                             respectively.                                                                                                  Adjustment Act as any penalty, fine, or
                                                                                                     BILLING CODE 1410–30–P
                                             DATES: The comment period for the                                                                              other sanction that is (1) for a specific
                                             interim rules, published on June 12,                                                                           monetary amount as provided by
                                             2017 (82 FR 26850), and November 13,                                                                           Federal law, or has a maximum amount
                                                                                                     NATIONAL FOUNDATION FOR THE
                                             2017 (82 FR 52224), is extended by an                                                                          provided for by Federal law; (2)
                                                                                                     ARTS AND HUMANITIES
                                             additional sixty days. Comments must                                                                           assessed or enforced by an agency
                                             be made in writing and must be                          National Endowment for the Arts                        pursuant to Federal law; and (3)
                                             received in the U.S. Copyright Office no                                                                       assessed or enforced pursuant to an
                                             later than April 2, 2018.                               45 CFR Parts 1149 and 1158                             administrative proceeding or a civil
                                             ADDRESSES: For reasons of government                                                                           action in the Federal courts.
                                             efficiency, the Copyright Office is using               RIN 3135–AA33
                                                                                                                                                              These annual inflation adjustments
                                             the regulations.gov system for the                                                                             are based on the percentage change in
                                                                                                     Civil Penalties Adjustment for 2018
                                             submission and posting of public                                                                               the Consumer Price Index for all Urban
                                             comments in this proceeding. All                        AGENCY:  National Endowment for the                    Consumers (CPI–U) for the month of
                                             comments are therefore to be submitted                  Arts, National Foundation for the Arts                 October preceding the date of the
                                             electronically through regulations.gov.                 and Humanities.                                        adjustment, relative to the October CPI–
                                             Specific instructions for submitting                    ACTION: Final rule.                                    U in the year of the previous
                                             comments are available on the                                                                                  adjustment. The formula for the amount
                                             Copyright Office website at https://                    SUMMARY:   The National Endowment for
                                                                                                     the Arts (NEA) is adjusting the                        of a CMP inflation adjustment is
                                             www.copyright.gov/rulemaking/                                                                                  prescribed by law, as explained in OMB
                                             securetests/. If electronic submission of               maximum civil monetary penalties
                                                                                                     (CMPs) that may be imposed for                         Memorandum M–16–06 (February 24,
                                             comments is not feasible due to lack of                                                                        2016), and therefore the amount of the
                                             access to a computer and/or the                         violations of the Program Fraud Civil
                                                                                                     Remedies Act (PFCRA) and the NEA’s                     adjustment is not subject to the exercise
                                             internet, please contact the Office for
                                                                                                     Restrictions on Lobbying to reflect the                of discretion by the Chairman of the
                                             special instructions using the contact
                                                                                                     requirements of the Federal Civil                      National Endowment for the Arts
                                             information below.
                                                                                                     Penalties Inflation Adjustment Act                     (Chairman).
                                             FOR FURTHER INFORMATION CONTACT:
                                             Robert J. Kasunic, Associate Register of                Improvements Act of 2015 (the 2015                       The Office of Management and Budget
                                             Copyrights and Director of Registration                 Act). The 2015 Act further amended the                 has issued guidance on implementing
                                             Policy and Practice; Sarang Vijay Damle,                Federal Civil Penalties Inflation                      and calculating the 2018 adjustment
                                             General Counsel and Associate Register                  Adjustment Act of 1990 (the Inflation                  under the 2015 Act.1 Per this guidance,
                                             of Copyrights; Erik Bertin, Deputy                      Adjustment Act) to improve the                         the CPI–U adjustment multiplier for this
                                             Director of Registration Policy and                     effectiveness of civil monetary penalties              annual adjustment in 1.02041. In its
                                             Practice; or Kevin R. Amer, Senior                      and to maintain their deterrent effect.                prior rules, the NEA identified two civil
                                             Counsel for Policy and International                    This final rule provides the 2018 annual               penalties which require adjustment: The
                                             Affairs, by telephone at 202–707–8040                   inflation adjustments to the initial                   penalty for false statements under the
                                             or by email at rkas@loc.gov, sdam@                      ‘‘catch-up’’ adjustments made on June                  PFCRA and the penalty for violations of
                                             loc.gov, ebertin@loc.gov, and kamer@                    15, 2017.                                              the NEA’s Restrictions on Lobbying. The
                                             loc.gov.                                                DATES: Effective date: This rule is                    NEA adjusts the amount of those CMPs
                                                                                                     effective January 15, 2018. Applicability              amount accordingly.
