Inflation Catch-Up Adjustment of Civil Monetary Penalty Amounts, 38931-38936 [2016-14060]
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Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations
Authority: 21 U.S.C. 331, 351, 352, 355,
360b, 360c, 360d, 360h, 360i, 360j, 371, 372,
374, 381.
13. In § 809.10:
a. Add a last sentence to paragraph
(a)(4),
■ b. Add a last sentence to paragraph
(b)(5)(ii), and
■ c. Add paragraph (g).
The additions read as follows:
■
■
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§ 809.10 Labeling for in vitro diagnostic
products.
(a) * * *
(4) * * * The limiting statement
appropriate to the intended use of a
prescription in vitro diagnostic product
shall bear the symbol statement ‘‘Rx
only’’ or ‘‘) only’’ or the statement
‘‘Caution: Federal law restricts this
device to sale by or on the order of
a lll’’, the blank to be filled with the
word ‘‘physician’’, ‘‘dentist’’,
‘‘veterinarian’’, or with the descriptive
designation of any other practitioner
licensed by the law of the State in
which the practitioner practices to use
or order the use of the device.
*
*
*
*
*
(b) * * *
(5) * * *
(ii) * * * The limiting statement
appropriate to the intended use of a
prescription in vitro diagnostic product
shall bear the symbol statement ‘‘Rx
only’’ or ‘‘) only’’ or the statement
‘‘Caution: Federal law restricts this
device to sale by or on the order of
a lll’’, the blank to be filled with the
word ‘‘physician’’, ‘‘dentist’’,
‘‘veterinarian’’, or with the descriptive
designation of any other practitioner
licensed by the law of the State in
which the practitioner practices to use
or order the use of the device.
*
*
*
*
*
(g)(1) The applicant may provide the
labeling information referenced in this
section in the form of:
(i) A symbol accompanied by
explanatory text adjacent to the symbol;
(ii) A symbol not accompanied by
adjacent explanatory text that:
(A) Is contained in a standard that
FDA recognizes under its authority in
section 514(c) of the act;
(B) Is used according to the
specifications for use of the symbol set
forth in FDA’s section 514(c)
recognition; and
(C) Is explained in a paper or
electronic symbols glossary that is
included in the labeling for the device
and the labeling on or within the
package containing the device bears a
prominent and conspicuous statement
identifying the location of the symbols
glossary that is written in English or, in
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the case of articles distributed solely in
Puerto Rico or in a Territory where the
predominant language is one other than
English, the predominant language may
be used;
(iii) A symbol not accompanied by
adjacent explanatory text that:
(A) Is established in a standard
developed by a standards development
organization (SDO);
(B) Is not contained in a standard that
is recognized by FDA under its
authority in section 514(c) of the act or
is contained in a standard that is
recognized by FDA but is not used
according to the specifications for use of
the symbol set forth in FDA’s section
514(c) recognition;
(C) Is determined by the manufacturer
to be likely to be read and understood
by the ordinary individual under
customary conditions of purchase and
use in compliance with section 502(c) of
the act;
(D) Is used according to the
specifications for use of the symbol set
forth in the SDO-developed standard;
and
(E) Is explained in a paper or
electronic symbols glossary that is
included in the labeling for the device
and the labeling on or within the
package containing the device bears a
prominent and conspicuous statement
identifying the location of the symbols
glossary that is written in English or, in
the case of articles distributed solely in
Puerto Rico or in a Territory where the
predominant language is one other than
English, the predominant language may
be used; or
(iv) The symbol statement ‘‘Rx only’’
or ‘‘) only’’ used as provided under
paragraphs (a)(4) and (b)(5)(ii) of this
section.
(2) The use of symbols in device
labeling which do not meet the
requirements of paragraph (g)(1) of this
section renders a device misbranded
under section 502(c) of the act.
(3) For purposes of paragraph (g)(1) of
this section:
(i) An SDO is an organization that is
nationally or internationally recognized
and that follows a process for standard
development that is transparent, (i.e.,
open to public scrutiny), where the
participation is balanced, where an
appeals process is included, where the
standard is not in conflict with any
statute, regulation, or policy under
which FDA operates, and where the
standard is national or international in
scope.
(ii) The term ‘‘symbols glossary’’
means a compiled listing of:
(A) Each SDO-established symbol
used in the labeling for the device;
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38931
(B) The title and designation number
of the SDO-developed standard
containing the symbol;
(C) The title of the symbol and its
reference number, if any, in the
standard; and
(D) The meaning or explanatory text
for the symbol as provided in the FDA
recognition or, if FDA has not
recognized the standard or portion of
the standard in which the symbol is
located or the symbol is not used
according to the specifications for use of
the symbol set forth in FDA’s section
514(c) recognition, the explanatory text
as provided in the standard.
Dated: June 8, 2016.
Leslie Kux,
Associate Commissioner for Policy.
[FR Doc. 2016–13989 Filed 6–14–16; 8:45 am]
BILLING CODE 4164–01–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
24 CFR Parts 28, 30, 87, 180, and 3282
[Docket No. FR–5942–I–01]
RIN 2501–AD79
Inflation Catch-Up Adjustment of Civil
Monetary Penalty Amounts
AGENCY:
Office of the General Counsel,
HUD.
ACTION:
Interim final rule.
This interim final rule
amends HUD’s civil monetary penalty
regulations by making inflation
adjustments as mandated by the Federal
Civil Penalties Inflation Adjustment Act
Improvements Act of 2015. HUD also
removes three obsolete civil monetary
penalty regulations previously
authorized under statutes for which
either HUD no longer has enforcement
authority or the program is no longer
active. Lastly, HUD makes a technical
change to the regulation language
implementing the Program Fraud Civil
Remedies Act which, due to a
typographical error under the last civil
money penalty adjustment, failed to
include language assigning a penalty for
causing a false claim or statement to be
made.
DATES: Effective date: August 16, 2016.
Comment due date: August 15, 2016.
ADDRESSES: Interested persons are
invited to submit comments regarding
this interim final rule. Communications
must refer to the above docket number
and title. There are two methods for
submitting public comments. All
SUMMARY:
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Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations
submissions must refer to the above
docket number and title.
1. Submission of Comments by Mail.
Comments may be submitted by mail to
the Regulations Division, Office of
General Counsel, Department of
Housing and Urban Development, 451
7th Street SW., Room 10276,
Washington, DC 20410–0500.
2. Electronic Submission of
Comments. Interested persons may
submit comments electronically through
the Federal eRulemaking Portal at
www.regulations.gov. HUD strongly
encourages commenters to submit
comments electronically. Electronic
submission of comments allows the
commenter maximum time to prepare
and submit a comment, ensures timely
receipt by HUD, and enables HUD to
make them immediately available to the
public. Comments submitted
electronically through the
www.regulations.gov Web site can be
viewed by other commenters and
interested members of the public.
Commenters should follow the
instructions provided on that site to
submit comments electronically.
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Note: To receive consideration as public
comments, comments must be submitted
through one of the two methods specified
above. Again, all submissions must refer to
the docket number and title of the rule.
No Facsimile Comments. Facsimile
(fax) comments are not acceptable.
Public Inspection of Public
Comments. All properly submitted
comments and communications
submitted to HUD will be available for
public inspection and copying between
8 a.m. and 5 p.m., weekdays, at the
above address. Due to security measures
at the HUD Headquarters building, an
advance appointment to review the
public comments must be scheduled by
calling the Regulations Division at 202–
402–3055 (this is not a toll-free
number). Individuals with speech or
hearing impairments may access this
number via TTY by calling the Federal
Relay Service, toll-free, at 800–877–
8339. Copies of all comments submitted
are available for inspection and
downloading at www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
Dane Narode, Associate General
Counsel, Office of Program
Enforcement, Department of Housing
and Urban Development, 1250
Maryland Avenue SW., Suite 200,
Washington, DC 20024; telephone
Description
False Claims &
Statements.
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number 202–245–4141 (this is not a tollfree number). Hearing- or speechimpaired individuals may access this
number via TTY by calling the toll-free
Federal Information Relay Service at
800–877–8339.
