83 FR 3944 - Civil Monetary Penalties Inflation Adjustment
DEPARTMENT OF JUSTICE Federal Register Volume 83, Issue 19 (January 29, 2018)
Federal Register Volume 83, Issue 19 (January 29, 2018)
| Page Range | 3944-3948 | |
| FR Document | 2018-01464 |
[Federal Register Volume 83, Number 19 (Monday, January 29, 2018)] [Rules and Regulations] [Pages 3944-3948] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-01464] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF JUSTICE 28 CFR Part 85 [Docket No. OAG 159; AG Order No. 4093-2018] Civil Monetary Penalties Inflation Adjustment AGENCY: Department of Justice. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Department of Justice is adjusting for inflation the civil monetary penalties assessed or enforced by components of the Department, in accordance with the provisions of the Bipartisan Budget Act of 2015, for penalties assessed after January 29, 2018, with respect to violations occurring after November 2, 2015. DATES: This rule is effective January 29, 2018. FOR FURTHER INFORMATION CONTACT: Robert Hinchman, Senior Counsel, Office of Legal Policy, U.S. Department of Justice, Room 4252 RFK Building, 950 Pennsylvania Avenue NW, Washington, DC 20530, telephone (202) 514-8059 (not a toll-free number). SUPPLEMENTARY INFORMATION: I. Statutory Process for Implementing Annual Inflation Adjustments Section 701 of the Bipartisan Budget Act of 2015, Public Law 114-74 (Nov. 2, 2015) (``BBA''), 28 U.S.C. 2461 note, substantially revised the prior provisions of the Federal Civil Monetary Penalties Inflation Adjustment Act of 1990, Public Law 101-410 (the ``Inflation Adjustment Act''), and substituted a different statutory formula for calculating inflation adjustments on an annual basis. In accordance with the provisions of the BBA, on June 30, 2016 (81 FR 42491), the Department of Justice published an interim rule to adjust for inflation the civil monetary penalties assessed or enforced by components of the Department after August 1, 2016, with respect to violations occurring after November 2, 2015, the date of enactment of the BBA. Readers may refer to the Supplementary Information (also known as the preamble) of the Department's 2016 interim rule for additional background information regarding the statutory authority for adjustments of civil monetary penalty amounts to take account of inflation and the Department's past implementation of inflation adjustments. The BBA also provides for agencies to adjust their civil penalties on January 15 of each year to account for inflation during the preceding year, rounded to the nearest dollar. Accordingly, on February 3, 2017 (82 FR 9131), the Department published a final rule to adjust for inflation the civil monetary penalties assessed or enforced by components of the Department after that date, with respect to violations occurring after November 2, 2015. II. Inflation Adjustments Made by This Rule As required, the Department is publishing this final rule to adjust the civil penalties that were most recently adjusted as of February 3, 2017. Under the statutory formula, the adjustments made by this rule are based on the Bureau of Labor Statistics' Consumer Price Index for October 2017. The OMB Memorandum for the Heads of Executive Departments and Agencies M-18-03 (Dec. 15, 2017), https://www.whitehouse.gov/wp-content/uploads/2017/11/M-18-03.pdf (last visited Jan. 1, 2018), instructs that the applicable inflation factor for this adjustment is 1.02041. Accordingly, this rule adjusts the civil penalty amounts in 28 CFR 85.5 by applying this inflation factor mechanically to each of the civil penalty amounts listed (rounded to the nearest dollar). Example:In 2016, the Program Fraud Civil Remedies Act penalty was increased to $10,781 in accordance with the adjustment requirements of the BBA. For 2017, where the applicable inflation factor was 1.01636, the existing penalty of $10,781 was multiplied by 1.01636 and revised to $10,957 (rounded to the nearest dollar). For this final rule in 2018, where the applicable inflation factor is 1.02041, the existing penalty of $10,957 is multiplied by 1.02041 and revised to $11,181 (rounded to the nearest dollar). This rule adjusts for inflation civil monetary penalties within the jurisdiction of the Department of Justice for purposes of the Inflation Adjustment Act, as amended. Other agencies are responsible for the inflation adjustments of certain other civil monetary penalties that the Department's litigating components bring suit to collect. The reader should consult the regulations of those other agencies for inflation adjustments to those penalties. III. Effective Date of Adjusted Civil Penalty Amounts Under this rule, the adjusted civil penalty amounts are applicable only to civil penalties assessed after January 29, 2018, with respect to violations occurring after November 2, 2015, the date of enactment of the BBA. The penalty amounts set forth in the existing table in 28 CFR 85.5 are applicable to civil penalties assessed after August 1, 2016, and on or before the effective date of this rule, with respect to violations occurring after November 2, 2015. Civil penalties for violations occurring on or before November 2, 2015, and assessments made on or before August 1, 2016, will continue to be subject to the civil monetary penalty amounts set forth in the Department's regulations in 28 CFR parts 20, 22, 36, 68, 71, 76, and 85 as such regulations were in effect prior to August 1, 2016 (or as set forth by statute if the amount had not yet been adjusted by regulation prior to August 1, 2016). Statutory