                                             SUPPLEMENTARY INFORMATION: On June
                                             12, 2017, the U.S. Copyright Office                     date: The adjusted civil monetary                      2. Effective Dates
                                             issued an interim rule memorializing its                penalties established by this rule are
                                             special procedures for examining secure                 applicable only to civil penalties                        The inflation adjustments contained
                                             texts.1 On November 13, 2017, the                       assessed after January 15, 2018.                       in this rule shall apply to any violations
                                             Office issued an additional interim rule                FOR FURTHER INFORMATION CONTACT:                       assessed after January 15, 2018, the
                                             establishing a new group registration                   Aswathi Zachariah, Assistant General                   effective date of this rule.
                                             option for secure test questions.2 The                  Counsel, National Endowment for the                    3. Adjustments
                                             Office invited public comment on each                   Arts, 400 7th St., SW, Washington, DC
                                             of these interim rules, and previously                  20506, Telephone: 202–682–5418.                          Two civil penalties in NEA
                                             extended its initial deadline for the                   SUPPLEMENTARY INFORMATION:                             regulations require adjustment in
                                             submission of written comments.3 To                                                                            accordance with the 2015 Act: (1) The
                                                                                                     1. Background                                          penalty associated with Restrictions on
                                             ensure that members of the public have
                                                                                                        On December 12, 2017 the NEA
daltland on DSKBBV9HB2PROD with RULES




                                             sufficient time to respond, and to ensure                                                                      Lobbying (45 CFR 1158.400; 45 CFR part
                                             that the Office has the benefit of a                    issued a final rule entitled ‘‘Federal                 1158, app. A) and (2) the penalty
                                             complete record, the Office is further                  Civil Penalties Adjustments’’ which                    associated with the Program Fraud Civil
                                                                                                     finalized the NEA’s June 15, 2017                      Remedies Act (45 CFR 1149.9).
                                               1 82 FR 26850 (June 12, 2017).                        interim final rule entitled
                                               2 82 FR 52224 (Nov. 13, 2017).                        ‘‘Implementing the Federal Civil                         1 OMB Memorandum M–18–03 (December 15,
                                               3 82 FR 56890 (Dec. 1, 2017).                         Penalties Adjustment Act Improvements                  2017).



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                                             2072              Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations

                                             A. Adjustments to Penalties Under the                   annual adjustment.’’ OMB                               (such as the promulgation of
                                             NEA’s Program Fraud Civil Remedies                      Memorandum M–18–03.                                    regulations) unless they request and are
                                             Act Regulations                                            Even if the 2015 Act did not except                 specifically exempted from that order’s
                                                                                                     this rulemaking from section 553 of the                requirements by the Director of the
                                               The current penalty under the PFCRA
                                                                                                     APA, the NEA has good cause to                         Office of Management and Budget (the
                                             for false claims and statements is
                                                                                                     dispense with notice and comment.                      Director).
                                             currently set at $10,957. The post-
                                                                                                     Section 553(b)(B), authorizes agencies to                 This rule is not subject to the
                                             adjustment penalty or range is obtained
                                                                                                     dispense with notice and comment                       requirements of Executive Order 13771
                                             by multiplying the pre-adjustment                       procedures for rulemaking if the agency
                                             penalty or range by the percent change                                                                         because this rule is not significant under
                                                                                                     finds good cause that notice and                       Executive Order 12866. Per OMB
                                             in the CPI–U over the relevant time                     comment are impracticable,
                                             period and rounding to the nearest                                                                             guidance, annual inflation adjustments
                                                                                                     unnecessary, or contrary to public                     ‘‘are not significant regulatory actions
                                             dollar. Between October 2016 and                        interest. The annual adjustments to civil
                                             October 2017, the CPI–U increased by                                                                           under E.O. 12866, they are not
                                                                                                     penalties for inflation and the method of
                                             102.041 percent. Therefore, the new                                                                            considered E.O. 13771 regulatory
                                                                                                     calculating those adjustments are
                                             post-adjustment maximum penalty                                                                                actions.’’ 2 Furthermore, the NEA has
                                                                                                     established by section 5 of the FCPIAA,
                                             under the PFCRA for false statements is                                                                        requested and has received an
                                                                                                     as amended, leaving no discretion for
                                             $10,957 × 1.02041 = $11,180.63, which                   the NEA. Accordingly, public comment
                                                                                                                                                            exemption from the requirement that
                                             rounds to $11,180. Therefore, the                                                                              the agency rescind two regulations for
                                                                                                     would be impracticable because the
                                             maximum penalty under the PFCRA for                                                                            every regulation it promulgate from the
                                                                                                     NEA would be unable to consider such
                                             false claims and statements will be                                                                            Director.