SUPPLEMENTARY INFORMATION:
I. Background
On November 2, 2015, the President
signed into law the Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015 (the 2015
Act), which further amended the
Federal Civil Penalties Inflation
Adjustment Act of 1990 (the Inflation
Adjustment Act), 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.
Previously, the Inflation Adjustment
Act required agencies to adjust CMP
levels every four years based on the
percentage by which the Consumer
Price Index (CPI) for the month of June
of the prior calendar year exceeded the
CPI for the month of June of the
calendar year during which the last
adjustment was made. The Inflation
Adjustment Act also capped the
increase for each adjustment at 10
percent and rounded the adjustment
based on the size of the penalty (e.g.,
multiple of $10 in the case of penalties
less than or equal to $100). The
rounding process meant that penalties
would often not be increased at all if the
inflation factor was not large enough.
Furthermore, the cap on increases of 10
percent in tandem with the rounding
meant that the formula over time caused
penalties to lose value relative to total
inflation. The 2015 Act updates these
requirements by prescribing that
agencies make annual adjustments for
inflation based on the CPI for the month
of October and round to the nearest
dollar after an initial adjustment.
In order to eliminate the inconsistent
changes caused by the prior method, the
2015 Act resets the inflation adjustment
by excluding prior inflationary
adjustments under the Inflation
Adjustment Act, which contributed to a
decline in the real value of penalty
levels. To do this, the 2015 Act provides
Citation
Original amount
Omnibus Budget Reconciliation Act of
1986 (31 U.S.C. 3802(a)(1)).
$5,000 ...................
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that the initial adjustment shall be the
percentage by which the CPI for the
month of October, 2015 exceeds that of
the month of October of the calendar
year during which the amount of the
CMP was originally established or
otherwise adjusted under a provision of
law other than the Inflation Adjustment
Act. While the 2015 Act does not
provide a cap on adjustments going
forward, the initial adjustment under
the 2015 Act does limit large CMP
increases by providing that no initial
adjustments may exceed 150 percent of
the amount of the CMP as of the date the
2015 Act was enacted, November 2,
2015. Lastly, the 2015 Act requires that
agencies publish an interim final rule
with the initial adjustment by July 1,
2016, and have the adjustments take
effect no later than August 1, 2016. The
initial adjustment under the 2015 Act
also provides that, following public
comment, the head of an agency may
reduce the required increase if the
agency head determines that the
increase will have a negative economic
impact or the social costs of the increase
outweigh the benefits; and the Director
of the Office of Management and Budget
concurs.
II. This Interim Final Rule
A. Inflation Adjustment of Civil
Monetary Penalty Amounts
For each component, HUD provides a
table showing how the penalties are
being increased pursuant to the 2015
Act. In the first column, HUD provides
a description of the penalty. In the
second column (‘‘Citation,’’) HUD
provides the United States Code (U.S.C.)
statutory citation providing for the
penalty. In the third column (‘‘Original
Amount’’), HUD provides the amount of
the penalty as originally enacted by
Congress or changed through a
mechanism other than pursuant to the
Inflation Adjustment Act. In the fourth
column (‘‘Regulatory Citation’’), HUD
lists the regulatory citation in the
current Code of Federal Regulations
(CFR) where the most recently amended
penalty is codified. In the fifth column
(‘‘Current Amount’’), HUD lists the
existing penalty in the CFR. In the sixth
column, (‘‘New Amount’’) HUD lists the
penalty after disregarding adjustments
under the Inflation Adjustment Act and
applying the 2015 Act formula and cap
for the first adjustment.
Regulatory
citation
§ 28.10
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Current amount
$8,500 ...................
15JNR1
New amount
$10,781.
Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations
Regulatory
citation
Description
Citation
Original amount
Advance Disclosure
of Funding.
Disclosure of Subsidy Layering.
FHA Mortgagees
and Lenders Violations.
Other FHA Participants Violations.
Department of Housing and Urban Development Act (42 U.S.C. 3537a(c)).
Department of Housing and Urban Development Act (42 U.S.C. 3545(f)).
HUD Reform Act of 1989 (12 U.S.C.
1735f–14(a)(2)).
$10,000 .................
§ 30.20
$16,000 .................
$18,936.
$10,000 .................
§ 30.25
$16,000 .................
$18,936.
§ 30.35
Indian Loan Mortgagees Violations.
Housing Community Development Act
of 1992 1 (12 U.S.C. 1715z–
13a(g)(2)).
HUD Reform Act of 1989 (12 U.S.C.
1735f–15(c)(2)).
Per Violation:
$5,000 Per Year:
$1,000,000.
Per Violation:
$5,000 Per Year:
$1,000,000.
Per Violation:
$5,000 Per Year:
$1,000,000.
$25,000 .................
Per Violation:
$8,500 Per Year:
$1,525,000.
Per Violation:
$7,050 Per Year:
$1,335,000.
Per Violation:
$8,000 Per Year:
$1,525,000.
$42,500 .................
Per Violation:
$9,468 Per Year:
$1,893,610.
Per Violation:
$9,468 Per Year:
$1,893,610.
Per Violation:
$9,468 Per Year:
$1,893,610.
$47,340.
Per Violation:
$5,000 Per Year:
$1,000,000.
Per Violation:
$5,000 Per Year:
$1,000,000.
$10,000 .................
§ 30.50
§ 30.65
Per Violation:
$8,500 Per Year:
$1,525,000.
Per Violation:
$8,500 Per Year:
$1,525,000.
$16,000 .................
Per Violation:
$9,468 Per Year:
$1,893,610.
Per Violation:
$9,468 Per Year:
$1,893,610.
$16,773.
$25,000 .................
§ 30.68
$27,500 .................
$36,794.
Min: $10,000 Max:
$100,000.
No Priors: $10,000
One Prior:
$25,000 Two or
More Priors:
$50,000.
Per Violation:
$1,000 Per Year:
$1,000,000.
§ 87.400
Min: $10,000 Max:
$100,000.
No Priors: $16,000
One Prior:
$42,500 Two or
More Priors:
$70,000.
Per Violation:
$1,100 Per Year:
$1,375,000.
Min: $18,936 Max:
$189,361.
No Priors: $19,787
One Prior:
$49,467 Two or
More Priors:
$98,935.
Per Violation:
$2,750 Per Year:
$3,437,500.
HUD Reform Act of 1989 (12 U.S.C.
1735f–14(a)(2)).
Multifamily & Section 202 or 811
Owners Violations.
Ginnie Mae Issuers
HUD Reform Act of 1989 (12 U.S.C.
& Custodians Vio1723i(b)).
lations.
Title I Broker &
HUD Reform Act of 1989 (12 U.S.C.
Dealers Violations.
1703).
Lead Disclosure
Violation.
Section 8 Owners
Violations.
Lobbying Violation ..
Fair Housing Act
Civil Penalties.
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Manufactured Housing Regulations
Violation.
Title X-Residential Lead-Based Paint
Hazard Reduction Act of 1992 (42
U.S.C. 4852d(b)(1)).
Multifamily Assisted Housing Reform
and Affordability Act of 1997 (42
U.S.C. 1437z–1(b)(2)).
The Lobbying Disclosure Act of 1995
(31 U.S.C. 1352).
Fair Housing Amendments Act of 1988
(42 U.S.C. 3612(g)(3)).
Housing Community Development Act
of 1974 (42 U.S.C. 5410).
B. Correction to 24 CFR 28.10
In addition to applying the catch-up
adjustment as required by the 2015 Act,
HUD takes the opportunity to issue a
technical correction to § 28.10. On
January 18, 2013, HUD published a final
rule (78 FR 4059) to apply a routine
inflationary adjustment to CMPs under
§ 28.10, the regulation implementing the
Program Fraud Civil Remedies Act, 31
U.S.C. 3802. Due to a typographical
error, the final rule assigned a penalty
for making a false claim or statement,
but not for causing such claim or
statement to be made. Liability is
provided for both bases under 31 U.S.C.
