Civil Monetary Penalty Inflation Adjustment, 26127-26129 [2016-09959]

Download as PDF Federal Register / Vol. 81, No. 84 / Monday, May 2, 2016 / Rules and Regulations mstockstill on DSK3G9T082PROD with RULES Ausgabe (English translation: Dated) July 15, 2015; and DG Flugzeugbau GmbH Technical note No. 1000/26, dated September 23, 2015, with 10M072 titled Propellermontage nach TM 1000–26 (English translation: Propeller assembly TN 1000–26), dated July 14, 2015. This modification allows engine operation. Note 2 to paragraph (f)(6) of this AD: This service information contains German to English translation. The EASA used the English translation in referencing the document. For enforceability purposes, we will refer to the Solo Kleinmotoren service information and the DG Flugzeugbau GmbH as it appears on the document. (7) Before further flight after doing the modification allowed in (f)(6) of this AD, remove the AD placed into the Limitations section of the AFM as required in paragraph (f)(3) of this AD. (g) Other FAA AD Provisions The following provisions also apply to this AD: (1) Alternative Methods of Compliance (AMOCs): The Manager, Standards Office, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. Send information to ATTN: Jim Rutherford, Aerospace Engineer, Small Airplane Directorate, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone: (816) 329–4165; fax: (816) 329– 4090; email: jim.rutherford@faa.gov. Before using any approved AMOC on any airplane to which the AMOC applies, notify your appropriate principal inspector (PI) in the FAA Flight Standards District Office (FSDO), or lacking a PI, your local FSDO. (2) Airworthy Product: For any requirement in this AD to obtain corrective actions from a manufacturer or other source, use these actions if they are FAA-approved. Corrective actions are considered FAA-approved if they are approved by the State of Design Authority (or their delegated agent). You are required to assure the product is airworthy before it is returned to service. (3) Reporting Requirements: For any reporting requirement in this AD, a federal agency may not conduct or sponsor, and a person is not required to respond to, nor shall a person be subject to a penalty for failure to comply with a collection of information subject to the requirements of the Paperwork Reduction Act unless that collection of information displays a current valid OMB Control Number. The OMB Control Number for this information collection is 2120–0056. Public reporting for this collection of information is estimated to be approximately 5 minutes per response, including the time for reviewing instructions, completing and reviewing the collection of information. All responses to this collection of information are mandatory. Comments concerning the accuracy of this burden and suggestions for reducing the burden should be directed to the FAA at: 800 Independence Ave. SW., Washington, DC 20591, Attn: Information Collection Clearance Officer, AES–200. (h) Related Information Refer to MCAI European Aviation Safety Agency (EASA) AD No.: 2015–0052R1, dated VerDate Sep<11>2014 17:39 Apr 29, 2016 Jkt 238001 November 19, 2015, for related information. You may examine the MCAI on the Internet at https://www.regulations.gov/#!document Detail;D=FAA-2015-1130-0002. (i) Material Incorporated by Reference (1) The Director of the Federal Register approved the incorporation by reference (IBR) of the service information listed in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51. (2) You must use this service information as applicable to do the actions required by this AD, unless the AD specifies otherwise. (3) The following service information was approved for IBR on June 6, 2016. (i) Solo Kleinmotoren GmbH Techniseche Mitteilung (English translation: Service Bulletin) Nr. 4603–17, Ausgabe (English translation: Dated) July 15, 2015. Note 3 to paragraphs (i)(3)(i) and (i)(3)(ii) of this AD: This service information contains German to English translation. The EASA used the English translation in referencing the document. For enforceability purposes, we will refer to the Solo Kleinmotoren service information and the DG Flugzeugbau GmbH as it appears on the document. (ii) DG Flugzeugbau GmbH Technical note No. 1000/26, dated September 23, 2015, with 10M072 titled Propellermontage nach TM 1000–26 (English