Civil Monetary Penalties Inflation Adjustments, 9967-9969 [2017-02657]
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9967
Rules and Regulations
Federal Register
Vol. 82, No. 26
Thursday, February 9, 2017
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 205
[Doc. No. AMS–NOP–15–0012; NOP–15–06]
RIN 0581–AD44
National Organic Program (NOP);
Organic Livestock and Poultry
Practices
AGENCY:
Agricultural Marketing Service,
USDA.
ACTION:
Final rule; delay of effective
date.
sradovich on DSK3GMQ082PROD with RULES
Dated: February 3, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 2017–02608 Filed 2–8–17; 8:45 am]
Consistent with the
Memorandum of January 20, 2017, from
the Assistant to the President and Chief
of Staff, entitled, ‘‘Regulatory Freeze
Pending Review,’’ this action delays the
effective date for 60 days for the rule,
Organic Livestock and Poultry Practices.
This rule, published in the Federal
Register on January 19, 2017, amends
the organic livestock and poultry
production requirements by adding new
provisions for livestock handling and
transport for slaughter and avian living
conditions; and expands and clarifies
existing requirements covering livestock
care and production practices and
mammalian living conditions. The rule
was originally set to take effect on
March 20, 2017.
DATES: The effective date of the final
rule published on January 19, 2017 (82
FR 7042) is delayed from March 20,
2017, to a new effective date of May 19,
2017.
FOR FURTHER INFORMATION CONTACT: Paul
Lewis, Ph.D., Director, Standards
Division. Telephone: (202) 720–3252;
Fax: (202) 260–9151.
SUPPLEMENTARY INFORMATION: AMS is
taking this action based on the
Memorandum of January 20, 2017, from
the Assistant to the President and Chief
of Staff, entitled, ‘‘Regulatory Freeze
SUMMARY:
VerDate Sep<11>2014
Pending Review.’’ This memorandum
directs agencies to extend the effective
dates of regulations which have been
published in the Federal Register, but
have not taken effect. This action delays
the effective date of the final rule,
Organic Livestock and Poultry Practices,
82 FR 7042 (January 19, 2017), by 60
days.
To the extent that 5 U.S.C. 553(b)(A)
applies to this action, it is exempt from
notice and comment for good cause and
the reasons cited above. AMS finds that
notice and solicitation of comment
regarding the brief extension of the
effective date for the final regulation are
impracticable, unnecessary, or contrary
to the public interest pursuant to 5
U.S.C. 553(b)(B). AMS also believes that
affected entities need to be informed as
soon as possible of the extension and its
length in order to plan and adjust their
implementation process accordingly.
15:44 Feb 08, 2017
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BILLING CODE 3410–02–P
SMALL BUSINESS ADMINISTRATION
13 CFR Parts 107, 120, 142, and 146
RIN 3245–AG83
Civil Monetary Penalties Inflation
Adjustments
Small Business Administration.
Interim final rule.
AGENCY:
ACTION:
The Small Business
Administration (SBA) is amending its
regulations to adjust for inflation the
amount of certain civil monetary
penalties that are within the jurisdiction
of the agency. These adjustments
comply with the requirement in the
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended by
the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015, to make annual adjustments to the
penalties.
DATES: Effective Date: This rule is
effective February 9, 2017.
Comment Date: Comments must be
received on or before April 10, 2017.
ADDRESSES: You may submit comments,
identified by RIN 3245–AG83 by any of
the following methods:
SUMMARY:
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• Federal Rulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail or Hand Delivery/Courier:
Arlene Embrey, 409 Third Street SW.,
Washington, DC 20416.
SBA will post all comments on https://
www.regulations.gov. If you wish to
submit confidential business
information (CBI) as defined in the User
Notice at https://www.regulations.gov,
please submit the information to Arlene
Embrey, Trial Attorney, 409 Third Street
SW., Washington, DC 20416, and
highlight the information that you
consider to be CBI and explain why you
believe this information should be held
confidential. SBA will review the
information and make a final
determination as to whether or not the
information will be published.