and Regulatory Analyses Administrative Procedure Act The BBA provides that, for each annual adjustment made after the initial adjustments of civil penalties in 2016, the head of an agency shall adjust the civil monetary penalties each year notwithstanding 5 U.S.C. 553. Accordingly, this rule is being issued as a final rule without prior notice and public comment, and without a delayed effective date. [[Page 3945]] Regulatory Flexibility Act Only those entities that are determined to have violated Federal law and regulations would be affected by the increase in the civil penalty amounts made by this rule. A Regulatory Flexibility Act analysis is not required for this rule because publication of a notice of proposed rulemaking was not required. See 5 U.S.C. 603(a). Executive Orders 12866 and 13563--Regulatory Review This final rule has been drafted in accordance with Executive Order 12866, ``Regulatory Planning and Review,'' section 1(b), The Principles of Regulation, and in accordance with Executive Order 13563, ``Improving Regulation and Regulatory Review,'' section 1, General Principles of Regulation. Executive Orders 12866 and 13563 direct agencies, in certain circumstances, 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). The Department of Justice has determined that this rule is not a ``significant regulatory action'' under Executive Order 12866, ``Regulatory Planning and Review,'' section 3(f), and, accordingly, this rule has not been reviewed by the Office of Management and Budget. This final rule implements the BBA by making an across-the-board adjustment of the civil penalty amounts in 28 CFR 85.5 to account for inflation since the adoption of the Department's final rule published on February 3, 2017. Executive Order 13132--Federalism This rule will not have 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. Therefore, in accordance with Executive Order 13132, it is determined that this rule does not have sufficient federalism implications to warrant the preparation of a Federalism Assessment. Executive Order 12988--Civil Justice Reform This regulation meets the applicable standards set forth in sections 3(a) and 3(b)(2) of Executive Order 12988. Unfunded Mandates Reform Act of 1995 This rule will not 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, and it will not significantly or uniquely affect small governments. Therefore, no actions were deemed necessary under the provisions of the Unfunded Mandates Reform Act of 1995. Congressional Review Act This rule is not a major rule as defined by the Congressional Review Act, 5 U.S.C. 804. It will not result in an annual effect on the economy of $100 million or more; a major increase in costs or prices for consumers, individual industries, Federal, State, or local government agencies, or geographic regions; or significant adverse effects on competition, employment, investment, productivity, innovation, or on the ability of United States-based enterprises to compete with foreign-based enterprises in domestic and export markets. List of Subjects in 28 CFR Part 85 Administrative practice and procedure, Penalties. Accordingly, for the reasons set forth in the preamble, chapter I of Title 28 of the Code of Federal Regulations is amended as follows: PART 85--CIVIL MONETARY PENALTIES INFLATION ADJUSTMENT 0 1. The authority citation for part 85 continues to read as follows: Authority: 5 U.S.C. 301, 28 U.S.C. 503; Pub. L. 101-410, 104 Stat. 890, as amended by Pub. L. 104-134, 110 Stat. 1321; Pub. L. 114-74, section 701, 28 U.S.C. 2461 note. 0 2. Revise Sec. 85.5 to read as follows: Sec. 85.5 Adjustments to penalties for violations occurring after November 2, 2015. For civil penalties assessed after January 29, 2018, whose associated violations occurred after November 2, 2015, the civil monetary penalties provided by law within the jurisdiction of the Department are adjusted as set forth in the sixth column of the following table. For civil penalties assessed after February 3, 2017, and on or before January 29, 2018, whose associated violations occurred after November 2, 2015, the civil monetary penalties provided by law within the jurisdiction of the Department are those set forth in the fifth column of the following table. For civil penalties assessed after August 1, 2016, and on or before February 3, 2017, whose associated violations occurred after November 2, 2015, the civil monetary penalties provided by law within the jurisdiction of the Department are those set forth in the fourth column of the following table. All figures set forth in this table are maximum penalties, unless otherwise indicated. -------------------------------------------------------------------------------------------------------------------------------------------------------- DOJ penalty DOJ penalty U.S.C. citation Name/description CFR citation DOJ penalty assessed assessed after 2/3/ assessed after 1/29/ after 8/1/16 ($) 17 ($) 1 2018 ($) 2 -------------------------------------------------------------------------------------------------------------------------------------------------------- ATF -------------------------------------------------------------------------------------------------------------------------------------------------------- 18 U.S.C. 922(t)(5)............... Brady Law--Nat'l Instant ..................... 8,162................ 8,296............... 8,465. Criminal Check System; Transfer of firearm without checking NICS. 18 U.S.C. 924(p).................. Child Safety Lock Act; ..................... 2,985................ 3,034............... 