Federal Civil Penalties Adjustment Act Amendments, 40523-40525 [2016-14592]

Download as PDF Federal Register / Vol. 81, No. 120 / Wednesday, June 22, 2016 / Rules and Regulations environment. This rule involves the establishment of a safety zone and is therefore categorically excluded from further review under paragraph 34(g) of Figure 2–1 of the Commandant Instruction. An environmental analysis checklist supporting this determination and a Categorical Exclusion Determination are available in the docket where indicated under ADDRESSES. We seek any comments or information that may lead to the discovery of a significant environmental impact from this rule. G. Protest Activities The Coast Guard respects the First Amendment rights of protesters. Protesters are asked to contact the person listed in the FOR FURTHER INFORMATION CONTACT section to coordinate protest activities so that your message can be received without jeopardizing the safety or security of people, places, or vessels. H. Taking of Private Property This rule will not cause a taking of private property or otherwise have taking implications under E.O. 12630, Governmental Actions and Interference with Constitutionally Protected Property Rights. I. Civil Justice Reform This rule meets applicable standards in sections 3(a) and 3(b)(2) of E.O. 12988, Civil Justice Reform, to minimize litigation, eliminate ambiguity, and reduce burden. J. Protection of Children We have analyzed this rule under E.O. 13045, Protection of Children from Environmental Health Risks and Safety Risks. This rule is not an economically significant rule and does not create an environmental risk to health or risk to safety that may disproportionately affect children. K. Energy Effects This action is not a ‘‘significant energy action’’ under E.O. 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use. sradovich on DSK3TPTVN1PROD with RULES List of Subjects in 33 CFR Part 165 Harbors, Marine safety, Navigation (water), Reporting and record keeping requirements, Security measures, Waterways. For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 165 as follows: VerDate Sep<11>2014 16:06 Jun 21, 2016 Jkt 238001 PART 165—REGULATED NAVIGATION AREAS AND LIMITED ACCESS AREAS 1. The authority citation for part 165 continues to read as follows: ■ Authority: 33 U.S.C. 1231; 50 U.S.C. 191; 33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5; Department of Homeland Security Delegation No. 0170.1. 2. Add § 165.T09–0460 to read as follows: ■ 40523 Dated: June 14, 2016. Scott B. Lemasters, Captain, U.S. Coast Guard, Captain of the Port Detroit. [FR Doc. 2016–14817 Filed 6–21–16; 8:45 am] BILLING CODE 9110–04–P DEPARTMENT OF VETERANS AFFAIRS 38 CFR Parts 36 and 42 § 165.T09–0460 Safety Zone; Detroit River Days Air Show, Detroit River, Detroit, MI. RIN 2900–AP78 (a) Location. The following area is a temporary safety zone: All U.S. waters of the Detroit River, Detroit, MI from a point on shore in Milliken State Park at 42°19.87′ N., 083°01.65′ W., proceeding South-Southeast approximately 450 yards to a point mid-river on the international boundary at 42°19.67′ N., 083°01.57′ N., then proceeding approximately 1.3 miles WestSouthwest along the international boundary to a point mid-river at 42°19.28′ N., 083°03.03′ W., and then proceeding to a point on shore immediately West of the Joe Lewis arena at 42°19.45′ N., 083°03.17′ N., and then following the U.S. bank of the Detroit River upstream to the point of origin (NAD 83). (b) Enforcement periods. The safety zone described in paragraph (a) of this section will be enforced from 12:30 p.m. until 6:30 p.m. on June 24, 25, and 26, 2016. (c) Regulations. (1) In accordance with the general regulations in § 165.23, entry into, transiting, or anchoring within this safety zone is prohibited unless authorized by the Captain of the Port Detroit (COTP) or his on-scene representative. (2) The safety zone is closed to all vessel traffic, except as may be permitted by the COTP or his on-scene representative on a case-by-case basis. (3) The ‘‘on-scene representative’’ of the COTP is any Coast Guard commissioned, warrant or petty officer or a Federal, State, or local law enforcement officer designated by or assisting the COTP to act on his behalf. (4) Vessel operators must contact the COTP or his on-scene representative to obtain permission to enter or operate within the safety zone. The Captain of the Port Detroit or his on-scene representative may be contacted via VHF Channel 16 or at 313–568–9560. Vessel operators given permission to enter or operate in the safety zone must comply with all directions given to them by the COTP or his on-scene representative. Federal Civil Penalties Adjustment Act Amendments PO 00000 Frm 00047 Fmt 4700 Sfmt 4700 Department of Veterans Affairs. Interim final rule. AGENCY: ACTION: The Federal Civil Monetary Penalties Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, sets