Civil Monetary Penalties Inflation Adjustments for Ethics in Government Act Violations, 8131-8133 [2017-00627]
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8131
Rules and Regulations
Federal Register
Vol. 82, No. 14
Tuesday, January 24, 2017
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. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
OFFICE OF GOVERNMENT ETHICS
5 CFR Parts 2634 and 2636
RINs 3209–AA00 and 3209–AA38
Civil Monetary Penalties Inflation
Adjustments for Ethics in Government
Act Violations
Office of Government Ethics.
Final rule.
AGENCY:
ACTION:
The U.S. Office of
Government Ethics (OGE) is issuing this
final rule in accordance with the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015. This rulemaking adopts as final
prior interim regulations making ‘‘catchup’’ inflationary adjustments to each of
the five civil monetary penalties
provided in the Ethics in Government
Act, as reflected in the executive
branchwide financial disclosure and
outside employment/activities
regulations promulgated by OGE. This
rulemaking also makes the 2017 annual
adjustment to the Ethics in Government
Act civil monetary penalties mandated
by the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015.
DATES: Effective date: This final rule is
effective January 24, 2017.
Applicability date: This final rule is
applicable January 15, 2017.
FOR FURTHER INFORMATION CONTACT:
Kimberly L. Sikora Panza, Associate
Counsel, General Counsel and Legal
Policy Division, Office of Government
Ethics, Telephone: 202–482–9300; TTY:
800–877–8339; FAX: 202–482–9237.
SUPPLEMENTARY INFORMATION:
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SUMMARY:
I. Background
‘‘Catch-up’’ Adjustment to Ethics in
Government Act Civil Monetary
Penalties
In November 2015, Congress passed
the Federal Civil Penalties Inflation
VerDate Sep<11>2014
17:47 Jan 23, 2017
Jkt 241001
Adjustment Act Improvements Act of
2015 (Sec. 701 of Pub. L. 114–74) (the
2015 Act), which further amended the
Federal Civil Penalties Inflation
Adjustment Act of 1990 (Pub. L. 101–
410). The 2015 Act required Federal
agencies to make inflationary
adjustments to the civil monetary
penalties (CMPs) within their
jurisdiction with an initial ‘‘catch-up’’
adjustment through an interim final rule
effective no later than August 1, 2016.
The 2015 Act further mandates that
Federal agencies make subsequent
annual inflationary adjustments of their
CMPs, to be effective no later than
January 15 of each year.
In compliance with the 2015 Act and
guidance issued by the Office of
Management and Budget (OMB), on
June 28, 2016, the U.S. Office of
Government Ethics (OGE) published in
the Federal Register an interim final
rule with request for comments, 81 FR
41787 (June 28, 2016). The interim final
rule, which became effective on August
1, 2016, made inflationary adjustments
to the five CMPs provided in the Ethics
in Government Act of 1978 as amended,
5 U.S.C. appendix (the Ethics Act).1 The
Ethics Act provides for penalties that
can be assessed by an appropriate
United States district court, based upon
a civil action brought by the Department
of Justice, for the following five types of
violations: Knowing and willful failure
to file, report required information on,
or falsification of a public financial
disclosure report; knowing and willful
breach of a qualified trust by trustees
and interested parties; negligent breach
of a qualified trust by trustees and
interested parties; misuse of a public
report; and violation of outside
employment/activities provisions. See
sections 102(f)(6)(C)(i) and (ii), 104(a),
105(c)(2) and 504(a) of the Ethics Act, 5
U.S.C. appendix, 102(f)(6)(C)(i) and (ii),
104(a), 105(c)(2) and 504(a). These
penalties are reflected in 5 CFR
2634.701(b), 2634.702(a) and (b), and
2634.703 of OGE’s executive
1 OGE has previously determined, after
consultation with the Department of Justice, that
the $200 late filing fee for public financial
disclosure reports that are more than 30 days
overdue (see section 104(d) of the Ethics Act, 5
U.S.C. appendix, 104(d), and 5 CFR 2634.704 of
OGE’s regulations thereunder) is not a CMP as
defined under the Federal Civil Penalties Inflation
Adjustment Act, as amended. Therefore, that fee is
not being adjusted in this rulemaking (nor was it
adjusted by OGE in previous CMP rulemakings),
and will remain at its current amount of $200.