3,096. Secure gun storage or safety device, violation. -------------------------------------------------------------------------------------------------------------------------------------------------------- Civil Division -------------------------------------------------------------------------------------------------------------------------------------------------------- 12 USC 1833a(b)(1)................ Financial Institutions 28 CFR 85.3(a)(6).... 1,893,610............ 1,924,589........... 1,963,870. Reform, Recovery, and Enforcement Act (FIRREA) Violation. 12 U.S.C. 1833a(b)(2)............. FIRREA Violation 28 CFR 85.3(a)(7).... 1,893,610............ 1,924,589........... 1,963,870. (continuing) (per day). 12 U.S.C. 1833a(b)(2)............. FIRREA Violation 28 CFR 85.3(a)(7).... 9,468,050............ 9,622,947........... 9,819,351. (continuing). 22 U.S.C. 2399b(a)(3)(A).......... Foreign Assistance Act; 28 CFR 85.3(a)(8).... 5,500................ 5,590............... 5,704. Fraudulent Claim for Assistance (per act). 31 U.S.C. 3729(a)................. False Claims Act; 3 28 CFR 85.3(a)(9).... Min. 10,781, Max. Min. 10,957, Max. Min. 11,181, Max. Violations. 21,563. 21,916. 22,363. [[Page 3946]] 31 U.S.C. 3802(a)(1).............. Program Fraud Civil 28 CFR 71.3(a)....... 10,781............... 10,957.............. 11,181. Remedies Act; Violations Involving False Claim (per claim). 31 U.S.C. 3802(a)(2).............. Program Fraud Civil 28 CFR 71.3(f)....... 10,781............... 10,957.............. 11,181. Remedies Act; Violation Involving False Statement (per statement). 40 U.S.C. 123(a)(1)(A)............ Federal Property and 28 CFR 85.3(a)(12)... 5,500................ 5,590............... 5,704. Administrative Services Act; Violation Involving Surplus Government Property (per act). 41 U.S.C. 8706(a)(1)(B)........... Anti-Kickback Act; 28 CFR 85.3(a)(13)... 21,563............... 21,916.............. 22,363. Violation Involving Kickbacks 4 (per occurrence). 18 U.S.C. 2723(b)................. Driver's Privacy ..................... 7,954................ 8,084............... 8,249. Protection Act of 1994; Prohibition on Release and Use of Certain Personal Information from State Motor Vehicle Records--Substantial Non- compliance (per day). 18 U.S.C. 216(b).................. Ethics Reform Act of 1989; 28 CFR 85.3(c)....... 94,681............... 96,230.............. 98,194. Penalties for Conflict of Interest Crimes 5 (per violation). 41 U.S.C. 2105(b)(1).............. Office of Federal ..................... 98,935............... 100,554............. 102,606. Procurement Policy Act; 6 Violation by an individual (per violation). 41 U.S.C. 2105(b)(2).............. Office of Federal ..................... 989,345.............. 1,005,531........... 1,026,054. Procurement Policy Act; 6 Violation by an organization (per violation). 42 U.S.C. 5157(d)................. Disaster Relief Act of ..................... 12,500............... 12,705.............. 12,964. 1974; 7 Violation (per violation). -------------------------------------------------------------------------------------------------------------------------------------------------------- Civil Rights Division (excluding immigration-related penalties) -------------------------------------------------------------------------------------------------------------------------------------------------------- 18 U.S.C. 248(c)(2)(B)(i)......... Freedom of Access to 28 CFR 85.3(b)(1)(i). 15,909............... 16,169.............. 16,499. Clinic Entrances Act of 1994 (``FACE Act''); Nonviolent physical obstruction, first violation. 18 U.S.C. 248(c)(2)(B)(ii)........ FACE Act; Nonviolent 28 CFR 85.3(b)(1)(ii) 23,863............... 24,253.............. 24,748. physical obstruction, subsequent violation. 18 U.S.C. 248(c)(2)(B)(i)......... FACE Act; Violation other 28 CFR 85.3(b)(2)(i). 23,863............... 24,253.............. 24,748. than a nonviolent physical obstruction, first violation. 18 U.S.C. 248(c)(2)(B)(ii)........ FACE Act; Violation other 28 CFR 85.3(b)(2)(ii) 39,772............... 40,423.............. 41,248. than a nonviolent physical obstruction, subsequent violation. 42 U.S.C. 3614(d)(1)(C)(i)........ Fair Housing Act of 1968; 28 CFR 85.3(b)(3)(i). 98,935............... 100,554............. 102,606. first violation. 42 U.S.C. 3614(d)(1)(C)(ii)....... Fair Housing Act of 1968; 28 CFR 85.3(b)(3)(ii) 197,869.............. 201,106............. 205,211. subsequent violation. 42 U.S.C. 12188(b)(2)(C)(i)....... Americans With 28 CFR 89,078............... 90,535.............. 92,383. Disabilities Act; Public 36.504(a)(3)(i). accommodations for individuals with disabilities, first violation. 42 U.S.C. 12188(b)(2)(C)(ii)...... Americans With 28 CFR 178,156.............. 181,071............. 184,767. Disabilities Act; Public 36.504(a)(3)(ii). accommodations for individuals with disabilities, subsequent violation. 50 U.S.C. 4041(b)(3).............. Servicemembers Civil 28 CFR 85.3(b)(4)(i). 59,810............... 60,788.............. 62,029. Relief Act of 2003; first violation. 50 U.S.C. 4041(b)(3).............. Servicemembers Civil 28 CFR 85.3(b)(4)(ii) 119,620.............. 121,577............. 124,058. Relief Act of 2003; subsequent violation. -------------------------------------------------------------------------------------------------------------------------------------------------------- Criminal Division -------------------------------------------------------------------------------------------------------------------------------------------------------- 18 U.S.C. 983(h)(1)............... Civil Asset Forfeiture ..................... Min. 342, Max. 6,834. Min. 348, Max. 6,946 Min. 355, Max. Reform Act of 2000; 7,088. Penalty for Frivolous Assertion of Claim. 