forth a formula increasing the maximum statutory amounts for civil monetary penalties and requires federal agencies to give notice of the new maximum amounts by regulation. Accordingly, this document gives notice that the Department of Veterans Affairs (VA) is increasing maximum civil monetary penalties from $10,000 to $21,563 for false loan guaranty certifications and from $5,500 to $10,781 for fraudulent claims or fraudulent statements in any VA program. DATES: Effective Date: This interim final rule is effective June 22, 2016. Comment Date: Comments must be received on or before August 22, 2016. ADDRESSES: Written comments may be submitted through www.Regulations.gov; by mail or handdelivery to Director, Regulation Policy and Management (02REG), Department of Veterans Affairs, 810 Vermont Ave. NW., Room 1068, Washington, DC 20420; or by fax to (202) 273–9026. Comments should indicate that they are submitted in response to ‘‘RIN 2900– AP78, Federal Civil Penalties Adjustment Act Amendments.’’ Copies of comments received will be available for public inspection in the Office of Regulation Policy and Management, Room 1068, between the hours of 8:00 a.m. and 4:30 p.m., Monday through Friday (except holidays). Please call (202) 461–4902 (this is not a toll-free number) for an appointment. In addition, during the comment period, comments may be viewed online through the Federal Docket Management System (FDMS) at www.Regulations.gov. FOR FURTHER INFORMATION CONTACT: Bill Russo, Director, Office of Regulations SUMMARY: E:\FR\FM\22JNR1.SGM 22JNR1 40524 Federal Register / Vol. 81, No. 120 / Wednesday, June 22, 2016 / Rules and Regulations sradovich on DSK3TPTVN1PROD with RULES Management, Department of Veterans Affairs, 810 Vermont Avenue NW., Washington, DC 20420, (202) 386–6406. SUPPLEMENTARY INFORMATION: On November 2, 2015, the President signed into law the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 Act) (Sec. 701 of Pub. L. 114–74), which amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (the Inflation Adjustment Act) (Pub. L. 101–410), to improve the effectiveness of civil monetary penalties and to maintain their deterrent effect. The 2015 Act requires agencies to: (1) Adjust the level of civil monetary penalties with an initial ‘‘catch-up’’ adjustment through an interim final rulemaking (IFR); and (2) make subsequent annual adjustments for inflation. Catch-up adjustments are to be 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, and the October 2015 CPI– U. Annual inflation adjustments are to be based on the percent change between the October CPI–U preceding the date of the adjustment, and the prior year’s October CPI–U. The Executive Office of the President Office of Management and Budget (OMB) published guidance on February 24, 2016, advising the heads of federal agencies how to implement the 2015 Act. See https://www.whitehouse.gov/ sites/default/files/omb/memoranda/ 2016/m-16-06.pdf. In the guidance, OMB provided the applicable multipliers that federal agencies should use when calculating their first adjustment. Agencies may not increase penalty levels by more than 150 percent of the corresponding levels in effect on November 2, 2015. Note: The 150 percent limitation is on the amount of the increase; therefore, the adjusted penalty level(s) are up to 250 percent of the level(s) in effect on November 2, 2015. Civil Monetary Penalties in the Home Loan Guaranty Program The Veterans’ Benefits Improvement and Health-Care Authorization Act of 1986 authorized VA to levy civil monetary penalties against lenders that make false certifications in VA’s home loan guaranty program. Public Law 99– 576, sec. 402, Oct. 28, 1986, codified at 38 U.S.C. 3710(g)(4). Any lender that knowingly and willfully makes a false certification related to VA’s credit information and loan processing standards is liable to the United States Government for a civil penalty equal to two times the amount of the Secretary’s VerDate Sep<11>2014 16:06 Jun 21, 2016 Jkt 238001 loss on the loan involved or to another appropriate amount, not to exceed $10,000, whichever is greater. See 38 CFR 36.4340(k). The applicable multiplier for a law enacted in 1986 is 2.15628. Therefore, this rule increases the civil penalty found at 38 CFR 36.4340(k)(1)(i) and 36.4340(k)(3) to the greater of two times the amount of the Secretary’s loss on the loan involved or to another appropriate amount, not to exceed $21,563. Program Fraud Civil Remedies The Program Fraud Civil Remedies Act of 1986 authorized federal agencies to establish civil penalties and assessments against persons who commit fraud in federal programs. See Public Law 99–509, secs. 6101–6104, Oct. 21, 1986. For participants in VA’s programs, a person is subject to a civil penalty (in addition to any other remedy that may be prescribed by law) for making a fraudulent claim or statement, as described in 38 CFR 