83 FR 34933 - Program Fraud Civil Remedies: Civil Monetary Penalty Inflation Adjustment
OFFICE OF PERSONNEL MANAGEMENT Federal Register Volume 83, Issue 142 (July 24, 2018)
Federal Register Volume 83, Issue 142 (July 24, 2018)
| Page Range | 34933-34935 | |
| FR Document | 2018-15764 |
[Federal Register Volume 83, Number 142 (Tuesday, July 24, 2018)] [Rules and Regulations] [Pages 34933-34935] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-15764] ======================================================================== 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. 142 / Tuesday, July 24, 2018 / Rules and Regulations [[Page 34933]] OFFICE OF PERSONNEL MANAGEMENT 5 CFR Part 185 RIN 3206-AN39 Program Fraud Civil Remedies: Civil Monetary Penalty Inflation Adjustment AGENCY: Office of Personnel Management (OPM). ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This rule adjusts the level of civil monetary penalties contained in U.S. Office of Personnel Management regulations implementing the Program Fraud Civil Remedies Act of 1986, with an initial ``catch-up'' adjustment under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and Office of Management and Budget guidance. It also makes subsequent annual catch up adjustments. DATES: Effective August 23, 2018. FOR FURTHER INFORMATION CONTACT: Austin Fulk, Office of the General Counsel, Office of Personnel Management, 1900 E St, NW, Washington, DC 20415, Austin.Fulk@opm.gov, (202) 606-1700. SUPPLEMENTARY INFORMATION: I. Background On November 2, 2015, the President signed into law the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Sec. 701 of Pub. L. 114-74) (``the Act''). The Act required agencies to: (1) Adjust the level of civil monetary penalties with an initial ``catch- up'' adjustment through an interim final rulemaking, and (2) make subsequent annual adjustments for inflation. The purpose of these adjustments is to maintain the deterrent effect of civil penalties. On July 19, 2016, OPM made an initial adjustment to the following civil monetary penalties to carry out the requirements of the 2015 Act, based on instructions found in Office of Management and Budget Memorandum M-16-06: ---------------------------------------------------------------------------------------------------------------- Description of the Current Catchup Adjusted CFR citation penalty penalty adjustment penalty ---------------------------------------------------------------------------------------------------------------- 5 CFR 185.103(a)...................... Civil Penalty for False $5,000 $5,781 $10,781 Claims. 5 CFR 185.103(f)(2)................... Civil Penalty for False 5,000 5,781 10,781 Statements. ---------------------------------------------------------------------------------------------------------------- That rule took effect on August 1, 2016. This rule takes into account adjustments for the year 2016 based on inflation for that year. These calculations were made based on guidance contained in Office of Management and Budget Memorandum M-17-11: ---------------------------------------------------------------------------------------------------------------- 2016 Inflation CFR citation Description of the Adjusted 2016 Inflation adjusted penalty penalty adjustment amount ---------------------------------------------------------------------------------------------------------------- 5 CFR 185.103(a)...................... Civil Penalty for False $10,781 $176 $10,957 Claims. 5 CFR 185.103(f)(2)................... Civil Penalty for False 10,781 176 10,957 Statements. ---------------------------------------------------------------------------------------------------------------- This rule makes additional adjustments for the year 2017 based on inflation for that year. These calculations were made based on guidance contained in Office of Management and Budget Memorandum M-18-03: ---------------------------------------------------------------------------------------------------------------- 2016 Inflation CFR citation Description of the Adjusted 2017 Inflation adjusted penalty penalty adjustment amount ---------------------------------------------------------------------------------------------------------------- 5 CFR 185.103(a)...................... Civil Penalty for False $10,957 $223 $11,181 Claims. 