83 FR 2329 - Civil Monetary Penalties Inflation Adjustments for Ethics in Government Act Violations
OFFICE OF GOVERNMENT ETHICS Federal Register Volume 83, Issue 11 (January 17, 2018)
Federal Register Volume 83, Issue 11 (January 17, 2018)
| Page Range | 2329-2331 | |
| FR Document | 2018-00688 |
[Federal Register Volume 83, Number 11 (Wednesday, January 17, 2018)] [Rules and Regulations] [Pages 2329-2331] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-00688] ======================================================================== Rules and Regulations Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. ======================================================================== Federal Register / Vol. 83, No. 11 / Wednesday, January 17, 2018 / Rules and Regulations [[Page 2329]] OFFICE OF GOVERNMENT ETHICS 5 CFR Parts 2634 and 2636 RIN 3209-AA38 Civil Monetary Penalties Inflation Adjustments for Ethics in Government Act Violations AGENCY: Office of Government Ethics. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: In accordance with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, the U.S. Office of Government Ethics (OGE) is issuing this final rule to make the 2018 annual adjustments to the Ethics in Government Act civil monetary penalties. DATES: Effective date: This final rule is effective January 17, 2018. Applicability date: This final rule is applicable January 15, 2018. FOR FURTHER INFORMATION CONTACT: Kimberly L. Sikora Panza, Associate Counsel, General Counsel and Legal Policy Division, Office of Government Ethics, Telephone: 202-482-9300; TTY: 800-877-8339; FAX: 202-482-9237. SUPPLEMENTARY INFORMATION: I. Background In November 2015, Congress passed the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Sec. 701 of Pub. L. 114-74) (the 2015 Act), which further amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410). The 2015 Act required Federal agencies to make inflationary adjustments to the civil monetary penalties (CMPs) within their jurisdiction with an initial ``catch-up'' adjustment through an interim final rule effective no later than August 1, 2016, and further mandates that Federal agencies make subsequent annual inflationary adjustments of their CMPs, to be effective no later than January 15 of each year. The Ethics in Government Act of 1978 as amended, 5 U.S.C. appendix (the Ethics Act) provides for five CMPs.\1\ Specifically, the Ethics Act provides for penalties that can be assessed by an appropriate United States district court, based upon a civil action brought by the Department of Justice, for the following five types of violations: --------------------------------------------------------------------------- \1\ OGE has previously determined, after consultation with the Department of Justice, that the $200 late filing fee for public financial disclosure reports that are more than 30 days overdue (see section 104(d) of the Ethics Act, 5 U.S.C. appendix, 104(d), and 5 CFR 2634.704 of OGE's regulations thereunder) is not a CMP as defined under the Federal Civil Penalties Inflation Adjustment Act, as amended. Therefore, that fee is not being adjusted in this rulemaking (nor was it adjusted by OGE in previous CMP rulemakings), and will remain at its current amount of $200. --------------------------------------------------------------------------- (1) Knowing and willful failure to file, report required information on, or falsification of a public financial disclosure report, 5 U.S.C. appendix 104(a), 5 CFR 2634.701(b); (2) knowing and willful breach of a qualified trust by trustees and interested parties, 5 U.S.C. appendix 102(f)(6)(C)(i), 5 CFR 2634.702(a); (3) negligent breach of a qualified trust by trustees and interested parties, 5 U.S.C. appendix 102(f)(6)(C)(ii), 5 CFR 2634.702(b); (4) misuse of a public report, 5 U.S.C. appendix 105(c)(2), 5 CFR 2634.703; and (5) violation of outside employment/activities provisions, 5 U.S.C. appendix 504(a), 5 CFR 2636.104(a). In compliance with the 2015 Act and guidance issued by the Office of Management and Budget (OMB), on June 28, 2016, the U.S. Office of Government Ethics (OGE) published in the Federal Register an interim final rule, 81 FR 41787 (June 28, 2016), that made the ``catch up'' inflationary adjustments to the five Ethics Act CMPs. On January 24, 2017, OGE published in the Federal Register a rule adopting as final that interim regulation, and also making the 2017 annual inflationary adjustments to the Ethics Act CMPs. See 82 FR 8131 (Jan. 24, 2017). This rulemaking effectuates the 2018 annual inflationary adjustments to the Ethics Act CMPs. In accordance with the 2015 Act, these adjustments are based on the percent change between the Consumer Price Index for all Urban Consumers (CPI-U) for the month of October preceding the date of the adjustment, and the prior year's October CPI- U. Pursuant to OMB