42.3. . The Program Fraud Civil Remedies Act of 1986 originally established the amount of the civil penalty at $5,000. See Public Law 99–509, secs. 6101– 6104, Oct. 21, 1986. VA increased the amount to $5,500 in 1990, in accordance with the Inflation Adjustment Act. VA has not changed the amount other than when it implemented the adjustment due to the Inflation Adjustment Act. As stated above, OMB has advised that the applicable multiplier for laws enacted in 1986 is 2.15628. Rather than applying the multiplier to $5,500, however, VA is applying the multiplier to the amount originally established in the Program Fraud Civil Remedies Act of 1986, $5,000. The initial adjustment from $5,000 to $5,500 is not to be taken into account. This is because, under the 2015 Act, agencies are to exclude from the catch-up prior inflationary adjustments implemented under the Inflation Adjustment Act. Therefore, as of the effective date of this rule, the amounts found at 38 CFR 42.3(a)(1) and 38 CFR 42.3(b)(1) are amended from $5,500 to $10,781. Updating Authority Section, 38 CFR Part 42 VA is also updating the language to account for the codification of the authority cited by 38 U.S.C. Ch. I, Pt. 41, Refs & Annos. Currently, the language states that the cited authorities are ‘‘. . . to be codified at 31 U.S.C. 3801–3812.’’ The authorities are now codified at 31 U.S.C. 3801–3812. Consequently, VA is removing ‘‘to be codified’’ and replacing it with ‘‘codified’’. PO 00000 Frm 00048 Fmt 4700 Sfmt 4700 Administrative Procedure Act In accordance with 5 U.S.C. 553(b)(B) and (d)(3), the Secretary of Veterans Affairs finds, with good cause, that notice and public procedure thereon are unnecessary. This interim final rule merely calculates the adjustment percentages, specified by the 2015 Act, for codification as a VA regulation. This final rule does not impose any additional responsibilities on any entity and therefore requires no adjustment to any entity’s current operations, policies, or practices. Instead, it simply adjusts the amount of each civil monetary penalty as prescribed by the 2015 Act. Executive Orders 12866 and 13563 Executive Orders 12866 and 13563 direct agencies to assess the costs and benefits of available regulatory alternatives and, when regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, and other advantages; distributive impacts; and equity). Executive Order 13563 (Improving Regulation and Regulatory Review) emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility. Executive Order 12866 (Regulatory Planning and Review) defines a ‘‘significant regulatory action,’’ which requires review by OMB, as ‘‘any regulatory action that is likely to result in a rule that may: (1) Have an annual effect on the economy of $100 million or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities; (2) Create a serious inconsistency or otherwise interfere with an action taken or planned by another agency; (3) Materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or (4) Raise novel legal or policy issues arising out of legal mandates, the President’s priorities, or the principles set forth in this Executive Order.’’ The economic, interagency, budgetary, legal, and policy implications of this regulatory action have been examined, and it has been determined that it is not a significant regulatory action under Executive Order 12866. Unfunded Mandates The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 1532, that E:\FR\FM\22JNR1.SGM 22JNR1 Federal Register / Vol. 81, No. 120 / Wednesday, June 22, 2016 / Rules and Regulations agencies prepare an assessment of anticipated costs and benefits before issuing any rule that may result in expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more (adjusted annually for inflation) in any one year. This interim final rule will have no such effect on State, local, and tribal governments, or on the private sector. Paperwork Reduction Act This interim final rule contains no provisions constituting a collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501– 3521). Regulatory Flexibility Act The Secretary hereby certifies that this final rule will not have a significant economic impact on a substantial number of small entities as they are defined in the Regulatory Flexibility Act, 5 U.S.C. 601–612. Accordingly, no proposed rulemaking was required in connection with the adoption of this final rule. Pursuant to 5 U.S.C. 605(b), this final rule is exempt from the initial and final regulatory flexibility analyses requirements of sections 603 and 604. Catalog of Federal Domestic Assistance The Catalog of Federal Domestic Assistance number and title for the program affected by this document is 64.114, Veterans Housing—Guaranteed and Insured Loans. Signing Authority The Secretary of Veterans Affairs, or designee, approved this document and authorized the undersigned to sign and submit the document to the Office of the