                                                                                                     comments in the rulemaking process.
                                             $11,180.                                                                                                       Federalism (Executive Order 13132)
                                                                                                     Regulatory Planning and Review
                                             B. Adjustments to Penalties Under the                   (Executive Order 12866)                                   This rule does not have Federalism
                                             NEA’s Restrictions on Lobbying
                                                                                                        Executive Order 12866 (E.O. 12866)                  implications, as set forth in E.O. 13132.
                                             Regulations
                                                                                                     established a process for review of rules              As used in this order, Federalism
                                                The penalty for violations of the                    by the Office of Information and                       implications mean ‘‘substantial direct
                                             Restrictions on Lobbying is currently set               Regulatory Affairs, which is within the                effects on the States, on the relationship
                                             at a range of a minimum of $19,246 and                  Office of Management and Budget                        between the national government and
                                             a maximum of $192,459. The post-                        (OMB). Only ‘‘significant’’ proposed and               the States, or on the distribution of
                                             adjustment penalty or range is obtained                 final rules are subject to review under                power and responsibilities among the
                                             by multiplying the pre-adjustment                       this Executive Order. ‘‘Significant,’’ as              various levels of government.’’ The NEA
                                             penalty or range by the percent change                  used in E.O. 12866, means                              has determined that this rulemaking
                                             in the CPI–U over the relevant time                     ‘‘economically significant.’’ It refers to             will not have Federalism implications
                                             period and rounding to the nearest                      rules with (1) an impact on the economy                within the meaning of E.O. 13132.
                                             dollar. Between October 2016 and                        of $100 million; or that (2) were
                                             October 2017, the CPI–U increased by                                                                           Civil Justice Reform (Executive Order
                                                                                                     inconsistent or interfered with an action
                                             102.041 percent. Therefore, the new                                                                            12988)
                                                                                                     taken or planned by another agency; (3)
                                             post-adjustment minimum penalty                         materially altered the budgetary impact                   This Directive meets the applicable
                                             under the Restrictions on Lobbying is                   of entitlements, grants, user fees, or loan            standards set forth in section 3(a) and
                                             $19,246 × 1.02041 = $19,638.81, which                   programs; or (4) raised novel legal or                 3(b)(2) of E.O. 12988. Specifically, this
                                             rounds to $19,639, and the maximum                      policy issues.                                         final rule is written in clear language
                                             penalty under the Restrictions on                          This final rule would not be a                      designed to help reduce litigation.
                                             Lobbying is $192,459 × 1.02041 =                        significant policy change and OMB has
                                             $196,387.09, which rounds to $196,387.                  not reviewed this final rule under E.O.                Indian Tribal Governments (Executive
                                             Therefore, range of penalties under the                 12866. The NEA has made the                            Order 13175)
                                             law on the Restrictions on Lobbying                     assessments required by E.O. 12866 and                   Under the criteria in E.O. 13175, the
                                             shall be between $19,639 and $196,387.                  determined that this rule: (1) Will not                NEA has evaluated this final rule and
                                             Administrative Procedure Act                            have an effect of $100 million or more                 determined that it would have no
                                                                                                     on the economy; (2) will not adversely                 potential effects on Federally recognized
                                                Section 553 of the Administrative                    affect in a material way the economy,
                                             Procedure Act requires agencies to                                                                             Indian Tribes.
                                                                                                     productivity, competition, jobs, the
                                             provide an opportunity for notice and                   environment, public health or safety, or               Takings (Executive Order 12630)
                                             comment on rulemaking and also                          State, local, or Tribal governments or
                                             requires agencies to delay a rule’s                                                                              Under the criteria in E.O. 12630, this
                                                                                                     communities; (3) will not create a
                                             effective date for 30 days following the                                                                       rule does not have significant takings
                                                                                                     serious inconsistency or otherwise
                                             date of publication in the Federal                                                                             implications. Therefore, a takings
                                                                                                     interfere with an action taken or
                                             Register unless an agency finds good                                                                           implication assessment is not required.