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Frm 00001
Fmt 4700
Sfmt 4700
branchwide financial disclosure
regulation and 5 CFR 2636.104(a) of
OGE’s executive branchwide covered
noncareer employee outside
employment/activities regulation.
As explained in the preamble to the
interim final rule, the increased civil
monetary penalty amounts calculated in
OGE’s ‘‘catch-up’’ adjustment applied
only to civil penalties assessed after
August 1, 2016 whose associated
violations occurred after November 2,
2015, the date of enactment of the 2015
Act. For the sake of clarity, OGE’s
interim final rule stated the original,
previously-adjusted and newly-adjusted
Ethics Act CMP amounts. OGE received
no comments on the interim final rule,
and therefore is adopting it as final in
this rulemaking.
Annual Inflationary Adjustment to the
Ethics in Government Act Civil
Monetary Penalties
Beginning in 2017, the 2015 Act
requires Federal agencies to make
annual inflationary adjustments to their
CMPs. The annual adjustments are
based on the percent change between
the Consumer Price Index for all Urban
Consumers (CPI–U) for the month of
October preceding the date of the
adjustment, and the prior year’s October
CPI–U. Pursuant to OMB guidance, the
cost-of-living adjustment multiplier for
2017, based on the CPI–U for October
2016, not seasonally adjusted, is
1.01636. To calculate the 2017 annual
adjustment, agencies must multiply the
most recent penalty by the 1.01636
multiplier, and round to the nearest
dollar.
Applying the formula established by
the 2015 Act and OMB guidance, OGE
is amending the Ethics Act CMPs
through this rulemaking to:
(1) Increase the three penalties
reflected in 5 CFR 2634.702(a), 5 CFR
2634.703, and 5 CFR 2636.104(a)—
which were previously adjusted to a
maximum of $18,936—to a maximum of
$19,246;
(2) Increase the penalty reflected in 5
CFR 2634.702(b)—which was
previously adjusted to a maximum of
$9,468—to a maximum of $9,623; and
(3) Increase the penalty reflected in 5
CFR 2634.701(b)—which was
previously adjusted to a maximum of
$56,916—to a maximum of $57,847.
Consistent with the implementation of
the ‘‘catch-up’’ penalty adjustments,
these adjusted penalty amounts will
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8132
Federal Register / Vol. 82, No. 14 / Tuesday, January 24, 2017 / Rules and Regulations
apply only to penalties assessed after
January 15, 2017 (the applicability date
of this final rule) whose associated
violations occurred after November 2,
2015.
OGE will continue to make future
annual inflationary adjustments to the
Ethics Act CMPs in accordance with the
statutory formula set forth in the 2015
Act.
II. Matters of Regulatory Procedure
Administrative Procedure Act
Pursuant to 5 U.S.C. 553(b), as
Director of the Office of Government
Ethics, I find that good cause exists for
waiving the general notice of proposed
rulemaking and public comment
procedures as to these technical
amendments. The notice and comment
procedures are being waived because
these amendments, which concern
matters of agency organization,
procedure and practice, are being
adopted in accordance with statutorily
mandated inflation adjustment
procedures of the 2015 Act, which
specifies that agencies shall adjust civil
monetary penalties notwithstanding
Section 553 of the Administrative
Procedure Act. It is also in the public
interest that the adjusted rates for civil
monetary penalties under the Ethics in
Government Act become effective as
soon as possible in order to maintain
their deterrent effect.
Executive Order 13563 and Executive
Order 12866
Executive Orders 13563 and 12866
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select the regulatory
approaches that maximize net benefits
(including economic, environmental,
public health and safety effects,
distributive impacts, and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. The Office of Management
and Budget has determined that
rulemakings such as this implementing
annual inflationary adjustments under
the 2015 Act are not significant
regulatory actions under Executive
Order 12866.
Executive Order 12988
As Director of the Office of
Government Ethics, I have reviewed this
rule in light of section 3 of Executive
Order 12988, Civil Justice Reform, and
certify that it meets the applicable
standards provided therein.
List of Subjects
5 CFR Part 2634
Certificates of divestiture, Conflict of
interests, Government employees,
Penalties, Reporting and recordkeeping
requirements, Trusts and trustees.
Regulatory Flexibility Act
5 CFR Part 2636
As the Director of the Office of
Government Ethics, I certify under the
Regulatory Flexibility Act (5 U.S.C.
chapter 6) that this final rule would not
have a significant economic impact on
a substantial number of small entities
because it primarily affects current
Federal executive branch employees.