Federal Register for publication electronically as an official document of the Department of Veterans Affairs. Robert D. Snyder, Chief of Staff, Department of Veterans Affairs, approved this document on May 31, 2016, for publication. sradovich on DSK3TPTVN1PROD with RULES Dated: June 16, 2016. Jeffrey Martin, Office Program Manager, Office of Regulation Policy & Management, Office of the Secretary, Department of Veterans Affairs. List of Subjects in 38 CFR Part 36 Condominiums, Housing, Individuals with disabilities, Loan programshousing and community development, Loan programs-veterans, Manufactured homes, Mortgage insurance, Reporting and recordkeeping requirements, Veterans. For the reasons set out in the preamble, VA amends 38 CFR parts 36 and 42 as follows: VerDate Sep<11>2014 16:06 Jun 21, 2016 Jkt 238001 PART 36—LOAN GUARANTY 1. The authority citation for part 36 continues to read as follows: ■ Authority: 38 U.S.C. 501 and as otherwise noted. 2. In § 36.4340, amend paragraphs (k)(1)(i) and (k)(3) by removing ‘‘$10,000’’ and adding, in its place, ‘‘$21,563’’ and by revising the authority citation at the end of the section to read as follows: ■ § 36.4340 Underwriting standards, processing procedures, lender responsibility, and lender certification. * * * * * (Authority: 28 U.S.C. 2461; 38 U.S.C. 3710) PART 42—STANDARDS IMPLEMENTING THE PROGRAM FRAUD CIVIL REMEDIES ACT 3. The authority citation for part 42 is revised to read as follows: ■ Authority: Pub. L. 99–509, secs. 6101– 6104, 100 Stat. 1874, codified at 31 U.S.C. 3801–3812. 4. In § 42.3, amend paragraphs (a)(1) and (b)(1) by removing ‘‘$5,500’’ and adding, in its place, ‘‘$10,781’’, and by revising the authority citation at the end of the section, to read as follows: ■ § 42.3 Basis for Civil Penalties and Assessments. * * * * * (Authority: 28 U.S.C. 2461; 31 U.S.C. 3802) [FR Doc. 2016–14592 Filed 6–21–16; 8:45 am] BILLING CODE 8320–01–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA–R09–OAR–2015–0187; FRL–9948–01– Region 9] Limited Disapproval of Air Plan Revisions; Arizona; New Source Review; PM2.5 Environmental Protection Agency (EPA). ACTION: Final rule. AGENCY: The Environmental Protection Agency (EPA) is finalizing a limited disapproval of a revision to the Arizona Department of Environmental Quality (ADEQ) portion of the Arizona State Implementation Plan (SIP) under the Clean Air Act (CAA or Act). This ADEQsubmitted SIP revision primarily was intended to serve as a replacement of ADEQ’s SIP-approved rules for the issuance of New Source Review (NSR) SUMMARY: PO 00000 Frm 00049 Fmt 4700 Sfmt 4700 40525 permits for stationary sources, including but not limited to the rules governing the review and permitting of major sources and major modifications under the Act. This action concerns only the major nonattainment NSR provisions in ADEQ’s submittal as they pertain to the Nogales and West Central Pinal nonattainment areas for particulate matter with a diameter of 2.5 micrometers or less (PM2.5). The EPA previously finalized a limited approval for these PM2.5 nonattainment areas related to certain major nonattainment NSR permitting requirements for PM2.5 under the CAA. We subsequently proposed a limited disapproval for these PM2.5 nonattainment areas to set the stage for remedying certain deficiencies related to these nonattainment NSR permitting requirements for PM2.5, and this action finalizes this limited disapproval. DATES: This rule will be effective on July 22, 2016. ADDRESSES: The EPA has established docket number EPA–R09–OAR–2015– 0187 for this action. Generally, documents in the docket for this action are available electronically at https:// www.regulations.gov or in hard copy at EPA Region IX, 75 Hawthorne Street, San Francisco, California 94105–3901. While all documents in the docket are listed at https://www.regulations.gov, some information may be publicly available only at the hard copy location (e.g., copyrighted material, large maps, multi-volume reports), and some may not be available in either location (e.g., confidential business information (CBI)). To inspect the hard copy materials, please schedule an appointment during normal business hours with the contact listed in the FOR FURTHER INFORMATION CONTACT section. FOR FURTHER INFORMATION CONTACT: Lisa Beckham, EPA Region IX, (415) 972– 3811, beckham.lisa@epa.gov. SUPPLEMENTARY INFORMATION: Throughout this document, ‘‘we,’’ ‘‘us’’ and ‘‘our’’ refer to the EPA. Table of Contents I. Proposed Action II. Public Comments and EPA Responses III. EPA Action IV. Statutory and Executive Order Reviews I. Proposed Action On May 2, 2016, the EPA proposed a limited disapproval of the major nonattainment NSR portion of ADEQ’s NSR SIP submittal for PM2.5 as it pertains to the requirements of CAA section 189(e). See 81 FR 26185. ADEQ’s NSR SIP submittal generally includes requirements for the PM2.5 E:\FR\FM\22JNR1.SGM 22JNR1