3802, as well as under the version of
§ 28.10 that predated the 2013
rulemaking (See 73 FR 76831, Dec. 17,
2008), and the 2013 final rule was
intended only to adjust the penalty
amount, not to remove a basis for
liability. As such, the bases for liability
1 The Housing Community Development Act of
1992 (12 U.S.C. 1715z–13a(g)(2) incorporated the
civil money penalties from section 536 of the HUD
Reform Act of 1989 (12 U.S.C. 1715f–14), and thus
the year applied for purposes of the 2015 Act
adjustment is 1989.
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§ 30.36
§ 30.40
§ 30.45
§ 30.60
§ 180.671(a)
§ 3282.10
enumerated in § 28.10 are incomplete.
Through this technical correction, HUD
can ensure § 28.10 fully implements the
statutory requirements of 31 U.S.C.
3802. Accordingly, HUD amends
§§ 28.10(a), (b), and (c) to reflect
statutory liability for causing a false
claim or statement to be made, as
originally intended.
C. Removal of 24 CFR 30.30, 30.55, and
30.69
HUD also takes the opportunity to
remove from title 24 of the CFR two
outdated regulations for which HUD no
longer has statutory enforcement
authority, and one regulation for which
the HUD program was repealed.
Section 30.30 implements CMPs for
violations under the Urban
Homesteading Program, which was
administered by HUD’s Office of
Community Planning and Development
and ceased operation due to repeal of 12
U.S.C. 1706e on October 1, 1991.
Subsequently, HUD removed its Urban
Homesteading regulation at 24 CFR part
590 (79 FR 51894, Sept. 2, 2014) but
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38933
New amount
inadvertently retained § 30.30, which is
now obsolete.
Sections 30.55 and 30.69 implement
CMPs for violations under the Secure
and Fair Enforcement for Mortgage
Licensing Act of 2008 (SAFE Act) (12
U.S.C. 5101 et seq.) and the Interstate
Land Sales Full Disclosure Act
(ILSFDA) (15 U.S.C. 1701 et seq.),
respectively. In 2011, the Dodd-Frank
Act 2 transferred from HUD to the
Consumer Financial Protection Bureau
(CFPB) all of its prior authority to
administer, enforce, and otherwise
implement the SAFE Act and ILSFDA.
Accordingly, HUD issued regulations
removing 24 CFR part 3400, its SAFE
Act regulation (79 FR 34225, June 16,
2014), and removed 24 CFR parts 1710,
1715, and 1720, its ILSFDA regulations
(79 FR 34225, June 16, 2014).
Subsequently, CFPB issued its own
regulations for these statutes.3 In the
process of updating its regulations, HUD
2 Public Law 111–203, 124 Stat. 1376, approved
July 21, 2010.
3 See 12 CFR parts 1007 and 1008 for the SAFE
Act, and 12 CFR part 1024 for ILSFDA.
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inadvertently retained §§ 30.55 and
30.69, which are now obsolete.
HUD is now removing §§ 30.30, 30.55,
and 30.69 from title 24 of the CFR, as
originally intended. The removal of
these regulations will streamline HUD’s
regulations and eliminate confusion
regarding the status of these programs.
II. Justification for Interim Final
Rulemaking
HUD generally publishes rules for
advance public comment in accordance
with its rule on rulemaking at 24 CFR
part 10. However, under 24 CFR 10.1,
HUD may omit prior public notice and
comment if it is ‘‘impracticable,
unnecessary, or contrary to the public
interest.’’ In this instance, HUD has
determined that it is unnecessary to
delay the effectiveness of this rule for
advance public comment.
This interim final rule follows the
statutory directive in the 2015 Act
requiring a catch-up adjustment to
HUD’s CMPs by applying the
adjustment formula established in the
statute and publishing an interim final
rule. Accordingly, because calculation
of the adjustment is formula-driven,
HUD has limited discretion in updating
its regulations to reflect the new penalty
levels derived from application of the
formula. HUD emphasizes that this rule
addresses only the matter of the
calculation of the maximum civil
monetary penalties for the respective
violations described in the regulations.
This rule does not address the issue of
the Secretary’s discretion to impose or
not to impose a penalty, nor the
procedures that HUD must follow in
initiating a civil monetary penalty
action, or in seeking a civil penalty in
a Fair Housing Act case.
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III. Effective Date
Section 7 of the Department of
Housing and Urban Development Act,
42 U.S.C. 3535, paragraph (o), requires
that ‘‘any regulation implementing any
provision of the Department of Housing
and Urban Development Reform Act of
1989 that authorizes the imposition of a
civil money penalty may not become
effective until after the expiration of a
public comment period of not less than
60 days.’’ Therefore, HUD delays the
effective date to August 16, 2016, which
provides for the required 60 days of
public comment and compliance with
the 2015 Act’s statutory deadline of
August 1, 2016. These new penalties
apply to violations occurring after
August 16, 2016.
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IV. Findings and Certifications
Regulatory Review—Executive Orders
12866 and 13563
Under Executive Order 12866
(Regulatory Planning and Review), a
determination must be made whether a
regulatory action is significant and
therefore, subject to review by the Office
of Management and Budget (OMB) in
accordance with the requirements of the
order. Executive Order 13563
(Improving Regulations and Regulatory
Review) directs executive agencies to
analyze regulations that are ‘‘outmoded,
ineffective, insufficient, or excessively
burdensome, and to modify, streamline,
expand, or repeal them in accordance
with what has been learned.’’ Executive
Order 13563 also directs that, where
relevant, feasible, and consistent with
regulatory objectives, and to the extent
permitted by law, agencies are to
identify and consider regulatory
approaches that reduce burdens and
maintain flexibility and freedom of
choice for the public. As discussed
above in this preamble, this interim
final rule revises the civil monetary
penalty regulations to make inflation
adjustments required by the 2015 Act. It
also provides a technical correction to
24 CFR part 28 to harmonize it with its
authorizing statute and removes
obsolete rules from the Code of Federal
Regulations. This interim final rule is
consistent with the goals of Executive
Order 13563, to reduce regulatory
burdens by modifying and removing
ineffective or outmoded regulations.
As a result of this review, OMB
determined that this rule was not
significant under Executive Order 12866
and Executive Order 13563.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5
U.S.C. 601 et seq.) generally requires an
agency to conduct a regulatory
flexibility analysis of any rule subject to
notice and comment rulemaking
requirements, unless the agency certifies
that the rule will not have a significant
economic impact on a substantial
number of small entities. Because HUD
has determined that good cause exists to
issue this rule without prior public
comment, this rule is not subject to the
requirement to publish an initial or final
regulatory flexibility analysis under the
RFA as part of such action.
Unfunded Mandates Reform
Section 202 of the Unfunded
Mandates Reform Act of 1995 (UMRA) 4
requires that an agency prepare a
budgetary impact statement before
42
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promulgating a rule that includes a
Federal mandate that may result in the
expenditure by state, local, and tribal
governments, in the aggregate, or by the
private sector, of $100 million or more
in any one year. If a budgetary impact
statement is required, section 205 of
UMRA also requires an agency to
identity and consider a reasonable
number of regulatory alternatives before
promulgating a rule.5 However, the
UMRA applies only to rules for which
an agency publishes a general notice of
proposed rulemaking. As discussed
above, HUD has determined, for good
cause, that prior notice and public
comment is not required on this rule
and, therefore, the UMRA does not
apply to this interim final rule.
Executive Order 13132, Federalism
Executive Order 13132 (entitled
‘‘Federalism’’) prohibits an agency from
publishing any rule that has federalism
implications if the rule either imposes
substantial direct compliance costs on
state and local governments and is not
required by statute, or the rule preempts
state law, unless the agency meets the
consultation and funding requirements
of section 6 of the Executive Order. This
rule will not have federalism
implications and would not impose
substantial direct compliance costs on
state and local governments or preempt
state law within the meaning of the
Executive Order.
Environmental Review
This interim final rule does not direct,
provide for assistance or loan and
mortgage insurance for, or otherwise
govern, or regulate, real property
acquisition, disposition, leasing,
rehabilitation, alteration, demolition, or
new construction, or establish, revise or
provide for standards for construction or
construction materials, manufactured
housing, or occupancy. Accordingly,
under 24 CFR 50.19(c)(1), this final rule
is categorically excluded from
environmental review under the
National Environmental Policy Act of
1969 (42 U.S.C. 4321).