FOR FURTHER INFORMATION CONTACT:
Arlene Embrey, 202–205–6976, or at
arlene.embrey@sba.gov.
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
Inflation Adjustment Improvements
Act), Public Law 114–74, 129 Stat. 584.
This act amended the Federal Civil
Penalties Inflation Adjustment Act of
1990, Public Law 101–410, 104 Stat 890
(the 1990 Inflation Adjustment Act), to
improve the effectiveness of civil
monetary penalties and to maintain
their deterrent effect. The 2015 Inflation
Adjustment Improvements Act requires
agencies to issue an interim final rule
(IFR) to: (1) Adjust the level of civil
monetary penalties with an initial
‘‘catch-up’’ adjustment; and (2) make
subsequent annual adjustments for
inflation no later than January 15 of
each subsequent year. The 2015
Inflation Adjustment Improvements Act
also authorizes agencies to implement
the annual adjustments without regard
to the requirements for public notice
and comment or delayed effective date
under the Administrative Procedures
Act, 5 U.S.C. 553(b)(B) and (d)(3),
respectively.
In addition, based on the definition of
a ‘‘civil monetary penalty’’ in the 1990
Inflation Adjustment Act, agencies are
to make adjustments only to the civil
penalties that (i) are for a specific
monetary amount as provided by federal
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09FER1
9968
Federal Register / Vol. 82, No. 26 / Thursday, February 9, 2017 / Rules and Regulations
law or have a maximum amount
provided for by federal law; (ii) are
assessed or enforced by an agency; and
(iii) are enforced or assessed in an
administrative proceeding or a civil
action in the Federal courts. Therefore,
penalties that are stated as a percentage
of an indeterminate amount or as a
function of a violation (penalties that
encompass actual damages incurred) are
not to be adjusted.
On May 19, 2016, SBA complied with
the first requirement by publishing an
IFR with the initial adjustments to the
civil penalties SBA is responsible for
assessing or enforcing. 81 FR 31489.
These initial adjustments to the
penalties became effective on August 1,
2016. In this rule SBA complies with
the second requirement by making the
first annual inflation adjustment to
these penalties.
Consistent with the 2015 Inflation
Adjustment Improvements Act, as well
as the guidance issued by the Office of
Management and Budget in M–17–11,
Implementation of the 2017 annual
adjustment pursuant to the Federal Civil
Penalties Inflation Act Improvements
Act, (December 16, 2016), the formula
for calculating the annual adjustments is
based on the Consumer Price Index for
all Urban Consumers (CPI–U) for the
month of October preceding the
adjustment. Specifically, the change
between the October CPI–U preceding
the date of adjustment and the prior
year’s CPI–U, which for the adjustments
in this rule is the percentage change
between October 2016 CPI–U (241.729)
and October 2015 CPI–U (237.838) or
1.01636. Therefore, the annual
adjustments identified in this rule were
obtained by applying this multiplier to
the most recent penalty amounts
established in the IFR published in May
2016.
sradovich on DSK3GMQ082PROD with RULES
II. Civil Money Penalties Adjusted by
This Rule
This rule makes adjustments to civil
monetary penalties authorized by the
Small Business Act, the Small Business
Investment Act of 1958 (SBIAct), the
Program Fraud Civil Remedies Act and
the Byrd Amendment to the Federal
Regulation of Lobbying Act. These
penalties and the implementing
regulations are discussed below.
1. 13 CFR 107.665—Civil Penalties
SBA licenses, regulates and provides
financial assistance to financial entities
called small business investment
companies (SBICs). Pursuant to section
315 of the SBIAct, 15 U.S.C. 687g, SBA
may impose a penalty on any SBIC that
fails to comply with SBA’s regulations
or directives governing the filing of
VerDate Sep<11>2014
15:44 Feb 08, 2017
Jkt 241001
regular or special reports. The penalty
for non-compliance is incorporated in
§ 107.665 of the SBIC program
regulations.