translation: Propeller assembly TN 1000–26), dated July 14, 2015. (4) The following service information was approved for IBR on May 26, 2015 (80 FR 25591, May 5, 2015). (i) Solo Kleinmotoren GmbH Anleitung zur Inspektion (English translation: Inspection Instruction), Nr. 4603–1, Ausgabe (English translation: Dated) March 26, 2015. Note 4 to paragraph (i)(4)(i) of this AD: This service information contains German to English translation. The EASA used the English translation in referencing the document. For enforceability purposes, we will refer to the Solo Kleinmotoren service information as it appears on the document. (ii) Reserved. (5) For service information identified in this AD, contact Solo Kleinmotoren GmbH, Postfach 600152, 71050 Sindelfingen, Germany; telephone: +49 7031 301–0; fax: +49 7031 301–136; email: aircraft@sologermany.com; Internet: http://aircraft.soloonline.com/com. (6) You may view this service information at FAA, Small Airplane Directorate, 901 Locust, Kansas City, Missouri 64106. For information on the availability of this material at the FAA, call (816) 329–4148. In addition, you can access this service information on the Internet at http:// www.regulations.gov by searching for and locating Docket No. FAA–2015–1130. (7) You may view this service information that is incorporated by reference at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, call 202–741–6030, or go to: http:// www.archives.gov/federal-register/cfr/ibrlocations.html. PO 00000 Frm 00031 Fmt 4700 Sfmt 4700 26127 Issued in Kansas City, Missouri, on April 11, 2016. Melvin Johnson, Acting Manager, Small Airplane Directorate, Aircraft Certification Service. [FR Doc. 2016–08961 Filed 4–29–16; 8:45 am] BILLING CODE 4910–13–P RAILROAD RETIREMENT BOARD 20 CFR Part 356 RIN 3220–AB68 Civil Monetary Penalty Inflation Adjustment Railroad Retirement Board. Interim final rule. AGENCY: ACTION: As required by Section 701 of the Bipartisan Budget Act of 2015, entitled the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, the Railroad Retirement Board (Board) hereby amends its regulations to provide for adjustments in the minimum and maximum amounts of civil monetary penalties under the Board’s jurisdiction. The amendment will increase the amount of penalties to adjust for inflation since the Board last adjusted its penalty amounts, and will provide the formula to be used for required annual adjustments in the penalty amounts. DATES: Effective August 1, 2016. Comments must be received on or before July 1, 2016. ADDRESSES: You may submit comments, identified by RIN 3220–AB68, by any of the following methods: 1. Internet—Send comments via email to SecretarytotheBoard@rrb.gov. 2. Fax—(312) 751–3336. 3. Mail—Secretary to the Board, Railroad Retirement Board, 844 N. Rush Street, Chicago, Illinois 60611–2092. Do not submit the same comments multiple times or by more than one method. Regardless of which method you choose, please state that your comments refer to RIN 3220–AB68. Caution: You should be careful to include in your comments only information that you wish to make publicly available as comments are posted without change, with any personal information provided. The Board strongly urges you not to include in your comments any personal information, such as Social Security numbers or medical information. FOR FURTHER INFORMATION CONTACT: Marguerite P. Dadabo, Assistant General Counsel, Railroad Retirement Board, 844 North Rush Street, Chicago, IL 60611–2092, (312) 751–4945, TTD (312) 751–4701. SUMMARY: E:\FR\FM\02MYR1.SGM 02MYR1 26128 Federal Register / Vol. 81, No. 84 / Monday, May 2, 2016 / Rules and Regulations Section 701 of the Bipartisan Budget Act of 2015, Public Law 114–74 (Nov. 2, 2015), entitled the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 Act), amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note) (Inflation Adjustment Act) to require agencies to publish regulations adjusting the amount of civil monetary penalties provided by law within the jurisdiction of the agency not later than July 1, 2016. The penalties authorized by the Program Fraud Civil Remedies Act, 31 U.S.C. 3801 et seq. (PFCRA), and the False Claims Act provisions at 31 U.S.C. 3729(a), are within the Board’s jurisdiction, and the Board accordingly publishes this interim final rule in compliance with the 2015 Act. This interim