5 CFR 185.103(f)(2)................... Civil Penalty for False 10,957 223 11,181 Statements. ---------------------------------------------------------------------------------------------------------------- This final rule is being issued without prior public notice or opportunity for public comments. The 2015 Act's amendments to the Inflation Adjustment Act required the agency to adjust penalties initially through an interim final rulemaking, which did not require the agency to complete a notice and comment process prior to promulgating the interim final rule. The amendments also explicitly required the agency to make subsequent annual adjustments notwithstanding 5 U.S.C. 553 (the section of the Administrative Procedure Act that normally requires agencies to engage in notice and comment). The formula used for adjusting the amount of civil penalties is given by statute, with no discretion provided to OPM regarding the computation of the adjustments. OPM is charged only with performing ministerial computations to determine the amount of adjustment to the civil penalties due to increases in [[Page 34934]] the Consumer Price Index for all Urban Consumers (CPI-U). II. Calculation of Adjustment The Office of Management and Budget (OMB) issued guidance on calculating the initial catch-up adjustment. See February 24, 2016, Memorandum for the Heads of Executive Departments and Agencies, from Shaun Donovan, Director, Office of Management and Budget, re: Implementation of the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. Under this guidance, OPM has identified applicable civil monetary penalties and calculated the catch-up adjustment. A civil monetary penalty is any assessment with a dollar amount that is levied for a violation of a Federal civil statute or regulation, and is assessed or enforceable through a civil action in Federal court or an administrative proceeding. A civil monetary penalty does not include a penalty levied for violation of a criminal statute, or fees for services, licenses, permits, or other regulatory review. The calculated catch-up adjustment is based on the percent change between the Consumer Price Index for all Urban Consumers (CPI-U) for the month of October in the year of the previous adjustment (or in the year of establishment, if no adjustment has been made) and the October 2015 CPI-U. The Office of Management and Budget published guidance on adjusting penalties based on the increase in the CPI-U between October of 2015 and October of 2016, as well as between October of 2016 and 2017. See December 16, 2016, Memorandum for the Heads of Executive Departments and Agencies, from Shaun Donovan, Director, Office of Management and Budget, re: Implementation of the 2017 annual adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015; December 15, 2017 Memorandum for the Heads of Executive Departments and Agencies, from Mick Mulvaney, Director, Office of Management and Budget re: Implementation of Penalty Inflation Adjustments for 2018, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. This guidance provided OPM with the level to which civil penalties should be adjusted as annual inflation adjustments following the initial necessary update to comply with the 2015 Act. Although OPM published the initial interim final rulemaking to adjust its relevant penalties in compliance with the 2015 Act, OPM has not yet issued the 2017 or 2018 adjustments. As a result, the increases associated with the first two annual inflation adjustments mandated under the 2015 Act after the original adjustment are combined here. III. Executive Order Requirements Executive Orders 13563 and 12866 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This rule has been designated a not significant regulatory action, under Executive Order 12866. E.O. 13771. This final rule is not an E.O. 13771 regulatory action because this rule is not significant under E.O. 12866. A. Regulatory Flexibility Act I certify that this regulation will not have a significant economic impact on a substantial number of small entities. The Regulatory Flexibility Act (RFA) requires an agency to prepare a regulatory flexibility analysis for rules unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. The RFA applies only to rules for which an agency is required to first publish a proposed rule. See 5 U.S.C. 603(a) and 604(a). The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 requires agencies to adjust civil penalties annually. No discretion is allowed. Thus, the RFA does not apply to this final rule. B. Small Business Regulatory Enforcement Fairness Act (5 U.S.C. 804(2)) This rule is not a major rule under the Small Business Regulatory Enforcement Fairness Act. This rule: (a) Does not have an annual effect on the economy of $100 million or more. (b) Will not cause a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions. (c) Does not have significant adverse effects on competition, employment, investment, productivity, innovation, or the ability of United States-based enterprises to compete with foreign-based enterprises. C. Unfunded Mandate Reform Act of 1995 (2 U.S.C. 1532) This rule does not involve a Federal mandate that may result in the expenditure by State, local and tribal governments, in the aggregate, or by the private sector, of $100 million or more and that such rulemaking will not significantly or uniquely affect small governments. D. E.O. 12630, Takings This rule does not have takings implications. E. E.O. 13132, Federalism We have examined this rule in accordance with Executive Order 13132, Federalism, and have determined that this rule will not have any negative