guidance, the cost-of-living adjustment multiplier for 2018, based on the CPI-U for October 2017, not seasonally adjusted, is 1.02041. To calculate the 2018 annual adjustment, agencies must multiply the most recent penalty by the 1.02041 multiplier, and round to the nearest dollar. Applying the formula established by the 2015 Act and OMB guidance, OGE is amending the Ethics Act CMPs through this rulemaking to: (1) Increase the three penalties reflected in 5 CFR 2634.702(a), 5 CFR 2634.703, and 5 CFR 2636.104(a)--which were previously adjusted to a maximum of $19,246--to a maximum of $19,639; (2) Increase the penalty reflected in 5 CFR 2634.702(b)--which was previously adjusted to a maximum of $9,623--to a maximum of $9,819; and (3) Increase the penalty reflected in 5 CFR 2634.701(b)--which was previously adjusted to a maximum of $57,847--to a maximum of $59,028. These adjusted penalty amounts will apply to penalties assessed after January 15, 2018 (the applicability date of this final rule) whose associated violations occurred after November 2, 2015. OGE will continue to make future annual inflationary adjustments to the Ethics Act CMPs in accordance with the statutory formula set forth in the 2015 Act and OMB guidance. II. Matters of Regulatory Procedure Administrative Procedure Act Pursuant to 5 U.S.C. 553(b), as Acting Director of the Office of Government Ethics, I find that good cause exists for waiving the general notice of proposed rulemaking and public comment procedures as to these technical amendments. The notice and comment procedures are being waived because these amendments, which concern matters of agency organization, procedure and practice, are being adopted in accordance with statutorily mandated inflation adjustment procedures of the 2015 Act, which specifies that agencies shall adjust civil monetary penalties notwithstanding Section 553 of the Administrative Procedure Act. It is also in the public interest that the adjusted rates for civil monetary penalties under the Ethics in Government Act become effective as [[Page 2330]] soon as possible in order to maintain their deterrent effect. Regulatory Flexibility Act As the Acting Director of the Office of Government Ethics, I certify under the Regulatory Flexibility Act (5 U.S.C. chapter 6) that this final rule would not have a significant economic impact on a substantial number of small entities because it primarily affects current Federal executive branch employees. Paperwork Reduction Act The Paperwork Reduction Act (44 U.S.C. chapter 35) does not apply because this regulation does not contain information collection requirements that require approval of the Office of Management and Budget. Unfunded Mandates Reform Act For purposes of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. chapter 5, subchapter II), this rule would not significantly or uniquely affect small governments and will not result in increased expenditures by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more (as adjusted for inflation) in any one year. Executive Order 13563 and Executive Order 12866 Executive Orders 13563 and 12866 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select the regulatory approaches that maximize net benefits (including economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. The Office of Management and Budget has determined that rulemakings such as this implementing annual inflationary adjustments under the 2015 Act are not significant regulatory actions under Executive Order 12866. Executive Order 12988 As Acting Director of the Office of Government Ethics, I have reviewed this rule in light of section 3 of Executive Order 12988, Civil Justice Reform, and certify that it meets the applicable standards provided therein. List of Subjects 5 CFR Part 2634 Certificates of divestiture, Conflict of interests, Government employees, Penalties, Reporting and recordkeeping requirements, Trusts and trustees. 5 CFR Part 2636 Conflict of interests, Government employees, Penalties. Dated: January 11, 2018. David J. Apol, Acting Director, U.S. Office of Government Ethics. For the reasons set forth in the preamble, the U.S. Office of Government Ethics is amending 5 CFR parts 2634 and 2636 as follows: PART 2634--EXECUTIVE BRANCH FINANCIAL DISCLOSURE, QUALIFIED TRUSTS, AND CERTIFICATES OF DIVESTITURE 0 1. The authority citation for part 2634 continues to read as follows: Authority: 5 U.S.C. App. (Ethics in Government Act of 1978); 26 U.S.C. 1043; Pub. L. 101-410, 104 Stat. 890, 28 U.S.C. 2461 note (Federal Civil Penalties Inflation Adjustment Act of 1990), as amended by Sec. 31001, Pub. L. 104-134, 110 Stat. 1321 (Debt Collection Improvement Act of 1996) and Sec. 701, Pub. L. 114-74 (Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015); E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., p. 215, as modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p. 306. 