18 U.S.C. 1956(b)................. Money Laundering Control ..................... 21,563............... 21,916.............. 22,363. Act of 1986; Violation 8. -------------------------------------------------------------------------------------------------------------------------------------------------------- DEA -------------------------------------------------------------------------------------------------------------------------------------------------------- 21 U.S.C. 844a(a)................. Anti-Drug Abuse Act of 28 CFR 76.3(a)....... 19,787............... 20,111.............. 20,521. 1988; Possession of small amounts of controlled substances (per violation). 21 U.S.C. 961(1).................. Controlled Substance 28 CFR 85.3(d)....... 68,750............... 69,875.............. 71,301. Import Export Act; Drug abuse, import or export. 21 U.S.C. 842(c)(1)(A)............ Controlled Substances Act ..................... 62,500............... 63,523.............. 64,820. (``CSA''); Violations of 842(a)--other than (5), (10) and (16)--Prohibited acts re: controlled substances (per violation). 21 U.S.C. 842(c)(1)(B)............ CSA; Violations of ..................... 14,502............... 14,739.............. 15,040. 842(a)(5) and (10)-- Prohibited acts re: controlled substances. 21 U.S.C. 842(c)(1)(C)............ CSA; Violation of 825(e) ..................... 500,855.............. 509,049............. 519,439. by importer, exporter, manufacturer, or distributor--False labeling of anabolic steroids (per violation). 21 U.S.C. 842(c)(1)(D)............ CSA; Violation of 825(e) ..................... 1,002................ 1,018............... 1,039. at the retail level-- False labeling of anabolic steroids (per violation). 21 U.S.C. 842(c)(2)(C)............ CSA; Violation of ..................... 375,613.............. 381,758............. 389,550. 842(a)(11) by a business-- Distribution of laboratory supply with reckless disregard 9. 21 U.S.C. 856(d).................. Illicit Drug Anti- ..................... 321,403.............. 326,661............. 333,328. Proliferation Act of 2003; Maintaining drug- involved premises 10. -------------------------------------------------------------------------------------------------------------------------------------------------------- [[Page 3947]] Immigration-Related Penalties -------------------------------------------------------------------------------------------------------------------------------------------------------- 8 U.S.C. 1324a(e)(4)(A)(i)........ Immigration Reform and 28 CFR 68.52(c)(1)(i) Min. 539, Max. 4,313. Min. 548, Max. 4,384 Min. 559, Max. Control Act of 1986 4,473. (``IRCA''); Unlawful employment of aliens, first order (per unauthorized alien). 8 U.S.C. 1324a(e)(4)(A)(ii)....... IRCA; Unlawful employment 28 CFR Min. 4,313, Max. Min. 4,384, Max. Min. 4,473, Max. of aliens, second order 68.52(c)(1)(ii). 10,781. 10,957. 11,181. (per such alien). 8 U.S.C. 1324a(e)(4)(A)(iii)...... IRCA; Unlawful employment 28 CFR Min. 6,469, Max. Min. 6,575, Max. Min. 6,709, Max. of aliens, subsequent 68.52(c)(1)(iii). 21,563. 21,916. 22,363. order (per such alien). 8 U.S.C. 1324a(e)(5).............. IRCA; Paperwork violation 28 CFR 68.52(c)(5)... Min. 216, Max. 2,156. Min. 220, Max. 2,191 Min. 224, Max. (per relevant individual). 2,236. 8 U.S.C. 1324a, (note)............ IRCA; Violation relating 28 CFR 68.52(c)(6)... Min. 751 Max.1,502... Min. 763, Max. 1,527 Min. 779, Max. to participating 1,558. employer's failure to notify of final nonconfirmation of employee's employment eligibility (per relevant individual). 8 U.S.C. 1324a(g)(2).............. IRCA; Violation/ 28 CFR 68.52(c)(7)... 2,156................ 2,191............... 2,236. prohibition of indemnity bonds (per violation). 8 U.S.C. 1324b(g)(2)(B)(iv)(I).... IRCA; Unfair immigration- 28 CFR Min. 445, Max. 3,563. Min. 452, Max. 3,621 Min. 461, Max. related employment 68.52(d)(1)(viii). 3,695. practices, first order (per individual discriminated against). 8 U.S.C. 1324b(g)(2)(B)(iv)(II)... IRCA; Unfair immigration- 28 CFR Min. 3,563, Max. Min. 3,621, Max. Min. 3,695, Max. related employment 68.52(d)(1)(ix). 8,908. 9,054. 9,239. practices, second order (per individual discriminated against). 8 U.S.C. 1324b(g)(2)(B)(iv)(III).. IRCA; Unfair immigration- 28 CFR 68.52(d)(1)(x) Min. 5,345, Max. Min. 5,432, Max Min. 5,543, related employment 17,816. 18,107. Max.18,477. practices, subsequent order (per individual discriminated against). 8 U.S.C. 1324b(g)(2)(B)(iv)(IV)... IRCA; Unfair immigration- 28 CFR Min. 178, Max. 1,782. Min. 181, Max. 1,811 Min. 185, Max. related employment 68.52(d)(1)(xii). 1,848. practices, unfair documentary practices (per individual discriminated against). 8 U.S.C. 1324c(d)(3)(A)........... IRCA; Document fraud, 28 CFR 68.52(e)(1)(i) Min. 445, Max. 3,563. Min. 452, Max. 3,621 Min. 461, Max. first order--for 3,695. violations described in USC 1324c(a)(1)-(4) (per document). 8 U.S.C. 1324c(d)(3)(B)........... IRCA; Document fraud, 28 CFR Min. 3,563, Max. Min. 3,621, Max. Min. 3,695, Max. subsequent order--for 68.52(e)(1)(iii). 8,908. 9,054. 9,239. violations described in USC 1324c(a)(1)-(4) (per document). 8 U.S.C. 1324c(d)(3)(A)........... IRCA; Document fraud, 28 CFR Min. 376, Max. 3,005. Min. 382, Max. 3,054 Min. 390, Max.3,116. first order--for 68.52(e)(1)(ii). violations described in USC 1324c(a)(5)-(6) (per document). 