83 FR 2073 - Annual Civil Monetary Penalties Inflation Adjustment

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

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

Page Range		2073-2075
FR Document		2018-00558

The Corporation for National and Community Service (CNCS) is updating its regulations to reflect required annual inflation-related increases to the civil monetary penalties in its regulations, pursuant to 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 2073-2075]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-00558]


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CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Parts 1230 and 2554

RIN 3045-AA68


Annual Civil Monetary Penalties Inflation Adjustment

AGENCY: Corporation for National and Community Service.

ACTION: Interim final rule.

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

SUMMARY: The Corporation for National and Community Service (CNCS) is 
updating its regulations to reflect required annual inflation-related 
increases to the civil monetary penalties in its regulations, pursuant 
to the Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015.

[[Page 2074]]


DATES: Effective date: This rule is effective January 15, 2018.
    Comment due date: Technical comments may be submitted until 
February 15, 2018.

ADDRESSES: You may send your comments electronically through the 
Federal government's one-stop rulemaking website at 
www.regulations.gov. Also, you may mail or deliver your comments to 
Stephanie Soper, Law Office Manager, Office of General Counsel, at the 
Corporation for National and Community Service, 250 E Street SW, 
Washington, DC 20525. Due to continued delays in CNCS's receipt of 
mail, we strongly encourage comments to be submitted online 
electronically. The TDD/TTY number is 800 833-3722. You may request 
this notice in an alternative format for the visually impaired.

FOR FURTHER INFORMATION CONTACT: Stephanie Soper, Law Office Manager, 
Office of General Counsel, at 202-606-6747 or email to [email protected]. 
Individuals who use a telecommunications device for the deaf (TTY-TDD) 
may call 800-833-3722 between 8:00 a.m. and 8:00 p.m. Eastern Time, 
Monday through Friday.

SUPPLEMENTARY INFORMATION: 

I. Background

    The Corporation for National and Community Service (CNCS) is a 
federal agency that engages more than five million Americans in service 
through its AmeriCorps, Senior Corps, and Volunteer Generation Fund 
programs to further its mission to improve lives, strengthen 
communities, and foster civic engagement through service and 
volunteering. For more information, visit NationalService.gov.
    The Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015 (Sec. 701 of Pub. L. 114-74) (the ``Act''), which is 
intended to improve the effectiveness of civil monetary penalties and 
to maintain the deterrent effect of such penalties, requires agencies 
to adjust the civil monetary penalties for inflation annually.

II. Method of Calculation

    CNCS has two civil monetary penalties in its regulations. A civil 
monetary penalty under the Act is a penalty, fine, or other sanction 
that is for a specific monetary amount as provided by Federal law or 
has a maximum amount provided for by Federal law and is assessed or 
enforced by an agency pursuant to Federal law and is assessed or 
enforced pursuant to an administrative proceeding or a civil action in 
the Federal courts. (See 28 U.S.C. 2461 note).
    The inflation adjustment for each applicable civil monetary penalty 
is determined using the percent increase in the Consumer Price Index 
for all Urban Consumers (CPI-U) for the month of October of the year in 
which the amount of each civil money penalty was most recently 
established or modified. In the December 15, 2017, OMB Memo for the 
Heads of Executive Agencies and Departments, M-18-03, Implementation of 
Penalty Inflation Adjustments for 2018, Pursuant to the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015, OMB 
published the multiplier for the required annual adjustment. The cost-
of-living adjustment multiplier for 2018, based on the CPI-U for the 
month of October 2017, not seasonally adjusted, is 1.02041.
    CNCS identified two civil penalties in its regulations: (1) The 
penalty associated with Restrictions on Lobbying (45 CFR 1230.400) and 
(2) the penalty associated with the Program Fraud Civil Remedies Act 
(45 CFR 2554.1).
    The civil monetary penalties related to Restrictions on Lobbying 
(Section 319, Pub. L. 101-121; 31 U.S.C. 1352) range from $19,246 to 
$192,459. Using the 2018 multiplier, the new range of possible civil 
monetary penalties is from $19,639 to $196,387.
    The Program Fraud Civil Remedies Act of 1986 (Pub. L. 99-509) civil 
monetary penalty has an upper limit of $10,957. Using the 2018 
multiplier, the new upper limit of the civil monetary penalty is 
$11,181.