List of Subjects
24 CFR Part 28
Administrative practice and
procedure, Claims, Fraud, Penalties.
24 CFR Part 30
Administrative practice and
procedure, Grant programs—housing
and community development, Loan
programs—housing and community
development, Mortgage insurance,
Penalties.
52
Sfmt 4700
U.S.C. 1534.
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24 CFR Part 87
Government contracts, Grant
programs, Loan programs, Lobbying,
Penalties, Reporting and recordkeeping
requirements.
24 CFR Part 180
Administrative practice and
procedure, Aged, Civil rights, Fair
housing, Individuals with disabilities,
Investigations, Mortgages, Penalties,
Reporting and recordkeeping
requirements.
Administrative practice and
procedure, Consumer protection,
Intergovernmental relations,
Manufactured homes, Reporting and
recordkeeping requirements.
Accordingly, for the reasons described
in the preamble, HUD amends 24 CFR
parts 28, 30, 87, 180, and 3282 as
follows:
PART 28—IMPLEMENTATION OF THE
PROGRAM FRAUD CIVIL REMEDIES
ACT OF 1986
1. The authority citation for part 28 is
revised to read as follows:
■
Authority: 28 U.S.C. 2461 note; 31 U.S.C.
3801–3812; 42 U.S.C. 3535(d).
2. In § 28.10, revise paragraphs (a)(1)
introductory text and (b)(1) introductory
text and the first sentence in paragraph
(c) to read as follows:
■
ehiers on DSK5VPTVN1PROD with RULES
§ 28.10 Basis for civil penalties and
assessments.
(a) * * *
(1) A civil penalty of not more than
$10,781 may be imposed upon any
person who makes, presents, or submits,
or causes to be made, presented, or
submitted, a claim that the person
knows or has reason to know:
*
*
*
*
*
(b) * * *
(1) A civil penalty of not more than
$10,781 may be imposed upon any
person who makes, presents, or submits,
or causes to be made, presented, or
submitted, a written statement that:
*
*
*
*
*
(c) Limit on liability. If the claim or
statement relates to low-income housing
benefits or housing benefits for the
elderly or handicapped, then a person
may be held liable only if he or she has
made or caused to be made the claim or
statement in the course of applying for
such benefits, with respect to his or her
eligibility, or family’s eligibility, to
receive such benefits. * * *
*
*
*
*
*
14:36 Jun 14, 2016
3. The authority citation for part 30 is
revised to read as follows:
■
Authority: 12 U.S.C. 1701q–1, 1703, 1723i,
1735f–14, and 1735f–15; 15 U.S.C. 1717a; 28
U.S.C. 1 note and 2461 note; 42 U.S.C.
1437z–1 and 3535(d).
4. In § 30.20, revise paragraph (b) to
read as follows:
■
§ 30.20 Ethical violations by HUD
employees.
*
24 CFR Part 3282
VerDate Sep<11>2014
PART 30—CIVIL MONEY PENALTIES:
CERTAIN PROHIBITED CONDUCT
Jkt 238001
*
*
*
*
(b) Maximum penalty. The maximum
penalty is $18,936 for each violation.
■ 5. In § 30.25, revise paragraph (b) to
read as follows:
§ 30.25 Violations by applicants for
assistance.
*
*
*
*
*
(b) Maximum penalty. The maximum
penalty is $18,936 for each violation.
§ 30.30
[Removed]
6. Remove § 30.30.
■ 7. In § 30.35, revise the first sentence
in paragraph (c)(1) to read as follows:
■
§ 30.35
Mortgagees and lenders.
*
*
*
*
*
(c)(1) Amount of penalty. The
maximum penalty is $9,468 for each
violation, up to a limit of $1,893,610 for
all violations committed during any
one-year period. * * *
*
*
*
*
*
■ 8. In § 30.36, revise the first sentence
in paragraph (c) to read as follows:
§ 30.36 Other participants in FHA
programs.
*
*
*
*
*
(c) Amount of penalty. The maximum
penalty is $9,468 for each violation, up
to a limit of $1,893,610 for all violations
committed during any one-year period.
* * *
■ 9. In § 30.40, revise the first sentence
in paragraph (c) to read as follows:
§ 30.40 Loan guarantees for Indian
housing.
*
*
*
*
*
(c) Amount of penalty. The maximum
penalty is $9,468 for each violation, up
to a limit of $1,893,610 for all violations
committed during any one-year period.
* * *
■ 10. In § 30.45, revise paragraph (g) to
read as follows:
§ 30.45 Multifamily and section 202 or 811
mortgagors.
*
*
*
*
*
(g) Maximum penalty. The maximum
penalty for each violation under
PO 00000
Frm 00055
Fmt 4700
Sfmt 4700
38935
paragraphs (c) and (f) of this section is
$47,340.
*
*
*
*
*
■ 11. In § 30.50, revise the first sentence
in paragraph (c) to read as follows:
§ 30.50
GNMA issuers and custodians.
*
*
*
*
*
(c) Amount of penalty. The maximum
penalty is $9,468 for each violation, up
to a limit of $1,893,610 during any oneyear period. * * *
§ 30.55
[Removed]
12. Remove § 30.55.
■ 13. In § 30.60, revise paragraph (c) to
read as follows:
■
§ 30.60 Dealers or sponsored third-party
originators.
*
*
*
*
*
(c) Amount of penalty. The maximum
penalty is $9,468 for each violation, up
to a limit for any particular person of
$1,893,610 during any one-year period.
■ 14. In § 30.65, revise paragraph (b) to
read as follows:
§ 30.65 Failure to disclose lead-based
paint hazards.
*
*
*
*
*
(b) Amount of penalty. The maximum
penalty is $16,773 for each violation.
■ 15. In § 30.68, revise paragraph (c) to
read as follows:
§ 30.68
Section 8 owners.
*
*
*
*
*
(c) Maximum penalty. The maximum
penalty for each violation under this
section is $36,794.
*
*
*
*
*
§ 30.69
■
[Removed]
16. Remove § 30.69.
PART 87—NEW RESTRICTIONS ON
LOBBYING
17. The authority citation for part 87
is revised to read as follows:
■
Authority: 28 U.S.C. 1 note; 31 U.S.C.
1352; 42 U.S.C. 3535(d).
18. In § 87.400, revise paragraphs (a),
(b), and (e) to read as follows:
■
§ 87.400
Penalties.
(a) Any person who makes an
expenditure prohibited herein shall be
subject to a civil penalty of not less than
$18,936 and not more than $189,361 for
each such expenditure.
(b) Any person who fails to file or
amend the disclosure form (see
appendix B) to be filed or amended if
required herein, shall be subject to a
civil penalty of not less than $18,936
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Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations
and not more than $189,361 for each
such failure.
*
*
*
*
*
(e) First offenders under paragraph (a)
or (b) of this section shall be subject to
a civil penalty of $18,936, absent
aggravating circumstances. Second and
subsequent offenses by persons shall be
subject to an appropriate civil penalty
between $18,936 and $189,361, as
determined by the agency head or his or
her designee.
*
*
*
*
*
PART 180—CONSOLIDATED HUD
HEARING PROCEDURES FOR CIVIL
RIGHTS MATTERS
19. The authority citation for part 180
is revised to read as follows:
■
Authority: 28 U.S.C. 1 note; 29 U.S.C. 794;
42 U.S.C. 2000d–1, 3535(d), 3601–3619,
5301–5320, and 6103.
20. In § 180.671, revise paragraphs
(a)(1) through (3) to read as follows:
■
ehiers on DSK5VPTVN1PROD with RULES
§ 180.671 Assessing civil penalties for Fair
Housing Act cases.
(a) * * *
(1) $19,787, if the respondent has not
been adjudged in any administrative
hearing or civil action permitted under
the Fair Housing Act or any state or
local fair housing law, or in any
licensing or regulatory proceeding
conducted by a federal, state, or local
governmental agency, to have
committed any prior discriminatory
housing practice.
(2) $49,467, if the respondent has
been adjudged in any administrative
hearing or civil action permitted under
the Fair Housing Act, or under any state
or local fair housing law, or in any
licensing or regulatory proceeding
conducted by a federal, state, or local
government agency, to have committed
one other discriminatory housing
practice and the adjudication was made
during the 5-year period preceding the
date of filing of the charge.