0 2. Section 2634.701 is amended by revising paragraph (b) to read as follows: Sec. 2634.701 Failure to file or falsifying reports. * * * * * (b) Civil action. The Attorney General may bring a civil action in any appropriate United States district court against any individual who knowingly and willfully falsifies or who knowingly and willfully fails to file or report any information required by filers of public reports under subpart B of this part. The court in which the action is brought may assess against the individual a civil monetary penalty in any amount, not to exceed the amounts set forth below, as provided by section 104(a) of the Act, as amended, and as adjusted in accordance with the inflation adjustment procedures prescribed in the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended: ------------------------------------------------------------------------ Date of violation Penalty ------------------------------------------------------------------------ Violation occurring between Sept. 14, 2007 and Nov. 2, $50,000 2015................................................... Violation occurring after Nov. 2, 2015.................. 59,028 ------------------------------------------------------------------------ * * * * * 0 3. Section 2634.702 is revised to read as follows: Sec. 2634.702 Breaches by trust fiduciaries and interested parties. (a) The Attorney General may bring a civil action in any appropriate United States district court against any individual who knowingly and willfully violates the provisions of Sec. 2634.408(d)(1) or (e)(1). The court in which the action is brought may assess against the individual a civil monetary penalty in any amount, not to exceed the amounts set forth below, as provided by section 102(f)(6)(C)(i) of the Act and as adjusted in accordance with the inflation adjustment procedures prescribed in the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended: ------------------------------------------------------------------------ Date of violation Penalty ------------------------------------------------------------------------ Violation occurring between Sept. 29, 1999 and Nov. 2, $11,000 2015................................................... Violation occurring after Nov. 2, 2015.................. 19,639 ------------------------------------------------------------------------ (b) The Attorney General may bring a civil action in any appropriate United States district court against any individual who negligently violates the provisions of Sec. 2634.408(d)(1) or (e)(1). The court in which the action is brought may assess against the individual a civil monetary penalty in any amount, not to exceed the amounts set forth below, as provided by section 102(f)(6)(C)(ii) of the Act and as adjusted in accordance with the inflation adjustment procedures of the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended: ------------------------------------------------------------------------ Date of violation Penalty ------------------------------------------------------------------------ Violation occurring between Sept. 29, 1999 and Nov. 2, $5,500 2015................................................... Violation occurring after Nov. 2, 2015.................. 9,819 ------------------------------------------------------------------------ 0 4. Section 2634.703 is revised to read as follows: Sec. 2634.703 Misuse of public reports. (a) The Attorney General may bring a civil action against any person who obtains or uses a report filed under this part for any purpose prohibited by section 105(c)(1) of the Act, as incorporated in Sec. 2634.603(f). The court in which the action is brought may assess against the person a civil monetary penalty in any amount, not to exceed the amounts set forth below, as provided by section 105(c)(2) of the Act and as adjusted in accordance with the [[Page 2331]] inflation adjustment procedures prescribed in the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended: ------------------------------------------------------------------------ Date of violation Penalty ------------------------------------------------------------------------ Violation occurring between Sept. 29, 1999 and Nov. 2, $11,000 2015................................................... Violation occurring after Nov. 2, 2015.................. 19,639 ------------------------------------------------------------------------ (b) This remedy shall be in addition to any other remedy available under statutory or common law. PART 2636--LIMITATIONS ON OUTSIDE EARNED INCOME, EMPLOYMENT AND AFFILIATIONS FOR CERTAIN NONCAREER EMPLOYEES 0 5. The authority citation for part 2636 continues to read as follows: Authority: 5 U.S.C. App. (Ethics in Government Act of 1978); Pub. L. 101-410, 104 Stat. 890, 28 U.S.C. 2461 note (Federal Civil Penalties Inflation Adjustment Act of 1990), as amended by Sec. 31001, Pub. L. 104-134, 110 Stat. 1321 (Debt Collection Improvement Act of 1996) and Sec. 701, Pub. L. 114-74 (Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015); E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., p. 215, as modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p. 306. 