III. Summary of Final Rule

    This final rule adjusts the civil monetary penalty amounts related 
to Restrictions on Lobbying (45 CFR 1230.400) and the Program Fraud 
Civil Remedies Act of 1986 (45 CFR 2554.1). The range of civil monetary 
penalties related to Restrictions on Lobbying increase from ``$19,246 
to $192,459'' to ``$19,639 to $196,387.'' The civil monetary penalties 
for the Program Fraud Civil Remedies Act of 1986 increase from ``up to 
$10,957'' to ``up to $11,181.''

IV. Regulatory Procedures

A. Determination of Good Cause for Publication Without Notice and 
Comment

    CNCS finds, under 5 U.S.C. 553(b)(3)(B), that there is good cause 
to except this rule from the public notice and comment provisions of 
the Administrative Procedure Act, 5 U.S.C. 553(b). Because CNCS is 
implementing a final rule pursuant to the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015, which requires CNCS 
to update its regulations based on a prescribed formula, CNCS has no 
discretion in the nature or amount of the change to the civil monetary 
penalties. Therefore, notice and comment for these proscribed updates 
is impracticable and unnecessary. As an interim final rule, no further 
regulatory action is required for the issuance of this legally binding 
rule. If you would like to provide technical comments, however, they 
may be submitted until February 15, 2018.

B. Review Under Procedural Statutes and Executive Orders

    CNCS has determined that making technical changes to the amount of 
civil monetary penalties in its regulations does not trigger any 
requirements under procedural statutes and Executive Orders that govern 
rulemaking procedures.

V. Effective Date

    This rule is effective January 15, 2018. The adjusted civil penalty 
amounts apply to civil penalties assessed on or after January 15, 2018, 
when the violation occurred after November 2, 2015. If the violation 
occurred prior to November 2, 2015, or a penalty was assessed prior to 
August 1, 2016, the pre-adjustment civil penalty amounts in effect 
prior to August 1, 2106, will apply.

List of Subjects

45 CFR Part 1230

    Government contracts, Grant programs, Loan programs, Lobbying, 
Penalties, Reporting and recordkeeping requirements.

45 CFR Part 2554

    Claims, Fraud, Organization and functions (Government agencies), 
Penalties.

    For the reasons discussed in the preamble, under the authority of 
42 U.S.C. 12651c(c), the Corporation for National and Community Service 
amends chapters XII and XXV, title 45 of the Code of Federal 
Regulations as follows:

PART 1230--NEW RESTRICTIONS ON LOBBYING

0
1. The authority citation for part 1230 continues to read as follows:

    Authority:  Section 319, Pub. L. 101-121 (31 U.S.C. 1352); Pub. 
L. 93-113; 42 U.S.C. 4951, et seq.; 42 U.S.C. 5060.

[[Page 2075]]

Sec.  1230.400   [Amended]

0
2. Amend Sec.  1230.400 by:
0
a. In paragraphs (a), (b), and (e), removing ``$19,246'' and adding in 
its place ``$19,639'' each place it appears.
0
b. In paragraphs (a), (b), and (e), removing ``$192,459'' and adding in 
its place ``$196,387'' each place it appears.

Appendix A to Part 1230 [Amended]

0
3. Amend appendix A to part 1230 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.

PART 2554--PROGRAM FRAUD CIVIL REMEDIES ACT REGULATIONS

0
4. The authority citation for part 2554 continues to read as follows:

    Authority:  Pub. L. 99-509, Secs. 6101-6104, 100 Stat. 1874 (31 
U.S.C. 3801-3812); 42 U.S.C. 12651c-12651d.