(3) $98,935, if the respondent has
been adjudged in any administrative
hearings or civil actions permitted
under the Fair Housing Act, or under
any state or local fair housing law, or in
any licensing or regulatory proceeding
conducted by a federal, state, or local
government agency, to have committed
two or more discriminatory housing
practices and the adjudications were
made during the 7-year period
preceding the date of filing of the
charge.
*
*
*
*
*
VerDate Sep<11>2014
14:36 Jun 14, 2016
Jkt 238001
PART 3282—MANUFACTURED HOME
PROCEDURAL AND ENFORCEMENT
REGULATIONS
21. The authority citation for part
3282 is revised to read as follows:
■
Authority: 28 U.S.C. 1 note; 28 U.S.C. 2461
note; 42 U.S.C. 3535(d) and 5424.
22. Revise § 3282.10 to read as
follows:
■
§ 3282.10
Civil and criminal penalties.
Failure to comply with these
regulations may subject the party in
question to the civil and criminal
penalties provided for in section 611 of
the Act, 42 U.S.C. 5410. The maximum
amount of penalties imposed under
section 611 of the Act shall be $2,750
for each violation, up to a maximum of
$3,437,500 for any related series of
violations occurring within one year
from the date of the first violation.
Dated: May 20, 2016.
Helen R. Kanovsky,
General Counsel.
[FR Doc. 2016–14060 Filed 6–14–16; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF JUSTICE
28 CFR Part 104
[Docket No. CIV 151]
RIN 1105–AB49
James Zadroga 9/11 Victim
Compensation Fund Reauthorization
Act
Department of Justice.
Interim final rule.
AGENCY:
ACTION:
On December 18, 2015,
President Obama signed into law the
James Zadroga 9/11 Victim
Compensation Fund Reauthorization
Act (the ‘‘Reauthorized Zadroga Act’’).
The Act extends the September 11th
Victim Compensation Fund of 2001
which provides compensation to any
individual (or a personal representative
of a deceased individual) who suffered
physical harm or was killed as a result
of the terrorist-related aircraft crashes of
September 11, 2001, or the rescue and
recovery efforts during the immediate
aftermath of such crashes or the debris
removal efforts that took place in the
immediate aftermath of those crashes.
Special Master Sheila L. Birnbaum,
appointed by the Attorney General to
administer the Fund, is issuing this
Interim Final Rule to address changes
required by the Reauthorized Zadroga
Act. Specifically, the statute extends the
time period during which eligible
SUMMARY:
PO 00000
Frm 00056
Fmt 4700
Sfmt 4700
claimants may submit claims for
compensation until December 18, 2020,
increases the Victim Compensation
Fund’s total funding available to pay
claims, creates different categories of
claims, directs the Victim Compensation
Fund to issue full compensation to
eligible claimants and imposes
limitations on certain components of
future loss calculations.
DATES: Effective date: This rule is
effective June 15, 2016. Comment date:
Written comments must be submitted
on or before July 15, 2016. Comments
received by mail will be considered
timely if they are postmarked on or
before that date. The electronic Federal
Docket Management System (FDMS)
will accept comments until midnight
Eastern Time at the end of that day.
ADDRESSES: Please address all
comments regarding this rule by U.S.
mail to: Jordana Feldman, September
11th Victim Compensation Fund, Civil
Division, U.S. Department of Justice,
290 Broadway, Suite 1300, New York,
New York 10007. To ensure proper
handling, please reference CIV Docket
No. 151 on your correspondence.
Comments may also be sent
electronically through https://
regulations.gov using the electronic
comment form provided on that site. An
electronic copy of this document is also
available at the https://regulations.gov
Web site. The Civil Division will accept
attachments to electronic comments in
Microsoft Word, WordPerfect, or Adobe
PDF formats only.
FOR FURTHER INFORMATION CONTACT:
Catherine V. Emerson, Director, Office
of Management Programs, Civil
Division, U.S. Department of Justice,
Main Building, Room 3140, 950
Pennsylvania Avenue NW., Washington,
DC 20530, telephone 855–885–1555
(TTY 855–885–1558).
SUPPLEMENTARY INFORMATION:
Public Comments
The Department is publishing this
interim final rule, effective on June 15,
2016, the statutory deadline for
updating the existing regulations in
light of the statutory changes made by
the Reauthorized Zadroga Act.
The Department is providing a 30-day
period for public comment. The
regulatory text of this rule is restating all
of the provisions of 28 CFR part 104, as
revised, for ease of reference and
application for the filing of claims.
Commenters should be aware, though,
that only certain portions of the existing
regulations are being revised at this
time, and the Department is only
soliciting public comments on the
changes being made from the existing
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]]>Agencies
[Federal Register Volume 81, Number 115 (Wednesday, June 15, 2016)]
[Rules and Regulations]
[Pages 38931-38936]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14060]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Parts 28, 30, 87, 180, and 3282
[Docket No. FR-5942-I-01]
RIN 2501-AD79
Inflation Catch-Up Adjustment of Civil Monetary Penalty Amounts
AGENCY: Office of the General Counsel, HUD.
ACTION: Interim final rule.
-----------------------------------------------------------------------
SUMMARY: This interim final rule amends HUD's civil monetary penalty
regulations by making inflation adjustments as mandated by the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015. HUD
also removes three obsolete civil monetary penalty regulations
previously authorized under statutes for which either HUD no longer has
enforcement authority or the program is no longer active. Lastly, HUD
makes a technical change to the regulation language implementing the
Program Fraud Civil Remedies Act which, due to a typographical error
under the last civil money penalty adjustment, failed to include
language assigning a penalty for causing a false claim or statement to
be made.
DATES: Effective date: August 16, 2016. Comment due date: August 15,
2016.
ADDRESSES: Interested persons are invited to submit comments regarding
this interim final rule. Communications must refer to the above docket
number and title. There are two methods for submitting public comments.
All
[[Page 38932]]
submissions must refer to the above docket number and title.
1. Submission of Comments by Mail. Comments may be submitted by
mail to the Regulations Division, Office of General Counsel, Department
of Housing and Urban Development, 451 7th Street SW., Room 10276,
Washington, DC 20410-0500.
2. Electronic Submission of Comments. Interested persons may submit
comments electronically through the Federal eRulemaking Portal at
www.regulations.gov. HUD strongly encourages commenters to submit
comments electronically. Electronic submission of comments allows the
commenter maximum time to prepare and submit a comment, ensures timely
receipt by HUD, and enables HUD to make them immediately available to
the public. Comments submitted electronically through the
www.regulations.gov Web site can be viewed by other commenters and
interested members of the public. Commenters should follow the
instructions provided on that site to submit comments electronically.
Note: To receive consideration as public comments, comments must
be submitted through one of the two methods specified above. Again,
all submissions must refer to the docket number and title of the
rule.
No Facsimile Comments. Facsimile (fax) comments are not acceptable.
Public Inspection of Public Comments. All properly submitted
comments and communications submitted to HUD will be available for
public inspection and copying between 8 a.m. and 5 p.m., weekdays, at
the above address. Due to security measures at the HUD Headquarters
building, an advance appointment to review the public comments must be
scheduled by calling the Regulations Division at 202-402-3055 (this is
not a toll-free number). Individuals with speech or hearing impairments
may access this number via TTY by calling the Federal Relay Service,
toll-free, at 800-877-8339. Copies of all comments submitted are
available for inspection and downloading at www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Dane Narode, Associate General
Counsel, Office of Program Enforcement, Department of Housing and Urban
Development, 1250 Maryland Avenue SW., Suite 200, Washington, DC 20024;
telephone number 202-245-4141 (this is not a toll-free number).
Hearing- or speech-impaired individuals may access this number via TTY
by calling the toll-free Federal Information Relay Service at 800-877-
8339.
SUPPLEMENTARY INFORMATION:
I. Background
On November 2, 2015, the President signed into law the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (the
2015 Act), which further amended the Federal Civil Penalties Inflation
Adjustment Act of 1990 (the Inflation Adjustment Act), 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.