The current civil penalty amount for
violation of this requirement, as
adjusted in May 2016, is $250. This
amount was multiplied by the
multiplier of 1.01636 to reach a product
of $254, rounded to the nearest dollar.
Thus, the new civil penalty amount is
$254 for each and every day an SBIC
fails to file a required report.
2. 13 CFR 120.465—Civil Penalty for
Late Submission of Required Reports
According to the regulations at
§ 120.465, any small business lending
company (SBLC) that violates a
regulation or written directive issued by
the SBA Administrator regarding the
filing of any regular or special report is
subject to the civil penalty amount
stated in § 120.465(b) for each day the
company fails to file the report, unless
the small business lending company can
show that there is reasonable cause for
its failure to file. This penalty, which is
authorized by section 23(j)(1) of the
Small Business Act, 15 U.S.C. 650(j)(1),
was adjusted in the May 2016 IFR from
$5,000 to $6,229. However, due to a
typographical error, the amount was
published incorrectly in the May 2016
IFR as $6,299. The amount should have
been stated as $6,229, the product of the
then $5,000 penalty multiplied by
1.24588, the multiplier established
under the 2015 Inflation Adjustment
Improvements Act.
In light of this correction, this rule
amends § 120.465(b) to adjust this civil
penalty by multiplying $6,229, the
correct product under the guidelines for
the May 2016 IFR, by the multiplier of
1.01636 to reach a product of $6,331,
rounded to the nearest dollar. Thus, the
new civil penalty amount is not more
than $6,331 for each and every day an
SBLC fails to file the respective report.
3. 13 CFR 142.1—Overview of
Regulations
SBA has promulgated regulations at
13 CFR part 142 to implement the civil
penalties authorized by the Program
Fraud Civil Remedies Act of 1986
(PFCRA), 31 U.S.C. 3801–3812. Under
the current regulation at § 142.1(b), a
person who submits, or causes to be
submitted, a false claim or a false
statement to SBA is subject to a civil
penalty of not more than $10,781, for
each statement or claim.
This rule amends § 142.1(b) to adjust
the current civil penalty to $10,957 per
statement or claim. The adjusted civil
penalty amount was calculated by
multiplying the current civil penalty of
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
$10,781 by the multiplier of 1.01636 to
reach a product of $10,957, rounded to
the nearest dollar.
4. 13 CFR 146.400—Penalties
SBA’s regulations at 13 CFR part 146
govern lobbying activities by recipients
of federal financial assistance. These
regulations implement the authority in
31 U.S.C. 1352, which was established
in 1989 and impose penalties on any
recipient that fails to comply with
certain requirements in the part.
Specifically, under § 146.400(a) and (b),
penalties may be imposed on those who
make prohibited expenditures or fail to
file the required disclosure forms or to
amend such forms, if necessary. The
regulations at § 146.400(a) and (b) were
amended by the May 2016 IFR to adjust
the penalty amounts of ‘‘not less than
$10,000 and no more than $100,000’’ to
‘‘not less $18,936 and no more than
$189,361’’ for each prohibited
expenditure or failure to file or amend
the disclosure forms. The May 2016 IFR
also amended § 146.400(e) to (1) adjust
the civil penalty that may be imposed
for a first time violation of § 146.400(a)
and (b), to a maximum of $18,936,
absent aggravating circumstances, and
(2) adjust the civil penalty that may be
imposed for second and subsequent
offenses to not less $18,936 and no more
than $189,361.
This rule amends § 146.400(a) and (b),
to adjust the current civil penalty
amounts to ‘‘not less than $19,246 and
not more than $192,459.’’ The current
civil penalty amounts of $18,936 and
$189,361 were multiplied by the
multiplier of 1.01636 to reach a product
of $19,246 and $192,459, respectively,
rounded to the nearest dollar.