Conflict of interests, Government
employees, Penalties.
Paperwork Reduction Act
The Paperwork Reduction Act (44
U.S.C. chapter 35) does not apply
because this regulation does not contain
information collection requirements that
require approval of the Office of
Management and Budget.
sradovich on DSK3GMQ082PROD with RULES
Jkt 241001
PART 2634—EXECUTIVE BRANCH
FINANCIAL DISCLOSURE, QUALIFIED
TRUSTS, AND CERTIFICATES OF
DIVESTITURE
§ 2634.701
reports.
Failure to file or falsifying
*
*
*
*
*
(b) Civil action. The Attorney General
may bring a civil action in any
appropriate United States district court
against any individual who knowingly
and willfully falsifies or who knowingly
and willfully fails to file or report any
information required by filers of public
reports under subpart B of this part. The
court in which the action is brought
may assess against the individual a civil
monetary penalty in any amount, not to
exceed the amounts set forth below, as
provided by section 104(a) of the Act, as
amended, and as adjusted in accordance
with the inflation adjustment
procedures prescribed in the Federal
Civil Penalties Inflation Adjustment Act
of 1990, as amended:
Date of violation
Violation occurring between Sept.
14, 2007 and Nov. 2, 2015 .......
Violation occurring after Nov. 2,
2015 ..........................................
1. The authority citation for part 2634
continues to read as follows:
Penalty
$50,000
57,847
*
*
*
*
*
3. Section 2634.702 is revised to read
as follows:
■
§ 2634.702 Breaches by trust fiduciaries
and interested parties.
(a) The Attorney General may bring a
civil action in any appropriate United
States district court against any
individual who knowingly and willfully
violates the provisions of
§ 2634.408(d)(1) or (e)(1). The court in
which the action is brought may assess
against the individual a civil monetary
penalty in any amount, not to exceed
the amounts set forth below, as
provided by section 102(f)(6)(C)(i) of the
Act and as adjusted in accordance with
the inflation adjustment procedures
prescribed in the Federal Civil Penalties
Inflation Adjustment Act of 1990, as
amended:
Penalty
■
For purposes of the Unfunded
Mandates Reform Act of 1995 (2 U.S.C.
chapter 5, subchapter II), this rule
would not significantly or uniquely
affect small governments and will not
result in increased expenditures by
State, local, and tribal governments, in
the aggregate, or by the private sector, of
$100 million or more (as adjusted for
inflation) in any one year.
17:47 Jan 23, 2017
Accordingly, for the reasons set forth
in the preamble, the U.S. Office of
Government Ethics is adopting the
interim final rule published at 81 FR
41787 (June 28, 2016) as a final rule
with the following changes:
2. Section 2634.701 is amended by
revising paragraph (b) to read as follows:
■
Date of violation
Unfunded Mandates Reform Act
VerDate Sep<11>2014
Dated: January 9, 2017.
Walter M. Shaub, Jr.,
Director, U.S. Office of Government Ethics.
FR 15159, 3 CFR, 1989 Comp., p. 215, as
modified by E.O. 12731, 55 FR 42547, 3 CFR,
1990 Comp., p. 306.
Authority: 5 U.S.C. App. (Ethics in
Government Act of 1978); 26 U.S.C. 1043;
Pub. L. 101–410, 104 Stat. 890, 28 U.S.C.
2461 note (Federal Civil Penalties Inflation
Adjustment Act of 1990), as amended by Sec.
31001, Pub. L. 104–134, 110 Stat. 1321 (Debt
Collection Improvement Act of 1996) and
Sec. 701, Pub. L. 114–74 (Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015); E.O. 12674, 54
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
Violation occurring between Sept.
29, 1999 and Nov. 2, 2015 .......
Violation occurring after Nov. 2,
2015 ..........................................
$11,000
19,246
(b) The Attorney General may bring a
civil action in any appropriate United
States district court against any
individual who negligently violates the
provisions of § 2634.408(d)(1) or (e)(1).
The court in which the action is brought
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Federal Register / Vol. 82, No. 14 / Tuesday, January 24, 2017 / Rules and Regulations
sradovich on DSK3GMQ082PROD with RULES
may assess against the individual a civil
monetary penalty in any amount, not to
exceed the amounts set forth below, as
provided by section 102(f)(6)(C)(ii) of
the Act and as adjusted in accordance
with the inflation adjustment
procedures of the Federal Civil Penalties
Inflation Adjustment Act of 1990, as
amended:
§ 2636.104
action.