Sec.  2554.1   [Amended]

0
5. Amend Sec.  2554.1 by removing ``$10,957'' in paragraph (b) and 
adding in its place ``$11,181.''

    Dated: January 5, 2018.
Tim Noelker,
General Counsel.
[FR Doc. 2018-00558 Filed 1-12-18; 8:45 am]
 BILLING CODE 6050-28-P

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
daltland on DSKBBV9HB2PROD with RULES

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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2074 Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations

DATES: Effective date: This rule is action in the Federal courts. (See 28 553(b). Because CNCS is implementing
effective January 15, 2018. U.S.C. 2461 note). a final rule pursuant to the Federal Civil
Comment due date: Technical The inflation adjustment for each Penalties Inflation Adjustment Act
comments may be submitted until applicable civil monetary penalty is Improvements Act of 2015, which
February 15, 2018. determined using the percent increase requires CNCS to update its regulations
ADDRESSES: You may send your in the Consumer Price Index for all based on a prescribed formula, CNCS
comments electronically through the Urban Consumers (CPI–U) for the month has no discretion in the nature or
Federal government’s one-stop of October of the year in which the amount of the change to the civil
rulemaking website at amount of each civil money penalty was monetary penalties. Therefore, notice
www.regulations.gov. Also, you may most recently established or modified. and comment for these proscribed
mail or deliver your comments to In the December 15, 2017, OMB Memo updates is impracticable and
Stephanie Soper, Law Office Manager, for the Heads of Executive Agencies and unnecessary. As an interim final rule,
Office of General Counsel, at the Departments, M–18–03, Implementation no further regulatory action is required
Corporation for National and of Penalty Inflation Adjustments for for the issuance of this legally binding
Community Service, 250 E Street SW, 2018, Pursuant to the Federal Civil rule. If you would like to provide
Washington, DC 20525. Due to Penalties Inflation Adjustment Act technical comments, however, they may
continued delays in CNCS’s receipt of Improvements Act of 2015, OMB be submitted until February 15, 2018.
mail, we strongly encourage comments published the multiplier for the
B. Review Under Procedural Statutes
to be submitted online electronically. required annual adjustment. The cost-
and Executive Orders
The TDD/TTY number is 800 833–3722. of-living adjustment multiplier for 2018,
You may request this notice in an based on the CPI–U for the month of CNCS has determined that making
alternative format for the visually October 2017, not seasonally adjusted, technical changes to the amount of civil
impaired. is 1.02041. monetary penalties in its regulations
CNCS identified two civil penalties in does not trigger any requirements under
FOR FURTHER INFORMATION CONTACT:
its regulations: (1) The penalty procedural statutes and Executive
Stephanie Soper, Law Office Manager,
associated with Restrictions on Orders that govern rulemaking
Office of General Counsel, at 202–606–
Lobbying (45 CFR 1230.400) and (2) the procedures.
6747 or email to ssoper@cns.gov.
penalty associated with the Program
Individuals who use a V. Effective Date
Fraud Civil Remedies Act (45 CFR
telecommunications device for the deaf
2554.1). This rule is effective January 15, 2018.
(TTY–TDD) may call 800–833–3722
The civil monetary penalties related The adjusted civil penalty amounts
between 8:00 a.m. and 8:00 p.m. Eastern
to Restrictions on Lobbying (Section apply to civil penalties assessed on or
Time, Monday through Friday.
319, Pub. L. 101–121; 31 U.S.C. 1352) after January 15, 2018, when the
SUPPLEMENTARY INFORMATION: violation occurred after November 2,
range from $19,246 to $192,459. Using
I. Background the 2018 multiplier, the new range of 2015. If the violation occurred prior to
possible civil monetary penalties is from November 2, 2015, or a penalty was
The Corporation for National and
$19,639 to $196,387. assessed prior to August 1, 2016, the
Community Service (CNCS) is a federal
The Program Fraud Civil Remedies pre-adjustment civil penalty amounts in
agency that engages more than five
Act of 1986 (Pub. L. 99–509) civil effect prior to August 1, 2106, will
million Americans in service through its
monetary penalty has an upper limit of apply.
AmeriCorps, Senior Corps, and
$10,957. Using the 2018 multiplier, the
Volunteer Generation Fund programs to List of Subjects
new upper limit of the civil monetary
further its mission to improve lives,
penalty is $11,181. 45 CFR Part 1230
strengthen communities, and foster
civic engagement through service and III. Summary of Final Rule Government contracts, Grant
volunteering. For more information, programs, Loan programs, Lobbying,
This final rule adjusts the civil
visit NationalService.gov. Penalties, Reporting and recordkeeping
monetary penalty amounts related to
The Federal Civil Penalties Inflation requirements.
Restrictions on Lobbying (45 CFR
Adjustment Act Improvements Act of
1230.400) and the Program Fraud Civil 45 CFR Part 2554
2015 (Sec. 701 of Pub. L. 114–74) (the
Remedies Act of 1986 (45 CFR 2554.1). Claims, Fraud, Organization and
‘‘Act’’), which is intended to improve
The range of civil monetary penalties functions (Government agencies),
the effectiveness of civil monetary
related to Restrictions on Lobbying Penalties.
penalties and to maintain the deterrent
increase from ‘‘$19,246 to $192,459’’ to
effect of such penalties, requires For the reasons discussed in the
‘‘$19,639 to $196,387.’’ The civil
agencies to adjust the civil monetary preamble, under the authority of 42
monetary penalties for the Program
penalties for inflation annually. U.S.C. 12651c(c), the Corporation for
Fraud Civil Remedies Act of 1986
II. Method of Calculation increase from ‘‘up to $10,957’’ to ‘‘up to National and Community Service
$11,181.’’ amends chapters XII and XXV, title 45
CNCS has two civil monetary of the Code of Federal Regulations as
penalties in its regulations. A civil IV. Regulatory Procedures follows:
monetary penalty under the Act is a
penalty, fine, or other sanction that is A. Determination of Good Cause for
PART 1230—NEW RESTRICTIONS ON
for a specific monetary amount as Publication Without Notice and
daltland on DSKBBV9HB2PROD with RULES