impact on the rights, roles, and responsibilities of State, local, or Tribal governments. F. E.O. 12988, Civil Justice Reform This rule complies with the requirements of E.O. 12988. Specifically, this rule: (a) Does not unduly burden the judicial system; (b) Meets the criteria of section 3(a) requiring that all regulations be reviewed to eliminate errors and ambiguity and be written to minimize litigation; and (c) Meets the criteria of section 3(b)(2) requiring that all regulations be written in clear language and contain clear legal standards. G. E.O. 13175, Consultation With Indian Tribes In accordance with Executive Order 13175, OPM has evaluated this rule and determined that it has no tribal implications. H. Paperwork Reduction Act This rule does not involve any collections of information subject to the Paperwork Reduction Act of 1995, Public Law 104-13. List of Subjects in 5 CFR Part 185 Program fraud civil remedies, Claims, Penalties, Basis for civil penalties and assessments. Office of Personnel Management. Jeff T.H. Pon, Director. For the reasons set forth in the preamble, OPM amends part 185 of title 5 of the Code of Federal Regulations as follows: [[Page 34935]] PART 185--PROGRAM FRAUD CIVIL REMEDIES: CIVIL MONETARY PENALTY INFLATION ADJUSTMENT 0 1. The authority citation for part 185 continues to read: Authority: 28 U.S.C. 2461 note. Sec. 185.103 [Amended] 0 2. Section 185.103 is amended as follows: 0 a. In paragraph (a) introductory text, revise ``$10,781'' to read ``$11,181''. 0 b. In paragraph (f)(2), revise ``$10,781'' to read ``$11,181''. [FR Doc. 2018-15764 Filed 7-23-18; 8:45 am] BILLING CODE 6325-48-P
![Federal Register / Vol. 83, No. 142 / Tuesday, July 24, 2018 / Rules and Regulations 34935
PART 185—PROGRAM FRAUD CIVIL SUPPLEMENTARY INFORMATION: This Committee to meet each year to consider
REMEDIES: CIVIL MONETARY action, pursuant to 5 U.S.C. 553, supply and demand of spearmint oil
PENALTY INFLATION ADJUSTMENT amends regulations issued to carry out and a marketing policy for the ensuing
a marketing order as defined in 7 CFR marketing year. When such
■ 1. The authority citation for part 185 900.2(j). This rule is issued under considerations indicate a need to
continues to read: Marketing Order No. 985, as amended (7 establish or maintain stable market
Authority: 28 U.S.C. 2461 note. CFR part 985), regulating the handling conditions through volume regulation,
of spearmint oil produced in the Far the Committee recommends salable
§ 185.103 [Amended] West. Part 985 (referred to as the quantity limitations and producer
■ 2. Section 185.103 is amended as ‘‘Order’’) is effective under the allotments to regulate the quantity of
follows: Agricultural Marketing Agreement Act Far West spearmint oil available to the
■ a. In paragraph (a) introductory text, of 1937, as amended (7 U.S.C. 601–674), market.
revise ‘‘$10,781’’ to read ‘‘$11,181’’. hereinafter referred to as the ‘‘Act.’’ The According to § 985.12, ‘‘salable
■ b. In paragraph (f)(2), revise ‘‘$10,781’’ Committee locally administers the quantity’’ is the total quantity of each
to read ‘‘$11,181’’. Order and is comprised of spearmint oil class of oil that handlers may purchase
producers operating within the area of from, or handle on behalf of, producers
[FR Doc. 2018–15764 Filed 7–23–18; 8:45 am]
production, and a public member. during a given marketing year. The total
BILLING CODE 6325–48–P
The Department of Agriculture industry allotment base is the aggregate
(USDA) is issuing this rule in of all allotment bases held individually
conformance with Executive Orders by producers as prescribed under
DEPARTMENT OF AGRICULTURE 13563 and 13175. This rule falls within § 985.53(d)(1). The total allotment base
a category of regulatory actions that the is generally revised each year on June 1
Agricultural Marketing Service Office of Management and Budget due to producer base being lost because
(OMB) exempted from Executive Order of the bona fide effort production
7 CFR Part 985 12866 review. Additionally, because provision of § 985.53(e). The allotment
[Doc. No. AMS–SC–17–0073; SC18–985–1 this rule does not meet the definition of percentage for each class of spearmint
FR] a significant regulatory action, it does oil is derived by dividing the salable
not trigger the requirements contained quantity by the total industry allotment
Marketing Order Regulating the in Executive Order 13771. See OMB’s base for that same class of oil. The
Handling of Spearmint Oil Produced in Memorandum titled ‘‘Interim Guidance allotment percentage is the percentage
the Far West; Salable Quantities and Implementing Section 2 of the Executive used to calculate each producer’s
Allotment Percentages for the 2018– Order of January 30, 2017, titled prorated share of the salable quantity or
2019 Marketing Year ‘Reducing Regulation and Controlling their ‘‘annual allotment,’’ as defined in
AGENCY: Agricultural Marketing Service, Regulatory Costs’ ’’ (February 2, 2017). § 985.13.