Civil, disciplinary and other
(a) Civil action. Except when the
employee engages in conduct in good
faith reliance upon an advisory opinion
issued under § 2636.103, an employee
who engages in any conduct in violation
of the prohibitions, limitations and
restrictions contained in this part may
be subject to civil action under 5 U.S.C.
app. 504(a) and a civil monetary penalty
of not more than the amounts set forth
below, as adjusted in accordance with
the inflation adjustment procedures
prescribed in the Federal Civil Penalties
Inflation Adjustment Act of 1990, as
amended, or the amount of the
compensation the individual received
for the prohibited conduct, whichever is
greater.
8133
to $10,957 for each false claim or
statement.
This final rule is effective on
January 24, 2017.
DATES:
Please refer to Docket ID
NRC–2016–0165 when contacting the
NRC about the availability of
information for this action. You may
obtain publicly-available information
Date of violation
Penalty
related to this action by any of the
following methods:
Violation occurring between Sept.
29, 1999 and Nov. 2, 2015 .......
$5,500
• Federal Rulemaking Web site: Go to
Violation occurring after Nov. 2,
https://www.regulations.gov and search
2015 ..........................................
9,623
for Docket ID NRC–2016–0165. Address
questions about NRC dockets to Carol
■ 4. Section 2634.703 is revised to read
Gallagher; telephone: 301–415–3463;
as follows:
email: Carol.Gallagher@nrc.gov. For
technical questions, contact the
§ 2634.703 Misuse of public reports.
individual listed in the FOR FURTHER
(a) The Attorney General may bring a
INFORMATION CONTACT section of this
Date of violation
Penalty
civil action against any person who
document.
obtains or uses a report filed under this
Violation occurring between Sept.
• NRC’s Agencywide Documents
part for any purpose prohibited by
29, 1999 and Nov. 2, 2015 .......
$11,000
Access and Management System
section 105(c)(1) of the Act, as
Violation occurring after Nov. 2,
incorporated in § 2634.603(f). The court
2015 ..........................................
19,246 (ADAMS): You may obtain publiclyavailable documents online in the
in which the action is brought may
ADAMS Public Documents collection at
assess against the person a civil
*
*
*
*
*
https://www.nrc.gov/reading-rm/
monetary penalty in any amount, not to [FR Doc. 2017–00627 Filed 1–23–17; 8:45 am]
adams.html. To begin the search, select
exceed the amounts set forth below, as
BILLING CODE 6345–03–P
‘‘ADAMS Public Documents’’ and then
provided by section 105(c)(2) of the Act
select ‘‘Begin Web-based ADAMS
and as adjusted in accordance with the
Search.’’ For problems with ADAMS,
inflation adjustment procedures
NUCLEAR REGULATORY
please contact the NRC’s Public
prescribed in the Federal Civil Penalties COMMISSION
Document Room (PDR) reference staff at
Inflation Adjustment Act of 1990, as
1–800–397–4209, 301–415–4737, or by
amended:
10 CFR Parts 2 and 13
email to pdr.resource@nrc.gov. The
[NRC–2016–0165]
ADAMS accession number for each
Date of violation
Penalty
document referenced (if it is available in
RIN 3150–AJ82
Violation occurring between Sept.
ADAMS) is provided the first time that
29, 1999 and Nov. 2, 2015 .......
$11,000 Adjustment of Civil Penalties for
it is mentioned in the SUPPLEMENTARY
Violation occurring after Nov. 2,
Inflation for FY 2017
INFORMATION section.
2015 ..........................................
19,246
• NRC’s PDR: You may examine and
AGENCY: Nuclear Regulatory
purchase copies of public documents at
(b) This remedy shall be in addition
Commission.
the NRC’s PDR, Room O1–F21, One
to any other remedy available under
ACTION: Final rule.
White Flint North, 11555 Rockville
statutory or common law.
SUMMARY: The U.S. Nuclear Regulatory
Pike, Rockville, Maryland 20852.