Agencies

[Federal Register Volume 81, Number 120 (Wednesday, June 22, 2016)]
[Rules and Regulations]
[Pages 40523-40525]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14592]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Parts 36 and 42

RIN 2900-AP78


Federal Civil Penalties Adjustment Act Amendments

AGENCY: Department of Veterans Affairs.

ACTION: Interim final rule.

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SUMMARY: The Federal Civil Monetary Penalties Act of 1990, as amended 
by the Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015, sets forth a formula increasing the maximum statutory 
amounts for civil monetary penalties and requires federal agencies to 
give notice of the new maximum amounts by regulation. Accordingly, this 
document gives notice that the Department of Veterans Affairs (VA) is 
increasing maximum civil monetary penalties from $10,000 to $21,563 for 
false loan guaranty certifications and from $5,500 to $10,781 for 
fraudulent claims or fraudulent statements in any VA program.

DATES: Effective Date: This interim final rule is effective June 22, 
2016.
    Comment Date: Comments must be received on or before August 22, 
2016.

ADDRESSES: Written comments may be submitted through 
www.Regulations.gov; by mail or hand-delivery to Director, Regulation 
Policy and Management (02REG), Department of Veterans Affairs, 810 
Vermont Ave. NW., Room 1068, Washington, DC 20420; or by fax to (202) 
273-9026. Comments should indicate that they are submitted in response 
to ``RIN 2900-AP78, Federal Civil Penalties Adjustment Act 
Amendments.'' Copies of comments received will be available for public 
inspection in the Office of Regulation Policy and Management, Room 
1068, between the hours of 8:00 a.m. and 4:30 p.m., Monday through 
Friday (except holidays). Please call (202) 461-4902 (this is not a 
toll-free number) for an appointment. In addition, during the comment 
period, comments may be viewed online through the Federal Docket 
Management System (FDMS) at www.Regulations.gov.

FOR FURTHER INFORMATION CONTACT: Bill Russo, Director, Office of 
Regulations

[[Page 40524]]

Management, Department of Veterans Affairs, 810 Vermont Avenue NW., 
Washington, DC 20420, (202) 386-6406.

SUPPLEMENTARY INFORMATION: On November 2, 2015, the President signed 
into law the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (the 2015 Act) (Sec. 701 of Pub. L. 114-74), 
which amended the Federal Civil Penalties Inflation Adjustment Act of 
1990 (the Inflation Adjustment Act) (Pub. L. 101-410), to improve the 
effectiveness of civil monetary penalties and to maintain their 
deterrent effect.
    The 2015 Act requires agencies to: (1) Adjust the level of civil 
monetary penalties with an initial ``catch-up'' adjustment through an 
interim final rulemaking (IFR); and (2) make subsequent annual 
adjustments for inflation. Catch-up adjustments are to be 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, and the October 2015 CPI-U. Annual inflation adjustments 
are to be based on the percent change between the October CPI-U 
preceding the date of the adjustment, and the prior year's October CPI-
U.
    The Executive Office of the President Office of Management and 
Budget (OMB) published guidance on February 24, 2016, advising the 
heads of federal agencies how to implement the 2015 Act. See https://www.whitehouse.gov/sites/default/files/omb/memoranda/2016/m-16-06.pdf. 
In the guidance, OMB provided the applicable multipliers that federal 
agencies should use when calculating their first adjustment. Agencies 
may not increase penalty levels by more than 150 percent of the 
corresponding levels in effect on November 2, 2015. Note: The 150 
percent limitation is on the amount of the increase; therefore, the 
adjusted penalty level(s) are up to 250 percent of the level(s) in 
effect on November 2, 2015.