                                                                                                     planned by another agency; (4) does not
                                             cause to forgo these requirements.                      alter the budgetary effects of                         Regulatory Flexibility Act of 1980 (5
                                             However, section 4(b)(2) of the 2015 Act                entitlements, grants, user fees, or loan               U.S.C. 605(b))
                                             requires agencies to adjust civil                       programs or the rights or obligations of
                                             monetary penalties notwithstanding                      their recipients; and (5) does not raise                 This rulemaking will not have a
                                             section 553 of the Administrative                                                                              significant adverse impact on a
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                                                                                                     novel legal or policy issues.
                                             Procedure Act (APA) and publish                                                                                substantial number of small entities,
                                             annual inflation adjustments in the                     Executive Order 13771                                  including small businesses, small
                                             Federal Register. ‘‘This means that the                   Executive Order 13771 section 5                      governmental jurisdictions, or certain
                                             public procedure the APA generally                      requires that agencies, in most                        small not-for-profit organizations.
                                             requires . . . is not required for agencies             circumstances, remove or rescind two
                                             to issue regulations implementing the                   regulations for every regulatory action                  2 Id.




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                                                               Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations                                                2073

                                             Paperwork Reduction Act of 1995 (44                     Code; and all other materials that by                  ■ 4. Revise § 1158.400(a), (b), and (e) to
                                             U.S.C., Chapter 35)                                     agency rule or practice are included in                read as follows:
                                                This rulemaking will not impose any                  the rulemaking docket under section
                                                                                                                                                            § 1158.400   Penalties.
                                             ‘‘information collection’’ requirements                 553(c) of title 5, United States Code,
                                             under the Paperwork Reduction Act.                      whether or not submitted electronically.                 (a) Any person who makes an
                                             Under the act, information collection                   The website https://                                   expenditure prohibited herein shall be
                                             means the obtaining or disclosure of                    www.regulations.gov contains electronic                subject to a civil penalty of not less than
                                             facts or opinions by or for an agency by                dockets for the NEA’s rulemakings                      $19,639 and not more than $196,387 for
                                             10 or more nonfederal persons.                          under the Administrative Procedure Act                 each such expenditure.
                                                                                                     of 1946.                                                 (b) Any person who fails to file or
                                             Unfunded Mandates Act of 1995                                                                                  amend the disclosure form (see
                                             (Section 202, Pub. L. 104–4)                            Plain Writing Act of 2010 (5 U.S.C. 301)               appendix B of this part) to be filed or
                                               This rulemaking does not contain a                      Under this Act, the term ‘‘plain                     amended if required herein, shall be
                                             Federal mandate that will result in the                 writing’’ means writing that is clear,                 subject to a civil penalty of not less than
                                             expenditure by State, local, and tribal                 concise, well-organized, and follows                   $19,639 and not more than $196,387 for
                                             governments, in the aggregate, or by the                other best practices appropriate to the                each such failure.
                                             private sector of $100 million or more                  subject or field and intended audience.                *     *      *     *    *
                                             in any one year.                                        To ensure that this rule has been written                (e) First offenders under paragraph (a)
                                                                                                     in plain and clear language so that it can             or (b) of this section shall be subject to
                                             National Environmental Policy Act of
                                                                                                     be used and understood by the public,                  a civil penalty of $19,639, absent
                                             1969 (5 U.S.C. 804)
                                                                                                     the NEA has modeled the language of                    aggravating circumstances. Second and
                                               The final rule will not have                          this rule on the Federal Plain Language                subsequent offenses by persons shall be
                                             significant effect on the human                         Guidelines.                                            subject to an appropriate civil penalty
                                             environment.
                                                                                                     Public Participation                                   between $19,639 and $196,387, as
                                             Small Business Regulatory Enforcement                                                                          determined by the agency head or his or
                                             Fairness Act of 1996 (Sec. 804, Pub. L.                   The NEA encourages public                            her designee.
                                             104–121)                                                participation by ensuring its
                                                                                                     documentation is understandable by the                 *     *      *     *    *
                                               This final rule would not be a major                  general public, and has written this final             Appendix A to Part 1158 [Amended]
                                             rule as defined in section 804 of the                   rule in compliance with E.O. 13563 by
                                             Small Business Regulatory Enforcement                   ensuring its accessibility, consistency,               ■  5. Amend appendix A to part 1158 by:
                                             Fairness Act of 1996. This final rule will              simplicity of language, and overall                    ■  a. Removing ‘‘$19,246’’ and adding in
                                             not result in an annual effect on the                   comprehensibility.                                     its place ‘‘$19,639’’ each place it
                                             economy of $100,000,000 or more, a                                                                             appears.