final rule is being issued without prior public notice or opportunity for public comments. The 2015 Act’s amendments to the Inflation Adjustment Act require the agency to adjust penalties initially through an interim final rulemaking, which does not require the agency to complete a notice and comment process prior to promulgating the interim final rule. The amendments also explicitly require the agency to make subsequent annual adjustments notwithstanding 5 U.S.C. 553 (the section of the Administrative Procedure Act that normally requires agencies to engage in notice and comment). Additionally, the formula used for adjusting the amount of civil penalties is given by statute, with no discretion provided to the Board regarding the substance of the adjustments. The Board is charged only with performing ministerial computations to determine the amount of adjustment to the civil penalties due to increases in the Consumer Price Index for all Urban Consumers (CPI–U). mstockstill on DSK3G9T082PROD with RULES SUPPLEMENTARY INFORMATION: Prior Adjustment History The Board last adjusted the civil penalties under its jurisdiction effective October 23, 1996, pursuant to the Inflation Adjustment Act, when the maximum penalty under the PFCRA was adjusted from $5,000 to $5,500 and the minimum and maximum penalties under 31 U.S.C. 3729 were adjusted from $5,000 to $5,500 and from $10,000 to $11,000, respectively. While the formula used to calculate these adjustments initially yielded higher final penalty amounts, the Debt Collection Improvement Act of 1996, Public Law 104–134, limited the amount of these previous adjustments to no more than 10 percent of the penalty amount or range, as appropriate. Therefore, the penalties were increased VerDate Sep<11>2014 17:39 Apr 29, 2016 Jkt 238001 by the statutory maximum of 10 percent. Prior to the October 23, 1996 adjustment, the Board last set or adjusted these penalty levels in 1986. Initial Adjustment Under the 2015 Act For the first adjustment made in accordance with the 2015 Act, the amount of the adjustment is calculated based on the percent change between the CPI–U for October of the last year in which penalties were previously adjusted (not including any adjustment made pursuant to the Inflation Adjustment Act before November 2, 2015), and the CPI–U for October 2015. The 10 percent cap on adjustments imposed by the Debt Collection Improvement Act of 1996 has been eliminated by the 2015 Act. Instead, the 2015 Act imposes a cap on the amount of this initial adjustment, such that the amount of the increase may not exceed 150 percent of the pre-adjustment penalty amount or range. As a result, the total penalty amount or range after the initial adjustment under the 2015 Act may not exceed 250 percent of the preadjustment penalty amount or range. For purposes of the initial adjustment under the 2015 Act, the Board last set or adjusted the amount of civil penalties in 1986. The 1996 adjustment must be disregarded for these calculations because that adjustment was made pursuant to the Inflation Adjustment Act and subject to the 10 percent cap imposed by the Debt Collection Improvement Act of 1996. Between October 1986 and October 2015, the CPI–U has increased by 215.628 percent. The post-adjustment penalty amount or range is obtained by multiplying the pre-adjustment penalty amount or range by the percent change in the CPI–U over the relevant time period, and rounding to the nearest dollar. Therefore, the new, postadjustment maximum penalty under the PFCRA is $5,000 × 2.15628 = $10,781.40, which rounds to $10,781. The new, post-adjustment minimum penalty under 31 U.S.C. 3729 is $5,000 × 2.15628 = $10,781.40, which rounds to $10,781. The new, post-adjustment maximum penalty under 31 U.S.C. 3729 is $10,000 × 2.15628 = $21,562.80, which rounds to $21,563. The new, post-adjustment penalties are less than 250 percent of the pre-adjustment penalties, so the limitation on the amount of the adjustment is not implicated. Therefore, the maximum penalty under the PFRCA for claims or statements made after August 1, 2016 will be $10,781, and the minimum and maximum penalties for false claims under 31 U.S.C. 3729 will be $10,781 and $21,563 respectively. PO 00000 Frm 00032 Fmt 4700 Sfmt 4700 Subsequent Annual Adjustments The 2015 Act also requires agencies to make annual adjustments to civil penalty amounts no later than January 15 of each year following the initial adjustment described above. The 2015 Act requires that these subsequent annual adjustments shall be made ‘‘notwithstanding section 553 of title 5, United States Code.’’ As noted earlier, this provision in the 2015 Act eliminates the requirement for public notice or opportunity for public comment prior to the publication of the final adjustment. For subsequent adjustments made in accordance with the 2015 Act, the amount of the adjustment is based on the percent increase between the CPI–U for the month of October preceding the date of the adjustment and the CPI–U for the October one year prior to the October immediately preceding the date of the adjustment. If there is no increase, there is no adjustment of civil penalties. Therefore, if the Board adjusts penalties in January 2017, the adjustment will be calculated based on the percent change between the CPI–U for October 2016 (the October immediately preceding the date of adjustment) and October 2015 (the October one year prior to October 2016). The Board will publish the amount of these annual inflation adjustments in the Federal Register no later than January 15 of each year, starting in 2017. Regulatory Procedures Executive Order 12866, as Supplemented by Executive Order 13563 The Board, with the concurrence of the Office of Management and Budget, has determined that this is not a significant regulatory action under Executive Order 12866, as supplemented by Executive Order 13563. Therefore, no regulatory impact analysis is required. Regulatory Flexibility Act The Board certifies that this rule would not have a significant economic impact on a substantial number of small entities because it affects individuals only. Therefore, a regulatory flexibility analysis is not required under the Regulatory Flexibility Act, as amended. Paperwork Reduction Act This interim final rule imposes no reporting or recordkeeping requirements subject to OMB clearance. List of Subjects in 20 CFR Part 356 Claims, Penalties. E:\FR\FM\02MYR1.SGM 02MYR1 Federal Register / Vol. 81, No. 84 / Monday, May 2, 2016 / Rules and Regulations For the reasons set out in the preamble, the Railroad Retirement Board revises title 20, chapter II, subchapter E, part 356 of the Code of Federal Regulations to read as follows: PART 356—CIVIL MONETARY PENALTY INFLATION ADJUSTMENT Sec. 356.1 Introduction. 356.2 Penalties under the Program Fraud Civil Remedies Act of 1986. 356.3 False claims. Authority: 28 U.S.C. 2461; 31 U.S.C. 3729, 3809. mstockstill on DSK3G9T082PROD with RULES § 356.1 Introduction. (a) The Federal Civil Penalties Inflation Adjustment Act, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (28 U.S.C. 2461 note), requires that civil monetary penalties be adjusted on an annual basis by the percentage by which the Consumer Price Index for all Urban Consumers (CPI–U) for the month of October preceding the adjustment exceeds the CPI–U for the month of October of the calendar year prior to the October preceding the adjustment, with final amounts rounded to the nearest dollar. That Act also requires a one-time catch up adjustment in the amount of the percentage by which the CPI–U for October 2015 exceeds the CPI–U for the month of October of the calendar year during which the amount of civil monetary penalty was established or adjusted under a provision of law other than the Federal Civil Penalties Inflation Adjustment Act. (b) Other than adjustments under the Federal Civil Penalties Inflation Adjustment Act, the Board last established or adjusted civil monetary penalties in 1986. The CPI–U increased by 215.628 percent between October 1986 and October 2015. (c) Imposition of the increased civil monetary penalties are limited to actions occurring after the effective date of the increases. (d) The amount of the one-time catch up adjustment may not exceed 150 percent of the penalty amount or range as of November 2, 2015. The ten percent cap on increases imposed by the Debt Collection Improvements Act of 1996 was eliminated in the 2015 amendments to the Federal Civil Penalties Inflation Adjustment Act, and is no longer applicable. § 356.2 Penalties under the Program Fraud Civil Remedies Act of 1986. (a) For claims or statements made on or before October 23, 1996, the maximum penalty which may