This rule also amends § 146.400(e) to
adjust the civil penalty that may be
imposed for a first time violation of
§ 146.400(a) and (b) to a maximum of
$19,246 and to adjust the civil penalty
that may be imposed for second and
subsequent offenses to not less than
$19,246 and not more than $192,459.
The current civil penalty amounts of
$18,936 and $189,361 were multiplied
by the multiplier of 1.01636 to reach a
product of $19,246 and $192,459,
respectively, rounded to the nearest
dollar.
III. Justification for Interim Final Rule
The 2015 Inflation Adjustment
Improvements Act specifically
authorizes agencies to promulgate
rulemaking for the annual adjustment to
their civil monetary penalties,
‘‘notwithstanding section 553 of title 5,
United States Code,’’ which generally
requires agencies to provide the public
with an opportunity to comment on the
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Federal Register / Vol. 82, No. 26 / Thursday, February 9, 2017 / Rules and Regulations
rule making before the rule can be
effective. 5 U.S.C. 553(b)
IV. Justification for Immediate Effective
Date
Section 553(d) requires agencies to
publish their rules at least 30 days
before their effective dates, except if the
agency finds for good cause that the
delay is impracticable, unnecessary, or
contrary to the public interest. By
expressly exempting this rule from
section 553, the 2015 Inflation
Adjustment Improvements Act has
provided the agency with the good
cause justification for this rule to
become effective on the date it is
published in the Federal Register.
Compliance With Executive Orders
12866, 12988, and 13132, and the
Paperwork Reduction Act (44 U.S.C. Ch.
35) and the Regulatory Flexibility Act (5
U.S.C. 601–612)
Executive Order 12866
The Office of Management and Budget
has determined that this interim final
rule is not a significant regulatory action
under Executive Order 12866. This is
also not a major rule under the
Congressional Review Act, 5 U.S.C. 800.
Executive Order 12988
This action meets applicable
standards set forth in Sections 3(a) and
3(b)(2) of Executive Order 12988, Civil
Justice Reform, to minimize litigation,
eliminate ambiguity, and reduce
burden. The action does not have
retroactive or preemptive effect.
Executive Order 13132
For the purpose of Executive Order
13132, SBA has determined that the rule
will not have substantial direct effects
on the States, on the relationship
between the national government and
the States, or on the distribution of
power and responsibilities among the
various levels of government. Therefore,
this interim final rule has no federalism
implications warranting preparation of a
federalism assessment.
sradovich on DSK3GMQ082PROD with RULES
Paperwork Reduction Act
SBA has determined that this rule
does not impose additional reporting or
recordkeeping requirements.
Regulatory Flexibility Act (RFA)
The RFA requires agencies to consider
the effect of their regulatory actions on
small entities, including small nonprofit businesses, and small local
governments. Pursuant to the RFA,
when an agency issues a rule the agency
must prepare an analysis that describes
whether the impact of the rule will have
a significant economic impact on a
VerDate Sep<11>2014
15:44 Feb 08, 2017
Jkt 241001
substantial number of such small
entities. However, the RFA requires
such analysis only where notice and
comment rulemaking is required. As
stated above, SBA has express statutory
authority to issue this rule without
regard to the notice and comment. Since
notice and comment is not required
before this rule is issued, SBA is not
required to prepare a regulatory
analysis.
List of Subjects
13 CFR Part 107
Investment companies, Loan
programs—business, Reporting and
recordkeeping requirements, Small
businesses.
13 CFR Part 120
Loan programs—business, Reporting
and recordkeeping requirements, Small
businesses.
13 CFR Part 142
Administrative practice and
procedure, Claims, Fraud, Penalties.
13 CFR Part 146
Government contracts, Grant
programs, Loan programs, Lobbying,
Penalties, Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, SBA amends 13 CFR parts
107, 120, 142, and 146 as follows:
9969
Authority: 15 U.S.C. 634(b); 31 U.S.C.