Previously, the Inflation Adjustment Act required agencies to
adjust CMP levels every four years based on the percentage by which the
Consumer Price Index (CPI) for the month of June of the prior calendar
year exceeded the CPI for the month of June of the calendar year during
which the last adjustment was made. The Inflation Adjustment Act also
capped the increase for each adjustment at 10 percent and rounded the
adjustment based on the size of the penalty (e.g., multiple of $10 in
the case of penalties less than or equal to $100). The rounding process
meant that penalties would often not be increased at all if the
inflation factor was not large enough. Furthermore, the cap on
increases of 10 percent in tandem with the rounding meant that the
formula over time caused penalties to lose value relative to total
inflation. The 2015 Act updates these requirements by prescribing that
agencies make annual adjustments for inflation based on the CPI for the
month of October and round to the nearest dollar after an initial
adjustment.
In order to eliminate the inconsistent changes caused by the prior
method, the 2015 Act resets the inflation adjustment by excluding prior
inflationary adjustments under the Inflation Adjustment Act, which
contributed to a decline in the real value of penalty levels. To do
this, the 2015 Act provides that the initial adjustment shall be the
percentage by which the CPI for the month of October, 2015 exceeds that
of the month of October of the calendar year during which the amount of
the CMP was originally established or otherwise adjusted under a
provision of law other than the Inflation Adjustment Act. While the
2015 Act does not provide a cap on adjustments going forward, the
initial adjustment under the 2015 Act does limit large CMP increases by
providing that no initial adjustments may exceed 150 percent of the
amount of the CMP as of the date the 2015 Act was enacted, November 2,
2015. Lastly, the 2015 Act requires that agencies publish an interim
final rule with the initial adjustment by July 1, 2016, and have the
adjustments take effect no later than August 1, 2016. The initial
adjustment under the 2015 Act also provides that, following public
comment, the head of an agency may reduce the required increase if the
agency head determines that the increase will have a negative economic
impact or the social costs of the increase outweigh the benefits; and
the Director of the Office of Management and Budget concurs.
II. This Interim Final Rule
A. Inflation Adjustment of Civil Monetary Penalty Amounts
For each component, HUD provides a table showing how the penalties
are being increased pursuant to the 2015 Act. In the first column, HUD
provides a description of the penalty. In the second column
(``Citation,'') HUD provides the United States Code (U.S.C.) statutory
citation providing for the penalty. In the third column (``Original
Amount''), HUD provides the amount of the penalty as originally enacted
by Congress or changed through a mechanism other than pursuant to the
Inflation Adjustment Act. In the fourth column (``Regulatory
Citation''), HUD lists the regulatory citation in the current Code of
Federal Regulations (CFR) where the most recently amended penalty is
codified. In the fifth column (``Current Amount''), HUD lists the
existing penalty in the CFR. In the sixth column, (``New Amount'') HUD
lists the penalty after disregarding adjustments under the Inflation
Adjustment Act and applying the 2015 Act formula and cap for the first
adjustment.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regulatory
Description Citation Original amount citation Current amount New amount
--------------------------------------------------------------------------------------------------------------------------------------------------------
False Claims & Statements.......... Omnibus Budget $5,000................ Sec. 28.10 $8,500................ $10,781.
Reconciliation Act of 1986
(31 U.S.C. 3802(a)(1)).
[[Page 38933]]
Advance Disclosure of Funding...... Department of Housing and $10,000............... Sec. 30.20 $16,000............... $18,936.
Urban Development Act (42
U.S.C. 3537a(c)).
Disclosure of Subsidy Layering..... Department of Housing and $10,000............... Sec. 30.25 $16,000............... $18,936.
Urban Development Act (42
U.S.C. 3545(f)).
FHA Mortgagees and Lenders HUD Reform Act of 1989 (12 Per Violation: $5,000 Sec. 30.35 Per Violation: $8,500 Per Violation: $9,468
Violations. U.S.C. 1735f-14(a)(2)). Per Year: $1,000,000. Per Year: $1,525,000. Per Year: $1,893,610.
Other FHA Participants Violations.. HUD Reform Act of 1989 (12 Per Violation: $5,000 Sec. 30.36 Per Violation: $7,050 Per Violation: $9,468
U.S.C. 1735f-14(a)(2)). Per Year: $1,000,000. Per Year: $1,335,000. Per Year: $1,893,610.
Indian Loan Mortgagees Violations.. Housing Community Per Violation: $5,000 Sec. 30.40 Per Violation: $8,000 Per Violation: $9,468
Development Act of 1992 Per Year: $1,000,000. Per Year: $1,525,000. Per Year: $1,893,610.
\1\ (12 U.S.C. 1715z-
13a(g)(2)).
Multifamily & Section 202 or 811 HUD Reform Act of 1989 (12 $25,000............... Sec. 30.45 $42,500............... $47,340.
Owners Violations. U.S.C. 1735f-15(c)(2)).
Ginnie Mae Issuers & Custodians HUD Reform Act of 1989 (12 Per Violation: $5,000 Sec. 30.50 Per Violation: $8,500 Per Violation: $9,468
Violations. U.S.C. 1723i(b)). Per Year: $1,000,000. Per Year: $1,525,000. Per Year: $1,893,610.
Title I Broker & Dealers Violations HUD Reform Act of 1989 (12 Per Violation: $5,000 Sec. 30.60 Per Violation: $8,500 Per Violation: $9,468
U.S.C. 1703). Per Year: $1,000,000. Per Year: $1,525,000. Per Year: $1,893,610.
Lead Disclosure Violation.......... Title X-Residential Lead- $10,000............... Sec. 30.65 $16,000............... $16,773.
Based Paint Hazard
Reduction Act of 1992 (42
U.S.C. 4852d(b)(1)).
Section 8 Owners Violations........ Multifamily Assisted $25,000............... Sec. 30.68 $27,500............... $36,794.
Housing Reform and
Affordability Act of 1997
(42 U.S.C. 1437z-1(b)(2)).
Lobbying Violation................. The Lobbying Disclosure Act Min: $10,000 Max: Sec. 87.400 Min: $10,000 Max: Min: $18,936 Max:
of 1995 (31 U.S.C. 1352). $100,000. $100,000. $189,361.
Fair Housing Act Civil Penalties... Fair Housing Amendments Act No Priors: $10,000 One Sec. No Priors: $16,000 One No Priors: $19,787 One
of 1988 (42 U.S.C. Prior: $25,000 Two or 180.671(a) Prior: $42,500 Two or Prior: $49,467 Two or
3612(g)(3)). More Priors: $50,000. More Priors: $70,000. More Priors: $98,935.
Manufactured Housing Regulations Housing Community Per Violation: $1,000 Sec. 3282.10 Per Violation: $1,100 Per Violation: $2,750
Violation. Development Act of 1974 Per Year: $1,000,000. Per Year: $1,375,000. Per Year: $3,437,500.
(42 U.S.C. 5410).
--------------------------------------------------------------------------------------------------------------------------------------------------------
B. Correction to 24 CFR 28.10
In addition to applying the catch-up adjustment as required by the
2015 Act, HUD takes the opportunity to issue a technical correction to
Sec. 28.10. On January 18, 2013, HUD published a final rule (78 FR
4059) to apply a routine inflationary adjustment to CMPs under Sec.
28.10, the regulation implementing the Program Fraud Civil Remedies
Act, 31 U.S.C. 3802. Due to a typographical error, the final rule
assigned a penalty for making a false claim or statement, but not for
causing such claim or statement to be made. Liability is provided for
both bases under 31 U.S.C. 3802, as well as under the version of Sec.
28.10 that predated the 2013 rulemaking (See 73 FR 76831, Dec. 17,
2008), and the 2013 final rule was intended only to adjust the penalty
amount, not to remove a basis for liability. As such, the bases for
liability enumerated in Sec. 28.10 are incomplete. Through this
technical correction, HUD can ensure Sec. 28.10 fully implements the
statutory requirements of 31 U.S.C. 3802. Accordingly, HUD amends
Sec. Sec. 28.10(a), (b), and (c) to reflect statutory liability for
causing a false claim or statement to be made, as originally intended.
---------------------------------------------------------------------------
\1\ The Housing Community Development Act of 1992 (12 U.S.C.