be VerDate Sep<11>2014 17:39 Apr 29, 2016 Jkt 238001 assessed under part 355 of this chapter is $5,000. (b) For claims or statements made after October 23, 1996, but before August 1, 2016, the maximum penalty which may be assessed under part 355 of this chapter is $5,500. (c) For claims or statements made on or after August 1, 2016, but before January 1, 2017, the maximum penalty which may be assessed under part 355 of this chapter is $10,781. (d) For claims or statements made on or after January 1, 2017, the maximum penalty which may be assessed under part 355 of this chapter is the larger of: (1) The amount for the previous calendar year; or (2) An amount adjusted for inflation, calculated by multiplying the amount for the previous calendar year by the percentage by which the CPI–U for the month of October preceding the current calendar year exceeds the CPI–U for the month of October of the calendar year two years prior to the current calendar year, adding that amount to the amount for the previous calendar year, and rounding the total to the nearest dollar. (e) Notice of the maximum penalty which may be assessed under part 355 of this chapter for calendar years after 2016 will be published by the Board in the Federal Register on an annual basis on or before January 15 of each calendar year. § 356.3 False claims. (a) For claims or statements made on or before October 23, 1996, the minimum penalty which may be assessed under 31 U.S.C. 3729 is $5,000 and the maximum penalty is $10,000. (b) For claims or statements made after October 23, 1996, but before August 1, 2016, the minimum penalty which may be assessed under 31 U.S.C. 3729 is $5,500 and the maximum penalty is $11,000. (c) For claims or statements made on or after August 1, 2016, but before January 1, 2017, the minimum penalty which may be assessed under 31 U.S.C. 3729 is $10,781 and the maximum penalty is $21,563. (d) For claims or statements made on or after January 1, 2017, the minimum and maximum penalty amounts which may be assessed under 31 U.S.C. 3729 is the larger of: (1) The amount for the previous calendar year; or (2) An amount adjusted for inflation, calculated by multiplying the amount for the previous calendar year by the percentage by which the CPI–U for the month of October preceding the current calendar year exceeds the CPI–U for the month of October of the calendar year PO 00000 Frm 00033 Fmt 4700 Sfmt 4700 26129 two years prior to the current calendar year, adding that amount to the amount for the previous calendar year, and rounding the total to the nearest dollar. (e) Notice of the minimum and maximum penalty which may be assessed under 31 U.S.C. 3729 for calendar years after 2016 will be published by the Board in the Federal Register on an annual basis on or before January 15 of each calendar year. By Authority of the Board. Martha P. Rico, Secretary to the Board. [FR Doc. 2016–09959 Filed 4–29–16; 8:45 am] BILLING CODE P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 117 [Docket No. USCG–2016–0139] Drawbridge Operation Regulation; Long Creek & Sloop Channel, Hempstead, NY Coast Guard, DHS. Notice of deviation from drawbridge regulation; modification. AGENCY: ACTION: The Coast Guard has modified a temporary deviation from the operating schedule that governs the Loop Parkway Bridge, mile 0.7, across Long Creek, and the Meadowbrook State Parkway Bridge, mile 12.8, across Sloop Channel, both at Hempstead, New York. This modified deviation is necessary to facilitate the Dee Snider’s Motorcycle Ride to Fight Hunger on Long Island. DATES: This modified deviation is effective from 11 a.m. to 1 p.m. on October 2, 2016. ADDRESSES: The docket for this modified deviation, [USCG–2016–0139] is available at http:// www.regulations.gov. Type the docket number in the ‘‘SEARCH’’ box and click ‘‘SEARCH.’’ Click on Open Docket Folder on the line associated with this deviation. FOR FURTHER INFORMATION CONTACT: If you have questions on this temporary deviation, call or email Ms. Judy K. Leung-Yee, Project Officer, First Coast Guard District, telephone (212) 514– 4330, email judy.k.leung-yee@uscg.mil. SUPPLEMENTARY INFORMATION: On February 29, 2016, the Coast Guard published a temporary deviation entitled ‘‘Drawbridge Operation Regulation; Long Creek & Sloop Channel, Hempstead, NY’’ in the SUMMARY: E:\FR\FM\02MYR1.SGM 02MYR1