LOBBYING
provided by Federal law or has a Comment
maximum amount provided for by CNCS finds, under 5 U.S.C. ■ 1. The authority citation for part 1230
Federal law and is assessed or enforced 553(b)(3)(B), that there is good cause to continues to read as follows:
by an agency pursuant to Federal law except this rule from the public notice Authority: Section 319, Pub. L. 101–121
and is assessed or enforced pursuant to and comment provisions of the (31 U.S.C. 1352); Pub. L. 93–113; 42 U.S.C.
an administrative proceeding or a civil Administrative Procedure Act, 5 U.S.C. 4951, et seq.; 42 U.S.C. 5060.

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Document Created: 2018-01-13 02:02:31
Document Modified: 2018-01-13 02:02:31

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		Interim final rule.
Dates		Effective date: This rule is effective January 15, 2018.
Contact		Stephanie Soper, Law Office Manager, Office of General Counsel, at 202-606-6747 or email to [email protected] Individuals who use a telecommunications device for the deaf (TTY-TDD) may call 800-833-3722 between 8:00 a.m. and 8:00 p.m. Eastern Time, Monday through Friday.
FR Citation		83 FR 2073
RIN Number		3045-AA68
CFR Citation		45 CFR 1230 45 CFR 2554
CFR Associated		Government Contracts; Grant Programs; Loan Programs; Lobbying; Penalties; Reporting and Recordkeeping Requirements; Claims; Fraud and Organization and Functions (government Agencies)