8 U.S.C. 1324c(d)(3)(B)........... IRCA; Document fraud, 28 CFR Min. 3,005, Max. Min. 3,054, Max. Min. 3,116, Max. subsequent order--for 68.52(e)(1)(iv). 7,512. 7,635. 7,791. violations described in USC 1324c(a)(5)-(6) (per document). -------------------------------------------------------------------------------------------------------------------------------------------------------- FBI -------------------------------------------------------------------------------------------------------------------------------------------------------- 49 U.S.C. 30505(a)................ National Motor Vehicle ..................... 1,591................ 1,617............... 1,650. Title Identification System; Violation (per violation). -------------------------------------------------------------------------------------------------------------------------------------------------------- Office of Justice Programs -------------------------------------------------------------------------------------------------------------------------------------------------------- 34 U.S.C. 10231(d)................ Confidentiality of 28 CFR 20.25......... 27,500............... 27,950.............. 28,520. information; State and Local Criminal History Record Information Systems--Right to Privacy Violation. -------------------------------------------------------------------------------------------------------------------------------------------------------- 1 The figures set forth in this column represent the penalty as last adjusted by Department of Justice regulation on February 3, 2017. 2 All figures set forth in this table are maximum penalties, unless otherwise indicated. 3 Section 3729(a)(1) of Title 31 provides that any person who violates this section is liable to the United States Government for a civil penalty of not less than $5,000 and not more than $10,000, as adjusted by the Federal Civil Penalties Inflation Adjustment Act of 1990, plus 3 times the amount of damages which the Government sustains because of the act of that person. 31 U.S.C. 3729(a)(1) (2015). Section 3729(a)(2) permits the court to reduce the damages under certain circumstances to not less than 2 times the amount of damages which the Government sustains because of the act of that person. Id. section 3729(a)(2). The adjustment made by this regulation is only applicable to the specific statutory penalty amounts stated in subsection (a)(1), which is only one component of the civil penalty imposed under section 3729(a)(1). 4 Section 8706(a)(1) of Title 41 provides that the Federal Government in a civil action may recover from a person that knowingly engages in conduct prohibited by section 8702 of Title 44 a civil penalty equal to twice the amount of each kickback involved in the violation and not more than $10,000 for each occurrence of prohibited conduct. 41 U.S.C. 8706(a)(1) (2015). The adjustment made by this regulation is only applicable to the specific statutory penalty amount stated in subsection (a)(1)(B), which is only one component of the civil penalty imposed under section 8706. 5 Section 216(b) of Title 18 provides that the civil penalty should be no more than $50,000 for each violation or the amount of compensation which the person received or offered for the prohibited conduct, whichever amount is greater. 18 U.S.C. 216(b) (2015). Therefore, the adjustment made by this regulation is only applicable to the specific statutory penalty amount stated in subsection (b), which is only one aspect of the possible civil penalty imposed under section 216(b). 6 Section 2105(b) of Title 41 provides that the Attorney General may bring a civil action in an appropriate district court of the United States against a person that engages in conduct that violates section 2102, 2103, or 2104 of Title 41. 41 U.S.C. 2105(b) (2015). Section 2105(b) further provides that on proof of that conduct by a preponderance of the evidence, an individual is liable to the Federal Government for a civil penalty of not more than $50,000 for each violation plus twice the amount of compensation that the individual received or offered for the prohibited conduct, and an organization is liable to the Federal Government for a civil penalty of not more than $500,000 for each violation plus twice the amount of compensation that the organization received or offered for the prohibited conduct. Id. section 2105(b). The adjustments made by this regulation are only applicable to the specific statutory penalty amounts stated in subsections (b)(1) and (b)(2), which are each only one component of the civil penalties imposed under sections 2105(b)(1) and (b)(2). 7 The Attorney General has authority to bring a civil action when a person has violated or is about to violate a provision under this statute. 42 U.S.C. 5157(b) (2015). The Federal Emergency Management Agency has promulgated regulations regarding this statute and has adjusted the penalty in its regulation. 44 CFR 206.14(d) (2015). The Department of Health and Human Services (HHS) has also promulgated a regulation regarding the penalty under this statute. 42 CFR 38.8 (2015). 8 Section 1956(b)(1) of Title 18 provides that whoever conducts or attempts to conduct a transaction described in subsection (a)(1) or (a)(3), or section 1957, or a transportation, transmission, or transfer described in subsection (a)(2), is liable to the United States for a civil penalty of not more than the greater of the value of the property, funds, or monetary instruments involved in the transaction; or $10,000. 