3803(g)(2).
§ 142.1
[Amended]
6. Paragraph (b) of § 142.1 is amended
by removing ‘‘$10,781’’ and adding in
its place ‘‘$10,957’’.
■
PART 146—NEW RESTRICTIONS ON
LOBBYING
7. The authority citation for part 146
continues to read as follows:
■
Authority: Section 319, Pub. L. 101–121
(31 U.S.C. 1352); 15 U.S.C. 634(b)(6).
§ 146.400
[Amended]
8. Paragraphs (a), (b), and (e) of
§ 146.400 are amended by removing
‘‘$18,936’’ wherever it appears and
adding in its place ‘‘$19,246’’ and by
removing ‘‘$189,361’’ and adding in its
place ‘‘$192,459’’.
■
Dated: February 3, 2017.
Joseph P. Loddo,
Acting Administrator.
[FR Doc. 2017–02657 Filed 2–8–17; 8:45 am]
BILLING CODE 8025–01–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
15 CFR Part 902
PART 107—SMALL BUSINESS
INVESTMENT COMPANIES
50 CFR Part 300
1. The authority citation for part 107
is revised to read as follows:
RIN 0648–BB86
Authority: 15 U.S.C. 681, 683, 687(c), 687b,
687d, 687g, 687m.
International Affairs; Antarctic Marine
Living Resources Convention Act
§ 107.665
AGENCY:
■
[Amended]
2. In § 107.665, remove ‘‘$250’’ and
add in its place ‘‘$254’’.
■
PART 120—BUSINESS LOANS
3. The authority citation for part 120
continues to read as follows:
■
Authority: 15 U.S.C. 634(b)(6), (b)(7),
(b)(14), (h), and note, 636(a), (h) and (m), 650,
687(f), 696(3), and 697(a) and (e); Public Law
111–5, 123 Stat. 115, Public Law 111–240,
124 Stat. 2504; Public Law 114–113, 129 Stat.
2242.
§ 120.465
[Amended]
4. Paragraph (b) of § 120.465 is
amended by removing ‘‘$6,299’’ and
adding in its place ‘‘$6,331’’.
■
PART 142—PROGRAM FRAUD CIVIL
REMEDIES ACT REGULATIONS
5. The authority citation for part 142
continues to read as follows:
■
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[Docket No. 120201087–6641–02]
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Final rule; delay of effective
date.
In accordance with the
memorandum of January 20, 2017, from
the Assistant to the President and Chief
of Staff, entitled ‘‘Regulatory Freeze
Pending Review,’’ published in the
Federal Register on January 24, 2017
(the Memorandum), this action delays
the effective date of the final rule
published on January 19, 2017.
DATES: Effective February 9, 2017, the
effective date of the final rule amending
15 CFR part 902 and 50 CFR part 300,
that published on January 19, 2017, at
82 FR 6221, is delayed until March 21,
2017.
FOR FURTHER INFORMATION CONTACT: Mi
Ae Kim, Office of International Affairs
SUMMARY:
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Agencies
[Federal Register Volume 82, Number 26 (Thursday, February 9, 2017)]
[Rules and Regulations]
[Pages 9967-9969]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-02657]
=======================================================================
-----------------------------------------------------------------------
SMALL BUSINESS ADMINISTRATION
13 CFR Parts 107, 120, 142, and 146
RIN 3245-AG83
Civil Monetary Penalties Inflation Adjustments
AGENCY: Small Business Administration.
ACTION: Interim final rule.
-----------------------------------------------------------------------
SUMMARY: The Small Business Administration (SBA) is amending its
regulations to adjust for inflation the amount of certain civil
monetary penalties that are within the jurisdiction of the agency.
These adjustments comply with the requirement in the Federal Civil
Penalties Inflation Adjustment Act of 1990, as amended by the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015, to
make annual adjustments to the penalties.
