Authority of the Assistant Attorneys General To Compromise or Close Civil Claims, 30617-30619 [2015-12991]

Agencies

• Department of Justice
• Office of the Attorney General

[Federal Register Volume 80, Number 103 (Friday, May 29, 2015)]
[Rules and Regulations]
[Pages 30617-30619]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-12991]


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DEPARTMENT OF JUSTICE

Office of the Attorney General

28 CFR Part 0

[Docket No. OAG 147; AG Order No. 3532-2015]


Authority of the Assistant Attorneys General To Compromise or 
Close Civil Claims

AGENCY: Department of Justice.

ACTION: Final rule.

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SUMMARY: This final rule amends the Department's regulations to 
increase the authority currently delegated to the Assistant Attorneys 
General to compromise or close civil claims and to make certain 
technical corrections.

DATES: Effective May 29, 2015

FOR FURTHER INFORMATION CONTACT: August E. Flentje, Acting Deputy 
Assistant Attorney General, Civil Division, Department of Justice, 
Washington, DC 20530; (202) 514-3309.

SUPPLEMENTARY INFORMATION: The current delegations of authority to 
compromise or close civil claims are contained in 28 CFR part 0, 
subpart Y, Sec. Sec.  0.160-0.169. See 60 FR 15675 (Mar. 27, 1995). 
This final rule increases the monetary thresholds for the exercise of 
this authority by the Assistant Attorneys General and increases the 
redelegation authority to the United States Attorneys with respect to 
accepting offers of compromise for affirmative claims.
    This final rule amends 28 CFR 0.160(a)(1) to increase the authority 
of the Assistant Attorneys General to compromise a civil claim asserted 
by the United States where the proposed settlement is within $10 
million or 15 percent of the original claim (up from the current 
threshold of $2 million or 15 percent of the original claim). As 
provided in Sec.  0.164, this change to Sec.  0.160(a)(1) also means 
that the Assistant Attorneys General will have authority to close 
affirmative civil matters within the same new limits.
    The final rule adds a new paragraph Sec.  0.160(a)(2) to allow the 
Assistant Attorneys General to accept compromises in affirmative civil 
cases independent of the $10 million cap in the limited circumstance 
where a qualified financial expert has reviewed the defendant's 
finances and has determined that the defendant likely does not have the 
ability to pay more than the proposed compromise offer. This would 
obviate the need to obtain higher level approval when claims are being 
compromised simply based on the defendant's financial condition rather 
than an analysis of the legal or factual merits of the claim. To 
clarify that new Sec.  0.160(a)(2) applies to all cases within the 
authority of the Assistant Attorney General for the Environment and 
Natural Resources Division, including cases brought under the 
Comprehensive Environmental Response, Compensation and Liability Act, 
42 U.S.C. 9601 et seq., the final rule also amends Sec.  0.160(c)(2) by 
removing language similar to new Sec.  0.160(a)(2).
    In addition, the final rule also increases the authority for the 
Assistant Attorneys General to accept offers in compromise of claims 
asserted against the United States of up to $4 million (up from the 
current threshold of $2 million). See new Sec.  0.160(a)(3) (currently 
Sec.  0.160(a)(2)).
    The final rule also amends Sec.  0.168(d) to allow a delegation of 
authority to the United States Attorneys to compromise claims asserted 
by the United States for up to $10 million (up from a claim of $5 
million where the settlement difference does not exceed $1 million). 
Citations to subsections of Sec.  0.160 in Sec. Sec.  0.162 and 0.168 
also have been revised in light of the changes to Sec.  0.160.

[[Page 30618]]

    Finally, this final rule would update the agency reference in Sec.  
0.169(b) defining the term ``gross amount of the original claim'' for 
purposes of any civil claim brought under section 592 of the Tariff Act 
of 1930, as amended.

Regulatory Certifications

Administrative Procedure Act

    This rule relates to a matter of agency management or personnel and 
is a rule of agency organization, procedure, and practice. As such, 
this rule is exempt from the usual requirements of prior notice and 
comment and a 30-day delay in effective date. See 5 U.S.C. 553.

Regulatory Flexibility Act

    The Attorney General, in accordance with the Regulatory Flexibility 
Act, 5 U.S.C. 605(b), has reviewed this rule, and by approving it, 
certifies that it will not have an impact on a substantial number of 
small entities because it pertains to personnel and administrative 
matters affecting the Department. Further, a Regulatory Flexibility 
Analysis is not required for this final rule because the Department was 
not required to publish a general notice of proposed rulemaking for 
this matter.

Executive Orders 12866 and 13563

    This rule has been drafted and reviewed in accordance with 
Executive Order 12866, ``Regulatory Planning and Review,'' section 
l(b), Principles of Regulation, and with Executive Order 13563, 
``Improving Regulation and Regulatory Review.'' This final rule is 
``limited to agency organization, management, or personnel matters'' 
and thus is not a ``rule'' as described by Executive Order 12866, 
section 3(d)(3) and, therefore, is not a ``regulation'' or ``rule'' as 
defined by that Executive Order.