1715z-13a(g)(2) incorporated the civil money penalties from section
536 of the HUD Reform Act of 1989 (12 U.S.C. 1715f-14), and thus the
year applied for purposes of the 2015 Act adjustment is 1989.
---------------------------------------------------------------------------
C. Removal of 24 CFR 30.30, 30.55, and 30.69
HUD also takes the opportunity to remove from title 24 of the CFR
two outdated regulations for which HUD no longer has statutory
enforcement authority, and one regulation for which the HUD program was
repealed.
Section 30.30 implements CMPs for violations under the Urban
Homesteading Program, which was administered by HUD's Office of
Community Planning and Development and ceased operation due to repeal
of 12 U.S.C. 1706e on October 1, 1991. Subsequently, HUD removed its
Urban Homesteading regulation at 24 CFR part 590 (79 FR 51894, Sept. 2,
2014) but inadvertently retained Sec. 30.30, which is now obsolete.
Sections 30.55 and 30.69 implement CMPs for violations under the
Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE
Act) (12 U.S.C. 5101 et seq.) and the Interstate Land Sales Full
Disclosure Act (ILSFDA) (15 U.S.C. 1701 et seq.), respectively. In
2011, the Dodd-Frank Act \2\ transferred from HUD to the Consumer
Financial Protection Bureau (CFPB) all of its prior authority to
administer, enforce, and otherwise implement the SAFE Act and ILSFDA.
Accordingly, HUD issued regulations removing 24 CFR part 3400, its SAFE
Act regulation (79 FR 34225, June 16, 2014), and removed 24 CFR parts
1710, 1715, and 1720, its ILSFDA regulations (79 FR 34225, June 16,
2014). Subsequently, CFPB issued its own regulations for these
statutes.\3\ In the process of updating its regulations, HUD
[[Page 38934]]
inadvertently retained Sec. Sec. 30.55 and 30.69, which are now
obsolete.
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\2\ Public Law 111-203, 124 Stat. 1376, approved July 21, 2010.
\3\ See 12 CFR parts 1007 and 1008 for the SAFE Act, and 12 CFR
part 1024 for ILSFDA.
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HUD is now removing Sec. Sec. 30.30, 30.55, and 30.69 from title
24 of the CFR, as originally intended. The removal of these regulations
will streamline HUD's regulations and eliminate confusion regarding the
status of these programs.
II. Justification for Interim Final Rulemaking
HUD generally publishes rules for advance public comment in
accordance with its rule on rulemaking at 24 CFR part 10. However,
under 24 CFR 10.1, HUD may omit prior public notice and comment if it
is ``impracticable, unnecessary, or contrary to the public interest.''
In this instance, HUD has determined that it is unnecessary to delay
the effectiveness of this rule for advance public comment.
This interim final rule follows the statutory directive in the 2015
Act requiring a catch-up adjustment to HUD's CMPs by applying the
adjustment formula established in the statute and publishing an interim
final rule. Accordingly, because calculation of the adjustment is
formula-driven, HUD has limited discretion in updating its regulations
to reflect the new penalty levels derived from application of the
formula. HUD emphasizes that this rule addresses only the matter of the
calculation of the maximum civil monetary penalties for the respective
violations described in the regulations. This rule does not address the
issue of the Secretary's discretion to impose or not to impose a
penalty, nor the procedures that HUD must follow in initiating a civil
monetary penalty action, or in seeking a civil penalty in a Fair
Housing Act case.
III. Effective Date
Section 7 of the Department of Housing and Urban Development Act,
42 U.S.C. 3535, paragraph (o), requires that ``any regulation
implementing any provision of the Department of Housing and Urban
Development Reform Act of 1989 that authorizes the imposition of a
civil money penalty may not become effective until after the expiration
of a public comment period of not less than 60 days.'' Therefore, HUD
delays the effective date to August 16, 2016, which provides for the
required 60 days of public comment and compliance with the 2015 Act's
statutory deadline of August 1, 2016. These new penalties apply to
violations occurring after August 16, 2016.
IV. Findings and Certifications
Regulatory Review--Executive Orders 12866 and 13563
Under Executive Order 12866 (Regulatory Planning and Review), a
determination must be made whether a regulatory action is significant
and therefore, subject to review by the Office of Management and Budget
(OMB) in accordance with the requirements of the order. Executive Order
13563 (Improving Regulations and Regulatory Review) directs executive
agencies to analyze regulations that are ``outmoded, ineffective,
insufficient, or excessively burdensome, and to modify, streamline,
expand, or repeal them in accordance with what has been learned.''
Executive Order 13563 also directs that, where relevant, feasible, and
consistent with regulatory objectives, and to the extent permitted by
law, agencies are to identify and consider regulatory approaches that
reduce burdens and maintain flexibility and freedom of choice for the
public. As discussed above in this preamble, this interim final rule
revises the civil monetary penalty regulations to make inflation
adjustments required by the 2015 Act. It also provides a technical
correction to 24 CFR part 28 to harmonize it with its authorizing
statute and removes obsolete rules from the Code of Federal
Regulations. This interim final rule is consistent with the goals of
Executive Order 13563, to reduce regulatory burdens by modifying and
removing ineffective or outmoded regulations.
As a result of this review, OMB determined that this rule was not
significant under Executive Order 12866 and Executive Order 13563.
Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) generally
requires an agency to conduct a regulatory flexibility analysis of any
rule subject to notice and comment rulemaking requirements, unless the
agency certifies that the rule will not have a significant economic
impact on a substantial number of small entities. Because HUD has
determined that good cause exists to issue this rule without prior
public comment, this rule is not subject to the requirement to publish
an initial or final regulatory flexibility analysis under the RFA as
part of such action.
Unfunded Mandates Reform
Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) \4\
requires that an agency prepare a budgetary impact statement before
promulgating a rule that includes a Federal mandate that may result in
the expenditure by state, local, and tribal governments, in the
aggregate, or by the private sector, of $100 million or more in any one
year. If a budgetary impact statement is required, section 205 of UMRA
also requires an agency to identity and consider a reasonable number of
regulatory alternatives before promulgating a rule.\5\ However, the
UMRA applies only to rules for which an agency publishes a general
notice of proposed rulemaking. As discussed above, HUD has determined,
for good cause, that prior notice and public comment is not required on
this rule and, therefore, the UMRA does not apply to this interim final
rule.
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\4\ 2 U.S.C. 1532.
\5\ 2 U.S.C. 1534.
---------------------------------------------------------------------------
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits an agency
from publishing any rule that has federalism implications if the rule
either imposes substantial direct compliance costs on state and local
governments and is not required by statute, or the rule preempts state
law, unless the agency meets the consultation and funding requirements
of section 6 of the Executive Order. This rule will not have federalism
implications and would not impose substantial direct compliance costs
on state and local governments or preempt state law within the meaning
of the Executive Order.
Environmental Review
This interim final rule does not direct, provide for assistance or
loan and mortgage insurance for, or otherwise govern, or regulate, real
property acquisition, disposition, leasing, rehabilitation, alteration,
demolition, or new construction, or establish, revise or provide for
standards for construction or construction materials, manufactured
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this
final rule is categorically excluded from environmental review under
the National Environmental Policy Act of 1969 (42 U.S.C. 4321).
List of Subjects
24 CFR Part 28
Administrative practice and procedure, Claims, Fraud, Penalties.
24 CFR Part 30
Administrative practice and procedure, Grant programs--housing and
community development, Loan programs--housing and community
development, Mortgage insurance, Penalties.
[[Page 38935]]
24 CFR Part 87
Government contracts, Grant programs, Loan programs, Lobbying,
Penalties, Reporting and recordkeeping requirements.
24 CFR Part 180
Administrative practice and procedure, Aged, Civil rights, Fair
housing, Individuals with disabilities, Investigations, Mortgages,
Penalties, Reporting and recordkeeping requirements.
24 CFR Part 3282
Administrative practice and procedure, Consumer protection,
Intergovernmental relations, Manufactured homes, Reporting and
recordkeeping requirements.