DATES: Effective Date: This rule is effective February 9, 2017.
Comment Date: Comments must be received on or before April 10,
2017.
ADDRESSES: You may submit comments, identified by RIN 3245-AG83 by any
of the following methods:
Federal Rulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Mail or Hand Delivery/Courier: Arlene Embrey, 409 Third
Street SW., Washington, DC 20416.
SBA will post all comments on https://www.regulations.gov. If you
wish to submit confidential business information (CBI) as defined in
the User Notice at https://www.regulations.gov, please submit the
information to Arlene Embrey, Trial Attorney, 409 Third Street SW.,
Washington, DC 20416, and highlight the information that you consider
to be CBI and explain why you believe this information should be held
confidential. SBA will review the information and make a final
determination as to whether or not the information will be published.
FOR FURTHER INFORMATION CONTACT: Arlene Embrey, 202-205-6976, or at
arlene.embrey@sba.gov.
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 Inflation Adjustment Improvements Act), Public Law 114-74, 129
Stat. 584. This act amended the Federal Civil Penalties Inflation
Adjustment Act of 1990, Public Law 101-410, 104 Stat 890 (the 1990
Inflation Adjustment Act), to improve the effectiveness of civil
monetary penalties and to maintain their deterrent effect. The 2015
Inflation Adjustment Improvements Act requires agencies to issue an
interim final rule (IFR) to: (1) Adjust the level of civil monetary
penalties with an initial ``catch-up'' adjustment; and (2) make
subsequent annual adjustments for inflation no later than January 15 of
each subsequent year. The 2015 Inflation Adjustment Improvements Act
also authorizes agencies to implement the annual adjustments without
regard to the requirements for public notice and comment or delayed
effective date under the Administrative Procedures Act, 5 U.S.C.
553(b)(B) and (d)(3), respectively.
In addition, based on the definition of a ``civil monetary
penalty'' in the 1990 Inflation Adjustment Act, agencies are to make
adjustments only to the civil penalties that (i) are for a specific
monetary amount as provided by federal
[[Page 9968]]
law or have a maximum amount provided for by federal law; (ii) are
assessed or enforced by an agency; and (iii) are enforced or assessed
in an administrative proceeding or a civil action in the Federal
courts. Therefore, penalties that are stated as a percentage of an
indeterminate amount or as a function of a violation (penalties that
encompass actual damages incurred) are not to be adjusted.
On May 19, 2016, SBA complied with the first requirement by
publishing an IFR with the initial adjustments to the civil penalties
SBA is responsible for assessing or enforcing. 81 FR 31489. These
initial adjustments to the penalties became effective on August 1,
2016. In this rule SBA complies with the second requirement by making
the first annual inflation adjustment to these penalties.
Consistent with the 2015 Inflation Adjustment Improvements Act, as
well as the guidance issued by the Office of Management and Budget in
M-17-11, Implementation of the 2017 annual adjustment pursuant to the
Federal Civil Penalties Inflation Act Improvements Act, (December 16,
2016), the formula for calculating the annual adjustments is based on
the Consumer Price Index for all Urban Consumers (CPI-U) for the month
of October preceding the adjustment. Specifically, the change between
the October CPI-U preceding the date of adjustment and the prior year's
CPI-U, which for the adjustments in this rule is the percentage change
between October 2016 CPI-U (241.729) and October 2015 CPI-U (237.838)
or 1.01636. Therefore, the annual adjustments identified in this rule
were obtained by applying this multiplier to the most recent penalty
amounts established in the IFR published in May 2016.
II. Civil Money Penalties Adjusted by This Rule
This rule makes adjustments to civil monetary penalties authorized
by the Small Business Act, the Small Business Investment Act of 1958
(SBIAct), the Program Fraud Civil Remedies Act and the Byrd Amendment
to the Federal Regulation of Lobbying Act. These penalties and the
implementing regulations are discussed below.