Executive Order 12988

    This regulation meets the applicable standards set forth in 
sections 3(a) and 3(b)(2) of Executive Order 12988, ``Civil Justice 
Reform.''

Executive Order 13132

    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, ``Federalism,'' the Department has determined that this rule 
does not have sufficient federalism implications to warrant the 
preparation of a federalism summary impact statement.

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 (adjusted for inflation) in any one year, and it will 
not significantly or uniquely affect small governments. Therefore, no 
actions are necessary under the provisions of the Unfunded Mandates 
Reform Act of 1995, 2 U.S.C. 1501 et seq.

Small Business Regulatory Enforcement Fairness Act of 1996

    This rule is not a major rule as defined by section 251 of the 
Small Business Regulatory Enforcement Fairness Act of 1996, 5 U.S.C. 
804. This rule will not result in an annual effect on the economy of 
$100 million or more; a major increase in costs or prices; or 
significant adverse effects on competition, employment, investment, 
productivity, innovation, or the ability of United States-based 
enterprises to compete with foreign-based enterprises in domestic and 
export markets.

Congressional Review Act

    This action pertains to agency management, personnel, and 
organization and does not substantially affect the rights or 
obligations of non-agency parties. Accordingly, it is not a ``rule'' 
for purposes of the reporting requirement of 5 U.S.C. 801.

List of Subjects in 28 CFR Part 0

    Authority delegations (Government agencies), Government employees, 
Organization and functions (Government agencies), Privacy, Reporting 
and recordkeeping requirements, Whistleblowing.

    Accordingly, by virtue of the authority vested in me as Attorney 
General, including 5 U.S.C. 301 and 28 U.S.C. 509, 510, and for the 
reasons set forth in the preamble, part 0 of title 28 of the Code of 
Federal Regulations is amended as follows:

PART 0--ORGANIZATION OF THE DEPARTMENT OF JUSTICE

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

    Authority: 5 U.S.C. 301; 28 U.S.C. 509, 510, 515-19.


0
2. In Sec.  0.160, revise paragraphs (a), (c) introductory text, and 
(c)(2) to read as follows:


Sec.  0.160  Offers that may be accepted by Assistant Attorneys 
General.

    (a) Subject to the limitations set forth in paragraph (d) of this 
section, Assistant Attorneys General are authorized, with respect to 
matters assigned to their respective divisions, to:
    (1) Accept offers in compromise of claims asserted by the United 
States in all cases in which the difference between the gross amount of 
the original claim and the proposed settlement does not exceed 
$10,000,000 or 15 percent of the original claim, whichever is greater;
    (2) Accept offers in compromise of claims asserted by the United 
States in all cases in which a qualified financial expert has 
determined that the offer in compromise is likely the maximum that the 
offeror has the ability to pay;
    (3) Accept offers in compromise of, or settle administratively, 
claims against the United States in all cases in which the principal 
amount of the proposed settlement does not exceed $4,000,000; and
    (4) Accept offers in compromise in all nonmonetary cases.
* * * * *
    (c) Subject to the limitations set forth in paragraph (d) of this 
section, the Assistant Attorney General, Environment and Natural 
Resources Division, is further authorized to approve settlements under 
the Comprehensive Environmental Response, Compensation and Liability 
Act, 42 U.S.C. 9601 et seq., regardless of the amount of the proposed 
settlement, with:
* * * * *
    (2) Parties whose responsibility can be equitably allocated and are 
paying at least the allocated amount.
* * * * *


Sec.  0.162  [Amended]

0
3. Amend Sec.  0.162 by removing the reference to ``Sec.  0.160(c)(2)'' 
and adding in its place ``Sec.  0.160(d)(2)''.
0
4. Amend Sec.  0.168:
0
a. In paragraph (a) by removing the reference to ``Sec. Sec.  0.160(a) 
and (b)'' and adding in its place ``Sec. Sec.  0.160(a), (b), and 
(c)''; and
0
b. By revising paragraphs (d) introductory text and (d)(1).
    The revisions read as follows:


Sec.  0.168  Redelegation by Assistant Attorneys General.

* * * * *
    (d) Subject to the limitations set forth in Sec.  0.160(d) and 
paragraph (a) of this section, redelegations by the Assistant Attorneys 
General to United States Attorneys may include the authority to:
    (1) Accept offers in compromise of claims asserted by the United 
States in all cases in which the gross amount of

[[Page 30619]]

the original claim does not exceed $10,000,000; and
* * * * *


Sec.  0.169  [Amended]

0
5. Amend paragraph (b) of Sec.  0.169 by removing the words ``Customs 
Service's'' and adding in their place the words ``United States Customs 
and Border Protection's''.

    Dated: May 21, 2015.
Loretta E. Lynch,
Attorney General.
[FR Doc. 2015-12991 Filed 5-28-15; 8:45 am]
 BILLING CODE 4410-12-P