Agencies

[Federal Register Volume 81, Number 84 (Monday, May 2, 2016)]
[Rules and Regulations]
[Pages 26127-26129]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-09959]


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RAILROAD RETIREMENT BOARD

20 CFR Part 356

RIN 3220-AB68


Civil Monetary Penalty Inflation Adjustment

AGENCY: Railroad Retirement Board.

ACTION: Interim final rule.

-----------------------------------------------------------------------

SUMMARY: As required by Section 701 of the Bipartisan Budget Act of 
2015, entitled the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015, the Railroad Retirement Board (Board) hereby 
amends its regulations to provide for adjustments in the minimum and 
maximum amounts of civil monetary penalties under the Board's 
jurisdiction. The amendment will increase the amount of penalties to 
adjust for inflation since the Board last adjusted its penalty amounts, 
and will provide the formula to be used for required annual adjustments 
in the penalty amounts.

DATES: Effective August 1, 2016. Comments must be received on or before 
July 1, 2016.

ADDRESSES: You may submit comments, identified by RIN 3220-AB68, by any 
of the following methods:
    1. Internet--Send comments via email to 
SecretarytotheBoard@rrb.gov.
    2. Fax--(312) 751-3336.
    3. Mail--Secretary to the Board, Railroad Retirement Board, 844 N. 
Rush Street, Chicago, Illinois 60611-2092.
    Do not submit the same comments multiple times or by more than one 
method. Regardless of which method you choose, please state that your 
comments refer to RIN 3220-AB68.
    Caution: You should be careful to include in your comments only 
information that you wish to make publicly available as comments are 
posted without change, with any personal information provided. The 
Board strongly urges you not to include in your comments any personal 
information, such as Social Security numbers or medical information.

FOR FURTHER INFORMATION CONTACT: Marguerite P. Dadabo, Assistant 
General Counsel, Railroad Retirement Board, 844 North Rush Street, 
Chicago, IL 60611-2092, (312) 751-4945, TTD (312) 751-4701.

[[Page 26128]]


SUPPLEMENTARY INFORMATION: Section 701 of the Bipartisan Budget Act of 
2015, Public Law 114-74 (Nov. 2, 2015), entitled the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015 (the 2015 
Act), amended the Federal Civil Penalties Inflation Adjustment Act of 
1990 (28 U.S.C. 2461 note) (Inflation Adjustment Act) to require 
agencies to publish regulations adjusting the amount of civil monetary 
penalties provided by law within the jurisdiction of the agency not 
later than July 1, 2016. The penalties authorized by the Program Fraud 
Civil Remedies Act, 31 U.S.C. 3801 et seq. (PFCRA), and the False 
Claims Act provisions at 31 U.S.C. 3729(a), are within the Board's 
jurisdiction, and the Board accordingly publishes this interim final 
rule in compliance with the 2015 Act.
    This interim final rule is being issued without prior public notice 
or opportunity for public comments. The 2015 Act's amendments to the 
Inflation Adjustment Act require the agency to adjust penalties 
initially through an interim final rulemaking, which does not require 
the agency to complete a notice and comment process prior to 
promulgating the interim final rule. The amendments also explicitly 
require the agency to make subsequent annual adjustments 
notwithstanding 5 U.S.C. 553 (the section of the Administrative 
Procedure Act that normally requires agencies to engage in notice and 
comment). Additionally, the formula used for adjusting the amount of 
civil penalties is given by statute, with no discretion provided to the 
Board regarding the substance of the adjustments. The Board is charged 
only with performing ministerial computations to determine the amount 
of adjustment to the civil penalties due to increases in the Consumer 
Price Index for all Urban Consumers (CPI-U).

Prior Adjustment History

    The Board last adjusted the civil penalties under its jurisdiction 
effective October 23, 1996, pursuant to the Inflation Adjustment Act, 
when the maximum penalty under the PFCRA was adjusted from $5,000 to 
$5,500 and the minimum and maximum penalties under 31 U.S.C. 3729 were 
adjusted from $5,000 to $5,500 and from $10,000 to $11,000, 
respectively. While the formula used to calculate these adjustments 
initially yielded higher final penalty amounts, the Debt Collection 
Improvement Act of 1996, Public Law 104-134, limited the amount of 
these previous adjustments to no more than 10 percent of the penalty 
amount or range, as appropriate. Therefore, the penalties were 
increased by the statutory maximum of 10 percent. Prior to the October 
23, 1996 adjustment, the Board last set or adjusted these penalty 
levels in 1986.