18 U.S.C. 1956(b)(1) (2015). The adjustment made by this regulation is only applicable to the specific statutory penalty amount stated in subsection (b)(1)(B), which is only one aspect of the possible civil penalty imposed under section 1956(b). [[Page 3948]] 9 Section 842(c)(2)(C) of Title 21 provides that in addition to the penalties set forth elsewhere in the subchapter or subchapter II of the chapter, any business that violates paragraph (11) of subsection (a) of the section shall, with respect to the first such violation, be subject to a civil penalty of not more than $250,000, but shall not be subject to criminal penalties under the section, and shall, for any succeeding violation, be subject to a civil fine of not more than $250,000 or double the last previously imposed penalty, whichever is greater. 21 U.S.C. 842(c)(2)(C) (2015). The adjustment made by this regulation regarding the penalty for a succeeding violation is only applicable to the specific statutory penalty amount stated in subsection (c)(2)(C), which is only one aspect of the possible civil penalty for a succeeding violation imposed under section 842(c)(2)(C). 10 Section 856(d)(1) of Title 21 provides that any person who violates subsection (a) of the section shall be subject to a civil penalty of not more than the greater of $250,000; or 2 times the gross receipts, either known or estimated, that were derived from each violation that is attributable to the person. 21 U.S.C. 856(d)(1) (2015). The adjustment made by this regulation is only applicable to the specific statutory penalty amount stated in subsection (d)(1)(A), which is only one aspect of the possible civil penalty imposed under section 856(d)(1). Dated: January 19, 2018. Jefferson B. Sessions III, Attorney General. [FR Doc. 2018-01464 Filed 1-26-18; 8:45 am] BILLING CODE 4410-19-P
![3944 Federal Register / Vol. 83, No. 19 / Monday, January 29, 2018 / Rules and Regulations
(h) Additional Information I. Statutory Process for Implementing Example:
Appendix B of Sikorsky S–330 Model 269D Annual Inflation Adjustments • In 2016, the Program Fraud Civil
Helicopter Basic Handbook of Maintenance Section 701 of the Bipartisan Budget Remedies Act penalty was increased to
Instructions, No. CSP–D–2, dated February 1, $10,781 in accordance with the
1993, and revised October 15, 2014;
Act of 2015, Public Law 114–74 (Nov.
2, 2015) (‘‘BBA’’), 28 U.S.C. 2461 note, adjustment requirements of the BBA.
Appendix B of Sikorsky S–330 Model 269D
Config. ‘‘A’’ Helicopter Basic Handbook of substantially revised the prior • For 2017, where the applicable
Maintenance Instructions, No. CSP–D–9, provisions of the Federal Civil Monetary inflation factor was 1.01636, the existing
dated July 20, 2001, and revised October 15, Penalties Inflation Adjustment Act of penalty of $10,781 was multiplied by
2014; and Sikorsky 269D Helicopter Alert 1990, Public Law 101–410 (the 1.01636 and revised to $10,957
Service Bulletin DB–052, Basic Issue, dated ‘‘Inflation Adjustment Act’’), and (rounded to the nearest dollar).
January 16, 2014, which are not incorporated substituted a different statutory formula • For this final rule in 2018, where
by reference, contain additional information for calculating inflation adjustments on the applicable inflation factor is
about the subject of this AD. For service
information identified in this AD, contact
an annual basis. 1.02041, the existing penalty of $10,957
Sikorsky Aircraft Corporation, Customer In accordance with the provisions of is multiplied by 1.02041 and revised to
Service Engineering, 124 Quarry Road, the BBA, on June 30, 2016 (81 FR $11,181 (rounded to the nearest dollar).
Trumbull, CT 06611; telephone 1–800– 42491), the Department of Justice This rule adjusts for inflation civil
Winged–S or 203–416–4299; email wcs_cust_ published an interim rule to adjust for monetary penalties within the
service_eng.gr-sik@lmco.com. You may inflation the civil monetary penalties jurisdiction of the Department of Justice
review a copy of the service information at assessed or enforced by components of for purposes of the Inflation Adjustment
the FAA, Office of the Regional Counsel, the Department after August 1, 2016, Act, as amended. Other agencies are
Southwest Region, 10101 Hillwood Pkwy, with respect to violations occurring after
Room 6N–321, Fort Worth, TX 76177. responsible for the inflation adjustments
November 2, 2015, the date of of certain other civil monetary penalties
(i) Subject enactment of the BBA. Readers may that the Department’s litigating
Joint Aircraft Service Component (JASC) refer to the Supplementary Information components bring suit to collect. The
Code: 6310, Engine/Transmission Coupling. (also known as the preamble) of the reader should consult the regulations of
Department’s 2016 interim rule for those other agencies for inflation
Issued in Fort Worth, Texas, on January 17, additional background information adjustments to those penalties.
2018. regarding the statutory authority for
Lance T. Gant, adjustments of civil monetary penalty III. Effective Date of Adjusted Civil
Director, Compliance & Airworthiness amounts to take account of inflation and Penalty Amounts
Division, Aircraft Certification Service. the Department’s past implementation Under this rule, the adjusted civil
[FR Doc. 2018–01572 Filed 1–26–18; 8:45 am] of inflation adjustments. penalty amounts are applicable only to
BILLING CODE 4910–13–P The BBA also provides for agencies to civil penalties assessed after January 29,
adjust their civil penalties on January 15 2018, with respect to violations
of each year to account for inflation occurring after November 2, 2015, the
during the preceding year, rounded to date of enactment of the BBA.