This rule has been reviewed under The Committee met on October 25,
USDA.
Executive Order 12988, Civil Justice 2017, to consider its marketing policy
ACTION: Final rule. Reform. Under the Order now in effect, for the 2018–2019 marketing year. At
SUMMARY: This rule implements a salable quantities and allotment that meeting, the Committee determined
recommendation from the Far West percentages may be established for that, based on overall market and
Spearmint Oil Administrative classes of spearmint oil produced in the supply conditions, volume regulation
Committee (Committee) to establish Far West. This rule establishes for Classes 1 and 3 (Scotch and Native,
salable quantities and allotment quantities and percentages for Class 1 respectively) spearmint oil is necessary.
percentages of Class 1 (Scotch) and (Scotch) and Class 3 (Native) spearmint With a unanimous vote, the Committee
Class 3 (Native) spearmint oil for the oil for the 2018–2019 marketing year, recommended the establishment of a
2018–2019 marketing year. This rule which began on June 1, 2018. salable quantity and allotment
The Act provides that administrative percentage for Class 1 (Scotch) and
also removes references to past volume
proceedings must be exhausted before Class 3 (Native) spearmint oil of 760,660
regulation no longer in effect.
parties may file suit in court. Under pounds and 35 percent, and 1,307,947
DATES: Effective August 23, 2018. section 608c(15)(A) of the Act, any pounds and 53 percent, respectively.
FOR FURTHER INFORMATION CONTACT: handler subject to an order may file The Committee also unanimously set its
Barry Broadbent, Marketing Specialist, with USDA a petition stating that the 2018–2019 marketing year trade
or Gary Olson, Regional Director, order, any provision of the order, or any demand estimate for Far West Scotch
Northwest Marketing Field Office, obligation imposed in connection with spearmint oil at 850,000 pounds, and for
Marketing Order and Agreement the order is not in accordance with law Far West Native spearmint oil at
Division, Specialty Crops Program, and request a modification of the order 1,306,605 pounds. Salable quantities
AMS, USDA; Telephone: (503) 326– or to be exempted therefrom. A handler and allotment percentages have been
2724, Fax: (503) 326–7440, or Email: is afforded the opportunity for a hearing placed into effect each season since the
Barry.Broadbent@ams.usda.gov or on the petition. After the hearing, USDA Order’s inception in 1980.
GaryD.Olson@ams.usda.gov. would rule on the petition. The Act
Small businesses may request provides that the district court of the Class 1 (Scotch) Spearmint Oil
information on complying with this United States in any district in which The Committee’s recommended 2018–
regulation by contacting Richard Lower, the handler is an inhabitant, or has his 2019 marketing year salable quantity
jstallworth on DSKBBY8HB2PROD with RULES
Marketing Order and Agreement or her principal place of business, has and allotment percentage for Far West
Division, Specialty Crops Program, jurisdiction to review USDA’s ruling on Scotch spearmint oil represent a
AMS, USDA, 1400 Independence the petition, provided an action is filed decrease from the previous year’s
Avenue SW, STOP 0237, Washington, not later than 20 days after the date of volume restrictions. The 2018–2019
DC 20250–0237; Telephone: (202) 720– the entry of the ruling. marketing year salable quantity of
2491, Fax: (202) 720–8938, or Email: Pursuant to §§ 985.50, 985.51, and 760,660 pounds is 13,985 pounds less
Richard.Lower@ams.usda.gov. 985.52, the Order requires the than the 2017–2018 salable quantity of
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Document Created: 2018-07-24 00:11:00
Document Modified: 2018-07-24 00:11:00
| 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 August 23, 2018. | |
| Contact | Austin Fulk, Office of the General Counsel, Office of Personnel Management, 1900 E St, NW, Washington, DC 20415, [email protected], (202) 606-1700. | |
| FR Citation | 83 FR 34933 | |
| RIN Number | 3206-AN39 | |
| CFR Associated | Program Fraud Civil Remedies; Claims; Penalties and Basis for Civil Penalties and Assessments |
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