1. 13 CFR 107.665--Civil Penalties
SBA licenses, regulates and provides financial assistance to
financial entities called small business investment companies (SBICs).
Pursuant to section 315 of the SBIAct, 15 U.S.C. 687g, SBA may impose a
penalty on any SBIC that fails to comply with SBA's regulations or
directives governing the filing of regular or special reports. The
penalty for non-compliance is incorporated in Sec. 107.665 of the SBIC
program regulations.
The current civil penalty amount for violation of this requirement,
as adjusted in May 2016, is $250. This amount was multiplied by the
multiplier of 1.01636 to reach a product of $254, rounded to the
nearest dollar. Thus, the new civil penalty amount is $254 for each and
every day an SBIC fails to file a required report.
2. 13 CFR 120.465--Civil Penalty for Late Submission of Required
Reports
According to the regulations at Sec. 120.465, any small business
lending company (SBLC) that violates a regulation or written directive
issued by the SBA Administrator regarding the filing of any regular or
special report is subject to the civil penalty amount stated in Sec.
120.465(b) for each day the company fails to file the report, unless
the small business lending company can show that there is reasonable
cause for its failure to file. This penalty, which is authorized by
section 23(j)(1) of the Small Business Act, 15 U.S.C. 650(j)(1), was
adjusted in the May 2016 IFR from $5,000 to $6,229. However, due to a
typographical error, the amount was published incorrectly in the May
2016 IFR as $6,299. The amount should have been stated as $6,229, the
product of the then $5,000 penalty multiplied by 1.24588, the
multiplier established under the 2015 Inflation Adjustment Improvements
Act.
In light of this correction, this rule amends Sec. 120.465(b) to
adjust this civil penalty by multiplying $6,229, the correct product
under the guidelines for the May 2016 IFR, by the multiplier of 1.01636
to reach a product of $6,331, rounded to the nearest dollar. Thus, the
new civil penalty amount is not more than $6,331 for each and every day
an SBLC fails to file the respective report.
3. 13 CFR 142.1--Overview of Regulations
SBA has promulgated regulations at 13 CFR part 142 to implement the
civil penalties authorized by the Program Fraud Civil Remedies Act of
1986 (PFCRA), 31 U.S.C. 3801-3812. Under the current regulation at
Sec. 142.1(b), a person who submits, or causes to be submitted, a
false claim or a false statement to SBA is subject to a civil penalty
of not more than $10,781, for each statement or claim.
This rule amends Sec. 142.1(b) to adjust the current civil penalty
to $10,957 per statement or claim. The adjusted civil penalty amount
was calculated by multiplying the current civil penalty of $10,781 by
the multiplier of 1.01636 to reach a product of $10,957, rounded to the
nearest dollar.
4. 13 CFR 146.400--Penalties
SBA's regulations at 13 CFR part 146 govern lobbying activities by
recipients of federal financial assistance. These regulations implement
the authority in 31 U.S.C. 1352, which was established in 1989 and
impose penalties on any recipient that fails to comply with certain
requirements in the part. Specifically, under Sec. 146.400(a) and (b),
penalties may be imposed on those who make prohibited expenditures or
fail to file the required disclosure forms or to amend such forms, if
necessary. The regulations at Sec. 146.400(a) and (b) were amended by
the May 2016 IFR to adjust the penalty amounts of ``not less than
$10,000 and no more than $100,000'' to ``not less $18,936 and no more
than $189,361'' for each prohibited expenditure or failure to file or
amend the disclosure forms. The May 2016 IFR also amended Sec.
146.400(e) to (1) adjust the civil penalty that may be imposed for a
first time violation of Sec. 146.400(a) and (b), to a maximum of
$18,936, absent aggravating circumstances, and (2) adjust the civil
penalty that may be imposed for second and subsequent offenses to not
less $18,936 and no more than $189,361.