                                             major increase in costs or prices,                      List of Subjects in 45 CFR Parts 1149                  ■ b. Removing ‘‘$192,459’’ and adding
                                             significant adverse effects on                          and 1158                                               in its place ‘‘$196,387’’ each place it
                                             competition, employment, investment,                      Administrative practice and                          appears.
                                             productivity, innovation, or on the                     procedure, Government contracts, Grant                    Dated: January 9, 2018.
                                             ability of United States-based                          programs, Loan programs, Lobbying,                     Jillian Miller,
                                             companies to compete with foreign                       Penalties.                                             Director of Guidelines and Panel Operations,
                                             based companies in domestic and                           For the reasons stated in the                        Administrative Services, National
                                             export markets.                                         preamble, the NEA amends 45 CFR                        Endowment for the Arts.
                                             E-Government Act of 2002 (44 U.S.C.                     chapter XI, subchapter B, as follows:                  [FR Doc. 2018–00537 Filed 1–12–18; 8:45 am]
                                             3504)                                                                                                          BILLING CODE P
                                                                                                     PART 1149—PROGRAM FRAUD CIVIL
                                                Section 206 of the E-Government Act                  REMEDIES ACT REGULATIONS
                                             requires agencies, to the extent
                                             practicable, to ensure that all                         ■ 1. The authority citation for part 1149
                                             information about that agency required                  continues to read as follows:                          CORPORATION FOR NATIONAL AND
                                             to be published in the Federal Register                                                                        COMMUNITY SERVICE
                                                                                                       Authority: 5 U.S.C. App. 8G(a)(2); 20
                                             is also published on a publicly                         U.S.C. 959; 28 U.S.C. 2461 note; 31 U.S.C.             45 CFR Parts 1230 and 2554
                                             accessible website. All information                     3801–3812.
                                             about the NEA required to be published                  ■ 2. Revise § 1149.9(a)(1) to read as                  RIN 3045–AA68
                                             in the Federal Register may be accessed                 follows:
                                             at www.arts.gov. This Act also requires                                                                        Annual Civil Monetary Penalties
                                             agencies to accept public comments on                   § 1149.9 What civil penalties and                      Inflation Adjustment
                                             their rules ‘‘by electronic means.’’ See                assessments may I be subjected to?
                                             heading ‘‘Public Participation’’ for                       (a) * * *                                           AGENCY:  Corporation for National and
                                             directions on electronic submission of                     (1) A civil penalty of not more than                Community Service.
                                             public comments on this final rule.                     $10,957 for each false, fictitious or                  ACTION: Interim final rule.
                                                Finally, the E-Government Act                        fraudulent statement or claim; and
                                             requires, to the extent practicable, that               *      *    *     *     *                              SUMMARY:   The Corporation for National
                                             agencies ensure that a publicly                                                                                and Community Service (CNCS) is
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                                             accessible Federal Government website                   PART 1158—NEW RESTRICTIONS ON                          updating its regulations to reflect
                                             contains electronic dockets for                         LOBBYING                                               required annual inflation-related
                                             rulemakings under the Administrative                                                                           increases to the civil monetary penalties
                                             Procedure Act of 1946 (5 U.S.C. 551 et                  ■ 3. The authority citation for part 1158              in its regulations, pursuant to the
                                             seq.). Under this Act, an electronic                    continues to read as follows:                          Federal Civil Penalties Inflation
                                             docket consists of all submissions under                  Authority: 20 U.S.C. 959; 28 U.S.C. 2461;            Adjustment Act Improvements Act of
                                             section 553(c) of title 5, United States                31 U.S.C. 1352.                                        2015.


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Document Created: 2018-01-13 02:02:48
Document Modified: 2018-01-13 02:02:48
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 rule is effective January 15, 2018. Applicability date: The adjusted civil monetary penalties established by this rule are applicable only to civil penalties assessed after January 15, 2018.
ContactAswathi Zachariah, Assistant General Counsel, National Endowment for the Arts, 400 7th St., SW, Washington, DC 20506, Telephone: 202-682-5418.
FR Citation83 FR 2071 
RIN Number3135-AA33
CFR Citation45 CFR 1149
45 CFR 1158
CFR AssociatedAdministrative Practice and Procedure; Government Contracts; Grant Programs; Loan Programs; Lobbying and Penalties

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