PART 2636—LIMITATIONS ON
Commission (NRC) is amending its
OUTSIDE EARNED INCOME,
regulations to adjust the maximum civil FOR FURTHER INFORMATION CONTACT: Eric
EMPLOYMENT AND AFFILIATIONS
monetary penalties (CMPs) it can assess Michel, Office of the General Counsel,
telephone: 301–287–3704, email:
FOR CERTAIN NONCAREER
under statutes enforced by the agency.
Eric.Michel2@nrc.gov, U.S. Nuclear
EMPLOYEES
These changes are mandated by the
Regulatory Commission, Washington,
Federal Civil Penalties Inflation
DC 20555–0001.
■ 5. The authority citation for part 2636
Adjustment Act of 1990 (FCPIAA), as
continues to read as follows:
amended by the Federal Civil Penalties
SUPPLEMENTARY INFORMATION:
Authority: 5 U.S.C. App. (Ethics in
Inflation Adjustment Act Improvements
Table of Contents
Government Act of 1978); Pub. L. 101–410,
Act of 2015 (2015 Improvements Act).
104 Stat. 890, 28 U.S.C. 2461 note (Federal
The NRC is amending its regulations to
I. Background
Civil Penalties Inflation Adjustment Act of
adjust the maximum CMP for a violation
1990), as amended by Sec. 31001, Pub. L.
II. Discussion
of the Atomic Energy Act of 1954, as
104–134, 110 Stat. 1321 (Debt Collection
III. Rulemaking Procedure
Improvement Act of 1996) and Sec. 701, Pub. amended (AEA), or any regulation or
IV. Section-by-Section Analysis
order issued under the AEA from
L. 114–74 (Federal Civil Penalties Inflation
V. Regulatory Analysis
Adjustment Act Improvements Act of 2015);
$280,469 to $285,057 per violation, per
VI. Regulatory Flexibility Act
E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., day. Additionally, the NRC is amending VII. Backfitting and Issue Finality
p. 215, as modified by E.O. 12731, 55 FR
provisions concerning program fraud
VIII. Plain Writing
42547, 3 CFR, 1990 Comp., p. 306.
civil penalties by adjusting the
IX. National Environmental Policy Act
■ 6. Section 2636.104 is amended by
maximum CMP under the Program
X. Paperwork Reduction Act
revising paragraph (a) to read as follows: Fraud Civil Remedies Act from $10,781
XI. Congressional Review Act
VerDate Sep<11>2014
17:47 Jan 23, 2017
Jkt 241001
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Fmt 4700
Sfmt 4700
ADDRESSES:
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Agencies
[Federal Register Volume 82, Number 14 (Tuesday, January 24, 2017)]
[Rules and Regulations]
[Pages 8131-8133]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00627]
========================================================================
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.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 82, No. 14 / Tuesday, January 24, 2017 /
Rules and Regulations
[[Page 8131]]
=======================================================================
-----------------------------------------------------------------------
OFFICE OF GOVERNMENT ETHICS
5 CFR Parts 2634 and 2636
RINs 3209-AA00 and 3209-AA38
Civil Monetary Penalties Inflation Adjustments for Ethics in
Government Act Violations
AGENCY: Office of Government Ethics.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The U.S. Office of Government Ethics (OGE) is issuing this
final rule in accordance with the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015. This rulemaking adopts as
final prior interim regulations making ``catch-up'' inflationary
adjustments to each of the five civil monetary penalties provided in
the Ethics in Government Act, as reflected in the executive branchwide
financial disclosure and outside employment/activities regulations
promulgated by OGE. This rulemaking also makes the 2017 annual
adjustment to the Ethics in Government Act civil monetary penalties
mandated by the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015.
DATES: Effective date: This final rule is effective January 24, 2017.
Applicability date: This final rule is applicable January 15, 2017.
FOR FURTHER INFORMATION CONTACT: Kimberly L. Sikora Panza, Associate
Counsel, General Counsel and Legal Policy Division, Office of
Government Ethics, Telephone: 202-482-9300; TTY: 800-877-8339; FAX:
202-482-9237.
SUPPLEMENTARY INFORMATION:
I. Background
``Catch-up'' Adjustment to Ethics in Government Act Civil Monetary
Penalties
In November 2015, Congress passed the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015 (Sec. 701 of Pub. L.
114-74) (the 2015 Act), which further amended the Federal Civil
Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410). The 2015
Act required Federal agencies to make inflationary adjustments to the
civil monetary penalties (CMPs) within their jurisdiction with an
initial ``catch-up'' adjustment through an interim final rule effective
no later than August 1, 2016. The 2015 Act further mandates that
Federal agencies make subsequent annual inflationary adjustments of
their CMPs, to be effective no later than January 15 of each year.