Initial Adjustment Under the 2015 Act

    For the first adjustment made in accordance with the 2015 Act, the 
amount of the adjustment is calculated based on the percent change 
between the CPI-U for October of the last year in which penalties were 
previously adjusted (not including any adjustment made pursuant to the 
Inflation Adjustment Act before November 2, 2015), and the CPI-U for 
October 2015. The 10 percent cap on adjustments imposed by the Debt 
Collection Improvement Act of 1996 has been eliminated by the 2015 Act. 
Instead, the 2015 Act imposes a cap on the amount of this initial 
adjustment, such that the amount of the increase may not exceed 150 
percent of the pre-adjustment penalty amount or range. As a result, the 
total penalty amount or range after the initial adjustment under the 
2015 Act may not exceed 250 percent of the pre-adjustment penalty 
amount or range.
    For purposes of the initial adjustment under the 2015 Act, the 
Board last set or adjusted the amount of civil penalties in 1986. The 
1996 adjustment must be disregarded for these calculations because that 
adjustment was made pursuant to the Inflation Adjustment Act and 
subject to the 10 percent cap imposed by the Debt Collection 
Improvement Act of 1996. Between October 1986 and October 2015, the 
CPI-U has increased by 215.628 percent. The post-adjustment penalty 
amount or range is obtained by multiplying the pre-adjustment penalty 
amount or range by the percent change in the CPI-U over the relevant 
time period, and rounding to the nearest dollar. Therefore, the new, 
post-adjustment maximum penalty under the PFCRA is $5,000 x 2.15628 = 
$10,781.40, which rounds to $10,781. The new, post-adjustment minimum 
penalty under 31 U.S.C. 3729 is $5,000 x 2.15628 = $10,781.40, which 
rounds to $10,781. The new, post-adjustment maximum penalty under 31 
U.S.C. 3729 is $10,000 x 2.15628 = $21,562.80, which rounds to $21,563. 
The new, post-adjustment penalties are less than 250 percent of the 
pre-adjustment penalties, so the limitation on the amount of the 
adjustment is not implicated. Therefore, the maximum penalty under the 
PFRCA for claims or statements made after August 1, 2016 will be 
$10,781, and the minimum and maximum penalties for false claims under 
31 U.S.C. 3729 will be $10,781 and $21,563 respectively.

Subsequent Annual Adjustments

    The 2015 Act also requires agencies to make annual adjustments to 
civil penalty amounts no later than January 15 of each year following 
the initial adjustment described above. The 2015 Act requires that 
these subsequent annual adjustments shall be made ``notwithstanding 
section 553 of title 5, United States Code.'' As noted earlier, this 
provision in the 2015 Act eliminates the requirement for public notice 
or opportunity for public comment prior to the publication of the final 
adjustment.
    For subsequent adjustments made in accordance with the 2015 Act, 
the amount of the adjustment is based on the percent increase between 
the CPI-U for the month of October preceding the date of the adjustment 
and the CPI-U for the October one year prior to the October immediately 
preceding the date of the adjustment. If there is no increase, there is 
no adjustment of civil penalties. Therefore, if the Board adjusts 
penalties in January 2017, the adjustment will be calculated based on 
the percent change between the CPI-U for October 2016 (the October 
immediately preceding the date of adjustment) and October 2015 (the 
October one year prior to October 2016). The Board will publish the 
amount of these annual inflation adjustments in the Federal Register no 
later than January 15 of each year, starting in 2017.

Regulatory Procedures

Executive Order 12866, as Supplemented by Executive Order 13563

    The Board, with the concurrence of the Office of Management and 
Budget, has determined that this is not a significant regulatory action 
under Executive Order 12866, as supplemented by Executive Order 13563. 
Therefore, no regulatory impact analysis is required.

Regulatory Flexibility Act

    The Board certifies that this rule would not have a significant 
economic impact on a substantial number of small entities because it 
affects individuals only. Therefore, a regulatory flexibility analysis 
is not required under the Regulatory Flexibility Act, as amended.

Paperwork Reduction Act

    This interim final rule imposes no reporting or recordkeeping 
requirements subject to OMB clearance.

List of Subjects in 20 CFR Part 356

    Claims, Penalties.

[[Page 26129]]

    For the reasons set out in the preamble, the Railroad Retirement 
Board revises title 20, chapter II, subchapter E, part 356 of the Code 
of Federal Regulations to read as follows:

PART 356--CIVIL MONETARY PENALTY INFLATION ADJUSTMENT

Sec.
356.1 Introduction.
356.2 Penalties under the Program Fraud Civil Remedies Act of 1986.
356.3 False claims.

    Authority:  28 U.S.C. 2461; 31 U.S.C. 3729, 3809.


Sec.  356.1  Introduction.