Civil Monetary Penalties in the Home Loan Guaranty Program

    The Veterans' Benefits Improvement and Health-Care Authorization 
Act of 1986 authorized VA to levy civil monetary penalties against 
lenders that make false certifications in VA's home loan guaranty 
program. Public Law 99-576, sec. 402, Oct. 28, 1986, codified at 38 
U.S.C. 3710(g)(4). Any lender that knowingly and willfully makes a 
false certification related to VA's credit information and loan 
processing standards is liable to the United States Government for a 
civil penalty equal to two times the amount of the Secretary's loss on 
the loan involved or to another appropriate amount, not to exceed 
$10,000, whichever is greater. See 38 CFR 36.4340(k). The applicable 
multiplier for a law enacted in 1986 is 2.15628. Therefore, this rule 
increases the civil penalty found at 38 CFR 36.4340(k)(1)(i) and 
36.4340(k)(3) to the greater of two times the amount of the Secretary's 
loss on the loan involved or to another appropriate amount, not to 
exceed $21,563.

Program Fraud Civil Remedies

    The Program Fraud Civil Remedies Act of 1986 authorized federal 
agencies to establish civil penalties and assessments against persons 
who commit fraud in federal programs. See Public Law 99-509, secs. 
6101-6104, Oct. 21, 1986. For participants in VA's programs, a person 
is subject to a civil penalty (in addition to any other remedy that may 
be prescribed by law) for making a fraudulent claim or statement, as 
described in 38 CFR 42.3. .
    The Program Fraud Civil Remedies Act of 1986 originally established 
the amount of the civil penalty at $5,000. See Public Law 99-509, secs. 
6101-6104, Oct. 21, 1986. VA increased the amount to $5,500 in 1990, in 
accordance with the Inflation Adjustment Act. VA has not changed the 
amount other than when it implemented the adjustment due to the 
Inflation Adjustment Act.
    As stated above, OMB has advised that the applicable multiplier for 
laws enacted in 1986 is 2.15628. Rather than applying the multiplier to 
$5,500, however, VA is applying the multiplier to the amount originally 
established in the Program Fraud Civil Remedies Act of 1986, $5,000. 
The initial adjustment from $5,000 to $5,500 is not to be taken into 
account. This is because, under the 2015 Act, agencies are to exclude 
from the catch-up prior inflationary adjustments implemented under the 
Inflation Adjustment Act. Therefore, as of the effective date of this 
rule, the amounts found at 38 CFR 42.3(a)(1) and 38 CFR 42.3(b)(1) are 
amended from $5,500 to $10,781.

Updating Authority Section, 38 CFR Part 42

    VA is also updating the language to account for the codification of 
the authority cited by 38 U.S.C. Ch. I, Pt. 41, Refs & Annos. 
Currently, the language states that the cited authorities are ``. . . 
to be codified at 31 U.S.C. 3801-3812.'' The authorities are now 
codified at 31 U.S.C. 3801-3812. Consequently, VA is removing ``to be 
codified'' and replacing it with ``codified''.

Administrative Procedure Act

    In accordance with 5 U.S.C. 553(b)(B) and (d)(3), the Secretary of 
Veterans Affairs finds, with good cause, that notice and public 
procedure thereon are unnecessary. This interim final rule merely 
calculates the adjustment percentages, specified by the 2015 Act, for 
codification as a VA regulation.
    This final rule does not impose any additional responsibilities on 
any entity and therefore requires no adjustment to any entity's current 
operations, policies, or practices. Instead, it simply adjusts the 
amount of each civil monetary penalty as prescribed by the 2015 Act.

Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess the 
costs and benefits of available regulatory alternatives and, when 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, and other advantages; distributive impacts; 
and equity). Executive Order 13563 (Improving Regulation and Regulatory 
Review) emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
Executive Order 12866 (Regulatory Planning and Review) defines a 
``significant regulatory action,'' which requires review by OMB, as 
``any regulatory action that is likely to result in a rule that may: 
(1) Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities; (2) Create a serious inconsistency or otherwise interfere 
with an action taken or planned by another agency; (3) Materially alter 
the budgetary impact of entitlements, grants, user fees, or loan 
programs or the rights and obligations of recipients thereof; or (4) 
Raise novel legal or policy issues arising out of legal mandates, the 
President's priorities, or the principles set forth in this Executive 
Order.''
    The economic, interagency, budgetary, legal, and policy 
implications of this regulatory action have been examined, and it has 
been determined that it is not a significant regulatory action under 
Executive Order 12866.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that

[[Page 40525]]

agencies prepare an assessment of anticipated costs and benefits before 
issuing any rule that may result in expenditure by State, local, and 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more (adjusted annually for inflation) in any one year. This 
interim final rule will have no such effect on State, local, and tribal 
governments, or on the private sector.

Paperwork Reduction Act

    This interim final rule contains no provisions constituting a 
collection of information under the Paperwork Reduction Act of 1995 (44 
U.S.C. 3501-3521).

Regulatory Flexibility Act

    The Secretary hereby certifies that this final rule will not have a 
significant economic impact on a substantial number of small entities 
as they are defined in the Regulatory Flexibility Act, 5 U.S.C. 601-
612. Accordingly, no proposed rulemaking was required in connection 
with the adoption of this final rule. Pursuant to 5 U.S.C. 605(b), this 
final rule is exempt from the initial and final regulatory flexibility 
analyses requirements of sections 603 and 604.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance number and title for the 
program affected by this document is 64.114, Veterans Housing--
Guaranteed and Insured Loans.

Signing Authority

    The Secretary of Veterans Affairs, or designee, approved this 
document and authorized the undersigned to sign and submit the document 
to the Office of the Federal Register for publication electronically as 
an official document of the Department of Veterans Affairs. Robert D. 
Snyder, Chief of Staff, Department of Veterans Affairs, approved this 
document on May 31, 2016, for publication.

    Dated: June 16, 2016.
Jeffrey Martin,
Office Program Manager, Office of Regulation Policy & Management, 
Office of the Secretary, Department of Veterans Affairs.

List of Subjects in 38 CFR Part 36

    Condominiums, Housing, Individuals with disabilities, Loan 
programs-housing and community development, Loan programs-veterans, 
Manufactured homes, Mortgage insurance, Reporting and recordkeeping 
requirements, Veterans.

    For the reasons set out in the preamble, VA amends 38 CFR parts 36 
and 42 as follows:

PART 36--LOAN GUARANTY

0
1. The authority citation for part 36 continues to read as follows:

    Authority: 38 U.S.C. 501 and as otherwise noted.


0
2. In Sec.  36.4340, amend paragraphs (k)(1)(i) and (k)(3) by removing 
``$10,000'' and adding, in its place, ``$21,563'' and by revising the 
authority citation at the end of the section to read as follows:


Sec.  36.4340  Underwriting standards, processing procedures, lender 
responsibility, and lender certification.

* * * * *

(Authority: 28 U.S.C. 2461; 38 U.S.C. 3710)

PART 42--STANDARDS IMPLEMENTING THE PROGRAM FRAUD CIVIL REMEDIES 
ACT

0
3. The authority citation for part 42 is revised to read as follows:

    Authority: Pub. L. 99-509, secs. 6101-6104, 100 Stat. 1874, 
codified at 31 U.S.C. 3801-3812.


0
4. In Sec.  42.3, amend paragraphs (a)(1) and (b)(1) by removing 
``$5,500'' and adding, in its place, ``$10,781'', and by revising the 
authority citation at the end of the section, to read as follows:


Sec.  42.3  Basis for Civil Penalties and Assessments.

* * * * *

(Authority: 28 U.S.C. 2461; 31 U.S.C. 3802)


[FR Doc. 2016-14592 Filed 6-21-16; 8:45 am]
 BILLING CODE 8320-01-P
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