In compliance with the 2015 Act and guidance issued by the Office
of Management and Budget (OMB), on June 28, 2016, the U.S. Office of
Government Ethics (OGE) published in the Federal Register an interim
final rule with request for comments, 81 FR 41787 (June 28, 2016). The
interim final rule, which became effective on August 1, 2016, made
inflationary adjustments to the five CMPs provided in the Ethics in
Government Act of 1978 as amended, 5 U.S.C. appendix (the Ethics
Act).\1\ The Ethics Act provides for penalties that can be assessed by
an appropriate United States district court, based upon a civil action
brought by the Department of Justice, for the following five types of
violations: Knowing and willful failure to file, report required
information on, or falsification of a public financial disclosure
report; knowing and willful breach of a qualified trust by trustees and
interested parties; negligent breach of a qualified trust by trustees
and interested parties; misuse of a public report; and violation of
outside employment/activities provisions. See sections 102(f)(6)(C)(i)
and (ii), 104(a), 105(c)(2) and 504(a) of the Ethics Act, 5 U.S.C.
appendix, 102(f)(6)(C)(i) and (ii), 104(a), 105(c)(2) and 504(a). These
penalties are reflected in 5 CFR 2634.701(b), 2634.702(a) and (b), and
2634.703 of OGE's executive branchwide financial disclosure regulation
and 5 CFR 2636.104(a) of OGE's executive branchwide covered noncareer
employee outside employment/activities regulation.
---------------------------------------------------------------------------
\1\ OGE has previously determined, after consultation with the
Department of Justice, that the $200 late filing fee for public
financial disclosure reports that are more than 30 days overdue (see
section 104(d) of the Ethics Act, 5 U.S.C. appendix, 104(d), and 5
CFR 2634.704 of OGE's regulations thereunder) is not a CMP as
defined under the Federal Civil Penalties Inflation Adjustment Act,
as amended. Therefore, that fee is not being adjusted in this
rulemaking (nor was it adjusted by OGE in previous CMP rulemakings),
and will remain at its current amount of $200.
---------------------------------------------------------------------------
As explained in the preamble to the interim final rule, the
increased civil monetary penalty amounts calculated in OGE's ``catch-
up'' adjustment applied only to civil penalties assessed after August
1, 2016 whose associated violations occurred after November 2, 2015,
the date of enactment of the 2015 Act. For the sake of clarity, OGE's
interim final rule stated the original, previously-adjusted and newly-
adjusted Ethics Act CMP amounts. OGE received no comments on the
interim final rule, and therefore is adopting it as final in this
rulemaking.
Annual Inflationary Adjustment to the Ethics in Government Act Civil
Monetary Penalties
Beginning in 2017, the 2015 Act requires Federal agencies to make
annual inflationary adjustments to their CMPs. The annual adjustments
are based on the percent change between the Consumer Price Index for
all Urban Consumers (CPI-U) for the month of October preceding the date
of the adjustment, and the prior year's October CPI-U. Pursuant to OMB
guidance, the cost-of-living adjustment multiplier for 2017, based on
the CPI-U for October 2016, not seasonally adjusted, is 1.01636. To
calculate the 2017 annual adjustment, agencies must multiply the most
recent penalty by the 1.01636 multiplier, and round to the nearest
dollar.
Applying the formula established by the 2015 Act and OMB guidance,
OGE is amending the Ethics Act CMPs through this rulemaking to:
(1) Increase the three penalties reflected in 5 CFR 2634.702(a), 5
CFR 2634.703, and 5 CFR 2636.104(a)--which were previously adjusted to
a maximum of $18,936--to a maximum of $19,246;
(2) Increase the penalty reflected in 5 CFR 2634.702(b)--which was
previously adjusted to a maximum of $9,468--to a maximum of $9,623; and
(3) Increase the penalty reflected in 5 CFR 2634.701(b)--which was
previously adjusted to a maximum of $56,916--to a maximum of $57,847.
Consistent with the implementation of the ``catch-up'' penalty
adjustments, these adjusted penalty amounts will
[[Page 8132]]
apply only to penalties assessed after January 15, 2017 (the
applicability date of this final rule) whose associated violations
occurred after November 2, 2015.