0 6. Section 2636.104 is amended by revising paragraph (a) to read as follows: Sec. 2636.104 Civil, disciplinary and other action. (a) Civil action. Except when the employee engages in conduct in good faith reliance upon an advisory opinion issued under Sec. 2636.103, an employee who engages in any conduct in violation of the prohibitions, limitations and restrictions contained in this part may be subject to civil action under 5 U.S.C. app. 504(a) and a civil monetary penalty of not more than the amounts set forth below, as adjusted in accordance with the inflation adjustment procedures prescribed in the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended, or the amount of the compensation the individual received for the prohibited conduct, whichever is greater. ------------------------------------------------------------------------ Date of violation Penalty ------------------------------------------------------------------------ Violation occurring between Sept. 29, 1999 and Nov. 2, $11,000 2015................................................... Violation occurring after Nov. 2, 2015.................. 19,639 ------------------------------------------------------------------------ * * * * * [FR Doc. 2018-00688 Filed 1-16-18; 8:45 am] BILLING CODE 6345-03-P
![Federal Register / Vol. 83, No. 11 / Wednesday, January 17, 2018 / Rules and Regulations 2331
inflation adjustment procedures NUCLEAR REGULATORY individuals listed in the FOR FURTHER
prescribed in the Federal Civil Penalties COMMISSION INFORMATION CONTACT section of this
Inflation Adjustment Act of 1990, as document.
amended: 10 CFR Part 50 • NRC’s Agencywide Documents
[NRC–2012–0059] Access and Management System
Date of violation Penalty (ADAMS): You may obtain publicly-
RIN 3150–AJ13 available documents online in the
Violation occurring between
ADAMS Public Documents collection at
Sept. 29, 1999 and Nov. 2, Approval of American Society of
2015 .................................. $11,000 http://www.nrc.gov/reading-rm/
Mechanical Engineers’ Code Cases adams.html. To begin the search, select
Violation occurring after Nov.
2, 2015 .............................. 19,639 AGENCY: Nuclear Regulatory ‘‘ADAMS Public Documents’’ and then
Commission. select ‘‘Begin Web-based ADAMS
(b) This remedy shall be in addition ACTION: Final rule. Search.’’ For problems with ADAMS,
to any other remedy available under please contact the NRC’s Public
statutory or common law. The U.S. Nuclear Regulatory
SUMMARY: Document Room (PDR) reference staff at
Commission (NRC) is amending its 1–800–397–4209, 301–415–4737, or by
PART 2636—LIMITATIONS ON regulations to incorporate by reference email to pdr.resource@nrc.gov. For the
OUTSIDE EARNED INCOME, (IBR) the latest revisions of three convenience of the reader, instructions
EMPLOYMENT AND AFFILIATIONS regulatory guides (RGs) approving new, about obtaining materials referenced in
FOR CERTAIN NONCAREER revised, and reaffirmed Code Cases this document are provided in the
EMPLOYEES published by the American Society of ‘‘Availability of Documents’’ section.
Mechanical Engineers (ASME). This • NRC’s PDR: You may examine and
■ 5. The authority citation for part 2636
action allows nuclear power plant purchase copies of public documents at
continues to read as follows:
licensees and applicants for the NRC’s PDR, Room O1–F21, One
Authority: 5 U.S.C. App. (Ethics in construction permits, operating licenses, White Flint North, 11555 Rockville
Government Act of 1978); Pub. L. 101–410, combined licenses, standard design Pike, Rockville, Maryland 20852.
104 Stat. 890, 28 U.S.C. 2461 note (Federal
Civil Penalties Inflation Adjustment Act of
certifications, standard design approvals FOR FURTHER INFORMATION CONTACT:
1990), as amended by Sec. 31001, Pub. L. and manufacturing licenses to Jennifer Tobin, Office of Nuclear
104–134, 110 Stat. 1321 (Debt Collection voluntarily use the Code Cases listed in Reactor Regulation, telephone: 301–
Improvement Act of 1996) and Sec. 701, Pub. these RGs as alternatives to engineering 415–2328, email: Jennifer.Tobin@
L. 114–74 (Federal Civil Penalties Inflation standards for the construction, inservice nrc.gov; or Giovanni Facco, Office of
Adjustment Act Improvements Act of 2015); inspection (ISI), and inservice testing Nuclear Regulatory Research, telephone:
E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., (IST) of nuclear power plant
p. 215, as modified by E.O. 12731, 55 FR 301–415–6337; email: Giovanni.Facco@
components. These engineering nrc.gov. Both are staff of the U.S.