DEPARTMENT OF JUSTICE the nearest dollar. Accordingly, on The penalty amounts set forth in the
February 3, 2017 (82 FR 9131), the existing table in 28 CFR 85.5 are
28 CFR Part 85 Department published a final rule to applicable to civil penalties assessed
adjust for inflation the civil monetary after August 1, 2016, and on or before
[Docket No. OAG 159; AG Order No. 4093– penalties assessed or enforced by the effective date of this rule, with
2018] components of the Department after that respect to violations occurring after
date, with respect to violations November 2, 2015. Civil penalties for
Civil Monetary Penalties Inflation occurring after November 2, 2015.
Adjustment violations occurring on or before
II. Inflation Adjustments Made by This November 2, 2015, and assessments
AGENCY: Department of Justice. Rule made on or before August 1, 2016, will
ACTION: Final rule. continue to be subject to the civil
As required, the Department is
monetary penalty amounts set forth in
SUMMARY: The Department of Justice is publishing this final rule to adjust the
the Department’s regulations in 28 CFR
adjusting for inflation the civil monetary civil penalties that were most recently
parts 20, 22, 36, 68, 71, 76, and 85 as
penalties assessed or enforced by adjusted as of February 3, 2017. Under
such regulations were in effect prior to
components of the Department, in the statutory formula, the adjustments
August 1, 2016 (or as set forth by statute
accordance with the provisions of the made by this rule are based on the
if the amount had not yet been adjusted
Bipartisan Budget Act of 2015, for Bureau of Labor Statistics’ Consumer
by regulation prior to August 1, 2016).
penalties assessed after January 29, Price Index for October 2017. The OMB
2018, with respect to violations Memorandum for the Heads of Statutory and Regulatory Analyses
occurring after November 2, 2015. Executive Departments and Agencies
Administrative Procedure Act
M–18–03 (Dec. 15, 2017), https://
DATES: This rule is effective January 29,
www.whitehouse.gov/wp-content/ The BBA provides that, for each
2018. uploads/2017/11/M-18-03.pdf (last annual adjustment made after the initial
FOR FURTHER INFORMATION CONTACT: visited Jan. 1, 2018), instructs that the adjustments of civil penalties in 2016,
sradovich on DSK3GMQ082PROD with RULES
Robert Hinchman, Senior Counsel, applicable inflation factor for this the head of an agency shall adjust the
Office of Legal Policy, U.S. Department adjustment is 1.02041. Accordingly, this civil monetary penalties each year
of Justice, Room 4252 RFK Building, rule adjusts the civil penalty amounts in notwithstanding 5 U.S.C. 553.
950 Pennsylvania Avenue NW, 28 CFR 85.5 by applying this inflation Accordingly, this rule is being issued as
Washington, DC 20530, telephone (202) factor mechanically to each of the civil a final rule without prior notice and
514–8059 (not a toll-free number). penalty amounts listed (rounded to the public comment, and without a delayed
SUPPLEMENTARY INFORMATION: nearest dollar). effective date.
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![3948 Federal Register / Vol. 83, No. 19 / Monday, January 29, 2018 / Rules and Regulations
9 Section 842(c)(2)(C) of Title 21 provides that in addition to the penalties set forth elsewhere in the subchapter or subchapter II of the chapter, any business that
violates paragraph (11) of subsection (a) of the section shall, with respect to the first such violation, be subject to a civil penalty of not more than $250,000, but shall
not be subject to criminal penalties under the section, and shall, for any succeeding violation, be subject to a civil fine of not more than $250,000 or double the last
previously imposed penalty, whichever is greater. 21 U.S.C. 842(c)(2)(C) (2015). The adjustment made by this regulation regarding the penalty for a succeeding viola-
tion is only applicable to the specific statutory penalty amount stated in subsection (c)(2)(C), which is only one aspect of the possible civil penalty for a succeeding
violation imposed under section 842(c)(2)(C).
10 Section 856(d)(1) of Title 21 provides that any person who violates subsection (a) of the section shall be subject to a civil penalty of not more than the greater of
$250,000; or 2 times the gross receipts, either known or estimated, that were derived from each violation that is attributable to the person. 21 U.S.C. 856(d)(1) (2015).
The adjustment made by this regulation is only applicable to the specific statutory penalty amount stated in subsection (d)(1)(A), which is only one aspect of the pos-
sible civil penalty imposed under section 856(d)(1).
Dated: January 19, 2018. borders by demonstrating that its permanent structures, etc.) were added
Jefferson B. Sessions III, program includes, among other things, as additional rates per acre if necessary.
Attorney General. State laws and regulations that govern Over 90% of Kentucky permits were not
[FR Doc. 2018–01464 Filed 1–26–18; 8:45 am] surface coal mining and reclamation part of the VBP.