OGE will continue to make future annual inflationary adjustments to
the Ethics Act CMPs in accordance with the statutory formula set forth
in the 2015 Act.
II. Matters of Regulatory Procedure
Administrative Procedure Act
Pursuant to 5 U.S.C. 553(b), as Director of the Office of
Government Ethics, I find that good cause exists for waiving the
general notice of proposed rulemaking and public comment procedures as
to these technical amendments. The notice and comment procedures are
being waived because these amendments, which concern matters of agency
organization, procedure and practice, are being adopted in accordance
with statutorily mandated inflation adjustment procedures of the 2015
Act, which specifies that agencies shall adjust civil monetary
penalties notwithstanding Section 553 of the Administrative Procedure
Act. It is also in the public interest that the adjusted rates for
civil monetary penalties under the Ethics in Government Act become
effective as soon as possible in order to maintain their deterrent
effect.
Regulatory Flexibility Act
As the Director of the Office of Government Ethics, I certify under
the Regulatory Flexibility Act (5 U.S.C. chapter 6) that this final
rule would not have a significant economic impact on a substantial
number of small entities because it primarily affects current Federal
executive branch employees.
Paperwork Reduction Act
The Paperwork Reduction Act (44 U.S.C. chapter 35) does not apply
because this regulation does not contain information collection
requirements that require approval of the Office of Management and
Budget.
Unfunded Mandates Reform Act
For purposes of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
chapter 5, subchapter II), this rule would not significantly or
uniquely affect small governments and will not result in increased
expenditures by State, local, and tribal governments, in the aggregate,
or by the private sector, of $100 million or more (as adjusted for
inflation) in any one year.
Executive Order 13563 and Executive Order 12866
Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select the regulatory approaches that
maximize net benefits (including economic, environmental, public health
and safety effects, distributive impacts, and equity). Executive Order
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
The Office of Management and Budget has determined that rulemakings
such as this implementing annual inflationary adjustments under the
2015 Act are not significant regulatory actions under Executive Order
12866.
Executive Order 12988
As Director of the Office of Government Ethics, I have reviewed
this rule in light of section 3 of Executive Order 12988, Civil Justice
Reform, and certify that it meets the applicable standards provided
therein.
List of Subjects
5 CFR Part 2634
Certificates of divestiture, Conflict of interests, Government
employees, Penalties, Reporting and recordkeeping requirements, Trusts
and trustees.
5 CFR Part 2636
Conflict of interests, Government employees, Penalties.
Dated: January 9, 2017.
Walter M. Shaub, Jr.,
Director, U.S. Office of Government Ethics.
Accordingly, for the reasons set forth in the preamble, the U.S.
Office of Government Ethics is adopting the interim final rule
published at 81 FR 41787 (June 28, 2016) as a final rule with the
following changes:
PART 2634--EXECUTIVE BRANCH FINANCIAL DISCLOSURE, QUALIFIED TRUSTS,
AND CERTIFICATES OF DIVESTITURE
0
1. The authority citation for part 2634 continues to read as follows:
Authority: 5 U.S.C. App. (Ethics in Government Act of 1978); 26
U.S.C. 1043; Pub. L. 101-410, 104 Stat. 890, 28 U.S.C. 2461 note
(Federal Civil Penalties Inflation Adjustment Act of 1990), as
amended by Sec. 31001, Pub. L. 104-134, 110 Stat. 1321 (Debt
Collection Improvement Act of 1996) and Sec. 701, Pub. L. 114-74
(Federal Civil Penalties Inflation Adjustment Act Improvements Act
of 2015); E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., p. 215, as
modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p. 306.
0
2. Section 2634.701 is amended by revising paragraph (b) to read as
follows:
Sec. 2634.701 Failure to file or falsifying reports.
* * * * *
(b) Civil action. The Attorney General may bring a civil action in
any appropriate United States district court against any individual who
knowingly and willfully falsifies or who knowingly and willfully fails
to file or report any information required by filers of public reports
under subpart B of this part. The court in which the action is brought
may assess against the individual a civil monetary penalty in any
amount, not to exceed the amounts set forth below, as provided by
section 104(a) of the Act, as amended, and as adjusted in accordance
with the inflation adjustment procedures prescribed in the Federal
Civil Penalties Inflation Adjustment Act of 1990, as amended:
------------------------------------------------------------------------
Date of violation Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 14, 2007 and Nov. 2, 2015.. $50,000
Violation occurring after Nov. 2, 2015....................... 57,847
------------------------------------------------------------------------
* * * * *
0
3. Section 2634.702 is revised to read as follows:
Sec. 2634.702 Breaches by trust fiduciaries and interested parties.