42547, 3 CFR, 1990 Comp., p. 306.
standards are set forth in the ASME’s Nuclear Regulatory Commission,
■ 6. Section 2636.104 is amended by
Boiler and Pressure Vessel (BPV) Codes Washington, DC 20555–0001.
revising paragraph (a) to read as follows: and ASME Operation and Maintenance
SUPPLEMENTARY INFORMATION:
§ 2636.104 Civil, disciplinary and other (OM) Codes, which are currently
action. incorporated by reference into the Executive Summary
(a) Civil action. Except when the NRC’s regulations. This final rule The purpose of this regulatory action
employee engages in conduct in good announces the availability of the final is to incorporate by reference into the
faith reliance upon an advisory opinion versions of the three RGs that are being NRC’s regulations the latest revisions of
issued under § 2636.103, an employee incorporated by reference. Further, the three RGs. The three RGs identify new,
who engages in any conduct in violation final rule announces the availability of revised, and reaffirmed Code Cases
of the prohibitions, limitations and a related RG, not incorporated by published by the ASME, which the NRC
restrictions contained in this part may reference into the NRC’s regulations that has determined are acceptable for use as
be subject to civil action under 5 U.S.C. lists Code Cases that the NRC has not alternatives to certain provisions of the
app. 504(a) and a civil monetary penalty approved for use. ASME BPV Codes and ASME OM
of not more than the amounts set forth DATES: This final rule is effective on Codes, currently incorporated by
below, as adjusted in accordance with February 16, 2018. The incorporation by reference into the NRC’s regulations.
the inflation adjustment procedures reference of certain publications listed The three RGs that the NRC is
prescribed in the Federal Civil Penalties in the regulation is approved by the incorporating by reference are RG 1.84,
Inflation Adjustment Act of 1990, as Director of the Federal Register as of ‘‘Design, Fabrication, and Materials
amended, or the amount of the February 16, 2018. Code Case Acceptability, ASME Section
compensation the individual received ADDRESSES: Please refer to Docket ID III,’’ Revision 37; RG 1.147, ‘‘Inservice
for the prohibited conduct, whichever is NRC–2012–0059 when contacting the Inspection Code Case Acceptability,
greater. NRC about the availability of ASME Section XI, Division 1,’’ Revision
information for this action. You may 18; and RG 1.192, ‘‘Operation and
Date of violation Penalty obtain publicly-available information Maintenance Code Case Acceptability,
Violation occurring between related to this action by any of the ASME OM Code,’’ Revision 2. This
Sept. 29, 1999 and Nov. 2, following methods: regulatory action allows nuclear power
• Federal Rulemaking Website: Go to plant licensees and applicants for
ethrower on DSK3G9T082PROD with RULES
2015 .................................. $11,000
Violation occurring after Nov. http://www.regulations.gov and search construction permits, operating licenses,
2, 2015 .............................. 19,639 for Docket ID NRC–2012–0059. Address combined licenses, standard design
questions about NRC dockets to Carol certifications, standard design
* * * * * Gallagher; telephone: 301–415–3463; approvals, and manufacturing licenses
[FR Doc. 2018–00688 Filed 1–16–18; 8:45 am] email: Carol.Gallagher@nrc.gov. For to voluntarily use the Code Cases, newly
BILLING CODE 6345–03–P technical questions contact the listed in these revised RGs, as
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Document Created: 2018-10-26 09:55:11
Document Modified: 2018-10-26 09:55:11
| 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 date: This final rule is effective January 17, 2018. Applicability date: This final rule is applicable January 15, 2018. | |
| Contact | Kimberly L. Sikora Panza, Associate Counsel, General Counsel and Legal Policy Division, Office of Government Ethics, Telephone: 202-482-9300; TTY: 800-877-8339; FAX: 202-482-9237. | |
| FR Citation | 83 FR 2329 | |
| RIN Number | 3209-AA38 | |
| CFR Citation | 5
CFR
2634 5 CFR 2636 | |
| CFR Associated | Certificates of Divestiture; Conflict of Interests; Government Employees; Penalties; Reporting and Recordkeeping Requirements and Trusts and Trustees |
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