    (a) The Federal Civil Penalties Inflation Adjustment Act, as 
amended by the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (28 U.S.C. 2461 note), requires that civil 
monetary penalties be adjusted on an annual basis by the percentage by 
which the Consumer Price Index for all Urban Consumers (CPI-U) for the 
month of October preceding the adjustment exceeds the CPI-U for the 
month of October of the calendar year prior to the October preceding 
the adjustment, with final amounts rounded to the nearest dollar. That 
Act also requires a one-time catch up adjustment in the amount of the 
percentage by which the CPI-U for October 2015 exceeds the CPI-U for 
the month of October of the calendar year during which the amount of 
civil monetary penalty was established or adjusted under a provision of 
law other than the Federal Civil Penalties Inflation Adjustment Act.
    (b) Other than adjustments under the Federal Civil Penalties 
Inflation Adjustment Act, the Board last established or adjusted civil 
monetary penalties in 1986. The CPI-U increased by 215.628 percent 
between October 1986 and October 2015.
    (c) Imposition of the increased civil monetary penalties are 
limited to actions occurring after the effective date of the increases.
    (d) The amount of the one-time catch up adjustment may not exceed 
150 percent of the penalty amount or range as of November 2, 2015. The 
ten percent cap on increases imposed by the Debt Collection 
Improvements Act of 1996 was eliminated in the 2015 amendments to the 
Federal Civil Penalties Inflation Adjustment Act, and is no longer 
applicable.


Sec.  356.2  Penalties under the Program Fraud Civil Remedies Act of 
1986.

    (a) For claims or statements made on or before October 23, 1996, 
the maximum penalty which may be assessed under part 355 of this 
chapter is $5,000.
    (b) For claims or statements made after October 23, 1996, but 
before August 1, 2016, the maximum penalty which may be assessed under 
part 355 of this chapter is $5,500.
    (c) For claims or statements made on or after August 1, 2016, but 
before January 1, 2017, the maximum penalty which may be assessed under 
part 355 of this chapter is $10,781.
    (d) For claims or statements made on or after January 1, 2017, the 
maximum penalty which may be assessed under part 355 of this chapter is 
the larger of:
    (1) The amount for the previous calendar year; or
    (2) An amount adjusted for inflation, calculated by multiplying the 
amount for the previous calendar year by the percentage by which the 
CPI-U for the month of October preceding the current calendar year 
exceeds the CPI-U for the month of October of the calendar year two 
years prior to the current calendar year, adding that amount to the 
amount for the previous calendar year, and rounding the total to the 
nearest dollar.
    (e) Notice of the maximum penalty which may be assessed under part 
355 of this chapter for calendar years after 2016 will be published by 
the Board in the Federal Register on an annual basis on or before 
January 15 of each calendar year.


Sec.  356.3  False claims.

    (a) For claims or statements made on or before October 23, 1996, 
the minimum penalty which may be assessed under 31 U.S.C. 3729 is 
$5,000 and the maximum penalty is $10,000.
    (b) For claims or statements made after October 23, 1996, but 
before August 1, 2016, the minimum penalty which may be assessed under 
31 U.S.C. 3729 is $5,500 and the maximum penalty is $11,000.
    (c) For claims or statements made on or after August 1, 2016, but 
before January 1, 2017, the minimum penalty which may be assessed under 
31 U.S.C. 3729 is $10,781 and the maximum penalty is $21,563.
    (d) For claims or statements made on or after January 1, 2017, the 
minimum and maximum penalty amounts which may be assessed under 31 
U.S.C. 3729 is the larger of:
    (1) The amount for the previous calendar year; or
    (2) An amount adjusted for inflation, calculated by multiplying the 
amount for the previous calendar year by the percentage by which the 
CPI-U for the month of October preceding the current calendar year 
exceeds the CPI-U for the month of October of the calendar year two 
years prior to the current calendar year, adding that amount to the 
amount for the previous calendar year, and rounding the total to the 
nearest dollar.
    (e) Notice of the minimum and maximum penalty which may be assessed 
under 31 U.S.C. 3729 for calendar years after 2016 will be published by 
the Board in the Federal Register on an annual basis on or before 
January 15 of each calendar year.

    By Authority of the Board.
Martha P. Rico,
Secretary to the Board.
[FR Doc. 2016-09959 Filed 4-29-16; 8:45 am]
 BILLING CODE P