(a) The Attorney General may bring a civil action in any
appropriate United States district court against any individual who
knowingly and willfully violates the provisions of Sec. 2634.408(d)(1)
or (e)(1). The court in which the action is brought may assess against
the individual a civil monetary penalty in any amount, not to exceed
the amounts set forth below, as provided by section 102(f)(6)(C)(i) of
the Act and as adjusted in accordance with the inflation adjustment
procedures prescribed in the Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended:
------------------------------------------------------------------------
Date of violation Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015.. $11,000
Violation occurring after Nov. 2, 2015....................... 19,246
------------------------------------------------------------------------
(b) The Attorney General may bring a civil action in any
appropriate United States district court against any individual who
negligently violates the provisions of Sec. 2634.408(d)(1) or (e)(1).
The court in which the action is brought
[[Page 8133]]
may assess against the individual a civil monetary penalty in any
amount, not to exceed the amounts set forth below, as provided by
section 102(f)(6)(C)(ii) of the Act and as adjusted in accordance with
the inflation adjustment procedures of the Federal Civil Penalties
Inflation Adjustment Act of 1990, as amended:
------------------------------------------------------------------------
Date of violation Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015.. $5,500
Violation occurring after Nov. 2, 2015....................... 9,623
------------------------------------------------------------------------
0
4. Section 2634.703 is revised to read as follows:
Sec. 2634.703 Misuse of public reports.
(a) The Attorney General may bring a civil action against any
person who obtains or uses a report filed under this part for any
purpose prohibited by section 105(c)(1) of the Act, as incorporated in
Sec. 2634.603(f). The court in which the action is brought may assess
against the person a civil monetary penalty in any amount, not to
exceed the amounts set forth below, as provided by section 105(c)(2) of
the Act and as adjusted in accordance with the inflation adjustment
procedures prescribed in the Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended:
------------------------------------------------------------------------
Date of violation Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015.. $11,000
Violation occurring after Nov. 2, 2015....................... 19,246
------------------------------------------------------------------------
(b) This remedy shall be in addition to any other remedy available
under statutory or common law.
PART 2636--LIMITATIONS ON OUTSIDE EARNED INCOME, EMPLOYMENT AND
AFFILIATIONS FOR CERTAIN NONCAREER EMPLOYEES
0
5. The authority citation for part 2636 continues to read as follows:
Authority: 5 U.S.C. App. (Ethics in Government Act of 1978);
Pub. L. 101-410, 104 Stat. 890, 28 U.S.C. 2461 note (Federal Civil
Penalties Inflation Adjustment Act of 1990), as amended by Sec.
31001, Pub. L. 104-134, 110 Stat. 1321 (Debt Collection Improvement
Act of 1996) and Sec. 701, Pub. L. 114-74 (Federal Civil Penalties
Inflation Adjustment Act Improvements Act of 2015); E.O. 12674, 54
FR 15159, 3 CFR, 1989 Comp., p. 215, as modified by E.O. 12731, 55
FR 42547, 3 CFR, 1990 Comp., p. 306.
0
6. Section 2636.104 is amended by revising paragraph (a) to read as
follows:
Sec. 2636.104 Civil, disciplinary and other action.
(a) Civil action. Except when the employee engages in conduct in
good faith reliance upon an advisory opinion issued under Sec.
2636.103, an employee who engages in any conduct in violation of the
prohibitions, limitations and restrictions contained in this part may
be subject to civil action under 5 U.S.C. app. 504(a) and a civil
monetary penalty of not more than the amounts set forth below, as
adjusted in accordance with the inflation adjustment procedures
prescribed in the Federal Civil Penalties Inflation Adjustment Act of
1990, as amended, or the amount of the compensation the individual
received for the prohibited conduct, whichever is greater.
------------------------------------------------------------------------
Date of violation Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015.. $11,000
Violation occurring after Nov. 2, 2015....................... 19,246
------------------------------------------------------------------------
* * * * *
[FR Doc. 2017-00627 Filed 1-23-17; 8:45 am]
BILLING CODE 6345-03-P