Accordingly, for the reasons described in the preamble, HUD amends
24 CFR parts 28, 30, 87, 180, and 3282 as follows:
PART 28--IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL REMEDIES ACT OF
1986
0
1. The authority citation for part 28 is revised to read as follows:
Authority: 28 U.S.C. 2461 note; 31 U.S.C. 3801-3812; 42 U.S.C.
3535(d).
0
2. In Sec. 28.10, revise paragraphs (a)(1) introductory text and
(b)(1) introductory text and the first sentence in paragraph (c) to
read as follows:
Sec. 28.10 Basis for civil penalties and assessments.
(a) * * *
(1) A civil penalty of not more than $10,781 may be imposed upon
any person who makes, presents, or submits, or causes to be made,
presented, or submitted, a claim that the person knows or has reason to
know:
* * * * *
(b) * * *
(1) A civil penalty of not more than $10,781 may be imposed upon
any person who makes, presents, or submits, or causes to be made,
presented, or submitted, a written statement that:
* * * * *
(c) Limit on liability. If the claim or statement relates to low-
income housing benefits or housing benefits for the elderly or
handicapped, then a person may be held liable only if he or she has
made or caused to be made the claim or statement in the course of
applying for such benefits, with respect to his or her eligibility, or
family's eligibility, to receive such benefits. * * *
* * * * *
PART 30--CIVIL MONEY PENALTIES: CERTAIN PROHIBITED CONDUCT
0
3. The authority citation for part 30 is revised to read as follows:
Authority: 12 U.S.C. 1701q-1, 1703, 1723i, 1735f-14, and 1735f-
15; 15 U.S.C. 1717a; 28 U.S.C. 1 note and 2461 note; 42 U.S.C.
1437z-1 and 3535(d).
0
4. In Sec. 30.20, revise paragraph (b) to read as follows:
Sec. 30.20 Ethical violations by HUD employees.
* * * * *
(b) Maximum penalty. The maximum penalty is $18,936 for each
violation.
0
5. In Sec. 30.25, revise paragraph (b) to read as follows:
Sec. 30.25 Violations by applicants for assistance.
* * * * *
(b) Maximum penalty. The maximum penalty is $18,936 for each
violation.
Sec. 30.30 [Removed]
0
6. Remove Sec. 30.30.
0
7. In Sec. 30.35, revise the first sentence in paragraph (c)(1) to
read as follows:
Sec. 30.35 Mortgagees and lenders.
* * * * *
(c)(1) Amount of penalty. The maximum penalty is $9,468 for each
violation, up to a limit of $1,893,610 for all violations committed
during any one-year period. * * *
* * * * *
0
8. In Sec. 30.36, revise the first sentence in paragraph (c) to read
as follows:
Sec. 30.36 Other participants in FHA programs.
* * * * *
(c) Amount of penalty. The maximum penalty is $9,468 for each
violation, up to a limit of $1,893,610 for all violations committed
during any one-year period. * * *
0
9. In Sec. 30.40, revise the first sentence in paragraph (c) to read
as follows:
Sec. 30.40 Loan guarantees for Indian housing.
* * * * *
(c) Amount of penalty. The maximum penalty is $9,468 for each
violation, up to a limit of $1,893,610 for all violations committed
during any one-year period. * * *
0
10. In Sec. 30.45, revise paragraph (g) to read as follows:
Sec. 30.45 Multifamily and section 202 or 811 mortgagors.
* * * * *
(g) Maximum penalty. The maximum penalty for each violation under
paragraphs (c) and (f) of this section is $47,340.
* * * * *
0
11. In Sec. 30.50, revise the first sentence in paragraph (c) to read
as follows:
Sec. 30.50 GNMA issuers and custodians.
* * * * *
(c) Amount of penalty. The maximum penalty is $9,468 for each
violation, up to a limit of $1,893,610 during any one-year period. * *
*
Sec. 30.55 [Removed]
0
12. Remove Sec. 30.55.
0
13. In Sec. 30.60, revise paragraph (c) to read as follows:
Sec. 30.60 Dealers or sponsored third-party originators.
* * * * *
(c) Amount of penalty. The maximum penalty is $9,468 for each
violation, up to a limit for any particular person of $1,893,610 during
any one-year period.
0
14. In Sec. 30.65, revise paragraph (b) to read as follows:
Sec. 30.65 Failure to disclose lead-based paint hazards.
* * * * *
(b) Amount of penalty. The maximum penalty is $16,773 for each
violation.
0
15. In Sec. 30.68, revise paragraph (c) to read as follows:
Sec. 30.68 Section 8 owners.
* * * * *
(c) Maximum penalty. The maximum penalty for each violation under
this section is $36,794.
* * * * *
Sec. 30.69 [Removed]
0
16. Remove Sec. 30.69.
PART 87--NEW RESTRICTIONS ON LOBBYING
0
17. The authority citation for part 87 is revised to read as follows:
Authority: 28 U.S.C. 1 note; 31 U.S.C. 1352; 42 U.S.C. 3535(d).
0
18. In Sec. 87.400, revise paragraphs (a), (b), and (e) to read as
follows:
Sec. 87.400 Penalties.
(a) Any person who makes an expenditure prohibited herein shall be
subject to a civil penalty of not less than $18,936 and not more than
$189,361 for each such expenditure.
(b) Any person who fails to file or amend the disclosure form (see
appendix B) to be filed or amended if required herein, shall be subject
to a civil penalty of not less than $18,936
[[Page 38936]]
and not more than $189,361 for each such failure.
* * * * *
(e) First offenders under paragraph (a) or (b) of this section
shall be subject to a civil penalty of $18,936, absent aggravating
circumstances. Second and subsequent offenses by persons shall be
subject to an appropriate civil penalty between $18,936 and $189,361,
as determined by the agency head or his or her designee.
* * * * *
PART 180--CONSOLIDATED HUD HEARING PROCEDURES FOR CIVIL RIGHTS
MATTERS
0
19. The authority citation for part 180 is revised to read as follows:
Authority: 28 U.S.C. 1 note; 29 U.S.C. 794; 42 U.S.C. 2000d-1,
3535(d), 3601-3619, 5301-5320, and 6103.
0
20. In Sec. 180.671, revise paragraphs (a)(1) through (3) to read as
follows:
Sec. 180.671 Assessing civil penalties for Fair Housing Act cases.
(a) * * *
(1) $19,787, if the respondent has not been adjudged in any
administrative hearing or civil action permitted under the Fair Housing
Act or any state or local fair housing law, or in any licensing or
regulatory proceeding conducted by a federal, state, or local
governmental agency, to have committed any prior discriminatory housing
practice.
(2) $49,467, if the respondent has been adjudged in any
administrative hearing or civil action permitted under the Fair Housing
Act, or under any state or local fair housing law, or in any licensing
or regulatory proceeding conducted by a federal, state, or local
government agency, to have committed one other discriminatory housing
practice and the adjudication was made during the 5-year period
preceding the date of filing of the charge.
(3) $98,935, if the respondent has been adjudged in any
administrative hearings or civil actions permitted under the Fair
Housing Act, or under any state or local fair housing law, or in any
licensing or regulatory proceeding conducted by a federal, state, or
local government agency, to have committed two or more discriminatory
housing practices and the adjudications were made during the 7-year
period preceding the date of filing of the charge.
* * * * *
PART 3282--MANUFACTURED HOME PROCEDURAL AND ENFORCEMENT REGULATIONS
0
21. The authority citation for part 3282 is revised to read as follows:
Authority: 28 U.S.C. 1 note; 28 U.S.C. 2461 note; 42 U.S.C.
3535(d) and 5424.
0
22. Revise Sec. 3282.10 to read as follows:
Sec. 3282.10 Civil and criminal penalties.
Failure to comply with these regulations may subject the party in
question to the civil and criminal penalties provided for in section
611 of the Act, 42 U.S.C. 5410. The maximum amount of penalties imposed
under section 611 of the Act shall be $2,750 for each violation, up to
a maximum of $3,437,500 for any related series of violations occurring
within one year from the date of the first violation.
Dated: May 20, 2016.
Helen R. Kanovsky,
General Counsel.
[FR Doc. 2016-14060 Filed 6-14-16; 8:45 am]
BILLING CODE 4210-67-P