BILLING CODE 4410–19–P
operations in accordance with the Act 2. Alternative Bonding System: In lieu
and consistent with the Federal of requiring all permittees to submit
regulations. See 30 U.S.C. 1253(a)(1) permit-specific performance bonds
and (7). On the basis of these criteria, covering the full cost of permit-specific
DEPARTMENT OF THE INTERIOR
the Secretary of the Interior reclamation for coal mining operations,
Office of Surface Mining Reclamation conditionally approved the Kentucky we approved a request from Kentucky to
and Enforcement program effective May 18, 1982. You implement an ABS as provided for in 30
can find background information on the CFR 800.11(e). The requirements of
30 CFR Part 917 Kentucky program, including the § 800.11(e) provide that an alternative
Secretary’s findings, the disposition of system to the permit-specific bond
[KY–256–FOR; OSM–2012–0014; S1D1S comments, and conditions of approval requirements could be authorized if the
SS08011000 SX064A000 189S180110; of the Kentucky program in the May 18, following two conditions are met: (1)
S2D2S SS08011000 SX064A000 The ABS would assure sufficient money
1982, Federal Register (47 FR 21404).
18XS501520]
You can also find later actions is available to complete the reclamation
Kentucky Regulatory Program concerning Kentucky’s program and plan for any areas which may be in
program amendments at 30 CFR 917.11, default at any time and (2) the ABS
AGENCY: Office of Surface Mining 917.12, 917.13, 917.15, 917.16, and provides a substantial economic
Reclamation and Enforcement, Interior. 917.17. incentive for the permittee to comply
ACTION: Final rule; approval with B. Background: Kentucky Bonding with all reclamation provisions.
exceptions. Program: The following is a description Kentucky’s ABS created the VBP. We
of the bonding program implemented by announced approval of Kentucky’s ABS
SUMMARY: We, the Office of Surface Kentucky and approved by OSMRE in in the July 18, 1986, Federal Register
Mining Reclamation and Enforcement 1986. Permittees are required to furnish (51 FR 26002).
(OSMRE), are approving, with a performance bond that covers the area a. ABS—Voluntary Bond Pool Fund
exceptions, an amendment to the of land upon which the operator will Membership: Participation in the
Kentucky regulatory program initiate and conduct surface coal mining Kentucky bond pool was voluntary,
(hereinafter, the ‘‘Kentucky program’’) and reclamation operations. The amount limited to qualified participants, and
under the Surface Mining Control and of the bond should be sufficient to required application for membership.
Reclamation Act of 1977 (SMCRA or the assure completion of the reclamation Bond pool members, herein referred to
Act). Kentucky submitted a proposed plan. Kentucky’s program included two as VBP members, were permitted to post
amendment to OSMRE that revises its options to post bond: (1) Post a full-cost a performance bond to cover the costs
bonding regulations to satisfy, in part, bonding (performance bond covering of reclamation under the Kentucky
concerns OSMRE conveyed to the State the entire cost of reclamation); or (2) program that was less than the
pertaining to bonding inadequacies. participate in a voluntary bond pool estimated full cost of reclamation if the
DATES: The effective date is February 28, (VBP) and post a reduced permit- member qualified for participation in
2018. specific performance bond. The VBP, an the bond pool and paid the required fees
FOR FURTHER INFORMATION CONTACT: alternative bonding system (ABS), was to the VBP’s supplemental fund. The
Robert Evans, Lexington Field Office limited to qualified applicants and VBP fund would then be used to
Director. Telephone: (859) 260–3900. required membership fees and supplement the reduced operator bond
Email: bevans@osmre.gov. production fees that were used to in the event of operator default on
supplement the reduced permit-specific reclamation. Acceptance into the VBP
SUPPLEMENTARY INFORMATION:
performance bonds posted for surface was based on the applicant’s financial
I. Background on the Kentucky Program
mining operations. Generally, the standing and reclamation compliance
II. Description of the Amendment
III. OSMRE’s Findings second option was used by smaller record.
IV. Summary and Disposition of Comments operators that would otherwise have Applicants for membership in the
V. OSMRE’s Decision difficulty posting a full-cost bond due to VBP qualified for an ‘‘A,’’ ‘‘B,’’ or ‘‘C’’
VI. Procedural Determinations limited financial resources. rating, based on length of time the
1. Permit-Specific Bonds for Non-VBP applicant had held a permit under the
I. Background on the Kentucky Members: If an applicant/permittee same permittee name and the type of
sradovich on DSK3GMQ082PROD with RULES
Program elected not to participate or did not compliance rating, ‘‘excellent’’ or
A. Background: Kentucky Regulatory qualify to become a member of the VBP, ‘‘acceptable,’’ the permittee had
Program: Section 503(a) of the Act the permittee was required to submit an exhibited. The rating method also
permits a State to assume primacy for adequate ‘‘full-cost’’ bond using a basic considered such things as number and
the regulation of surface coal mining bond rate of $2500/acre to which several seriousness of violations for which the
and reclamation operations on non- site factors (difficulty of mining, applicant had been cited, applicant’s
Federal and non-Indian lands within its geologic/hydrologic concerns, abatement of violations, timely payment
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Document Created: 2018-01-27 00:57:26
Document Modified: 2018-01-27 00:57:26
| 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 | This rule is effective January 29, 2018. | |
| Contact | Robert Hinchman, Senior Counsel, Office of Legal Policy, U.S. Department of Justice, Room 4252 RFK Building, 950 Pennsylvania Avenue NW, Washington, DC 20530, telephone (202) 514-8059 (not a toll-free number). | |
| FR Citation | 83 FR 3944 | |
| CFR Associated | Administrative Practice and Procedure and Penalties |
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