This rule amends Sec. 146.400(a) and (b), to adjust the current
civil penalty amounts to ``not less than $19,246 and not more than
$192,459.'' The current civil penalty amounts of $18,936 and $189,361
were multiplied by the multiplier of 1.01636 to reach a product of
$19,246 and $192,459, respectively, rounded to the nearest dollar.
This rule also amends Sec. 146.400(e) to adjust the civil penalty
that may be imposed for a first time violation of Sec. 146.400(a) and
(b) to a maximum of $19,246 and to adjust the civil penalty that may be
imposed for second and subsequent offenses to not less than $19,246 and
not more than $192,459. The current civil penalty amounts of $18,936
and $189,361 were multiplied by the multiplier of 1.01636 to reach a
product of $19,246 and $192,459, respectively, rounded to the nearest
dollar.
III. Justification for Interim Final Rule
The 2015 Inflation Adjustment Improvements Act specifically
authorizes agencies to promulgate rulemaking for the annual adjustment
to their civil monetary penalties, ``notwithstanding section 553 of
title 5, United States Code,'' which generally requires agencies to
provide the public with an opportunity to comment on the
[[Page 9969]]
rule making before the rule can be effective. 5 U.S.C. 553(b)
IV. Justification for Immediate Effective Date
Section 553(d) requires agencies to publish their rules at least 30
days before their effective dates, except if the agency finds for good
cause that the delay is impracticable, unnecessary, or contrary to the
public interest. By expressly exempting this rule from section 553, the
2015 Inflation Adjustment Improvements Act has provided the agency with
the good cause justification for this rule to become effective on the
date it is published in the Federal Register.
Compliance With Executive Orders 12866, 12988, and 13132, and the
Paperwork Reduction Act (44 U.S.C. Ch. 35) and the Regulatory
Flexibility Act (5 U.S.C. 601-612)
Executive Order 12866
The Office of Management and Budget has determined that this
interim final rule is not a significant regulatory action under
Executive Order 12866. This is also not a major rule under the
Congressional Review Act, 5 U.S.C. 800.
Executive Order 12988
This action meets applicable standards set forth in Sections 3(a)
and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden. The action does not
have retroactive or preemptive effect.
Executive Order 13132
For the purpose of Executive Order 13132, SBA has determined that
the rule will not have substantial direct effects on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government. Therefore, this interim final rule has no federalism
implications warranting preparation of a federalism assessment.
Paperwork Reduction Act
SBA has determined that this rule does not impose additional
reporting or recordkeeping requirements.
Regulatory Flexibility Act (RFA)
The RFA requires agencies to consider the effect of their
regulatory actions on small entities, including small non-profit
businesses, and small local governments. Pursuant to the RFA, when an
agency issues a rule the agency must prepare an analysis that describes
whether the impact of the rule will have a significant economic impact
on a substantial number of such small entities. However, the RFA
requires such analysis only where notice and comment rulemaking is
required. As stated above, SBA has express statutory authority to issue
this rule without regard to the notice and comment. Since notice and
comment is not required before this rule is issued, SBA is not required
to prepare a regulatory analysis.
List of Subjects
13 CFR Part 107
Investment companies, Loan programs--business, Reporting and
recordkeeping requirements, Small businesses.
13 CFR Part 120
Loan programs--business, Reporting and recordkeeping requirements,
Small businesses.
13 CFR Part 142
Administrative practice and procedure, Claims, Fraud, Penalties.
13 CFR Part 146
Government contracts, Grant programs, Loan programs, Lobbying,
Penalties, Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, SBA amends 13 CFR parts
107, 120, 142, and 146 as follows:
PART 107--SMALL BUSINESS INVESTMENT COMPANIES
0
1. The authority citation for part 107 is revised to read as follows:
Authority: 15 U.S.C. 681, 683, 687(c), 687b, 687d, 687g, 687m.
Sec. 107.665 [Amended]
0
2. In Sec. 107.665, remove ``$250'' and add in its place ``$254''.
PART 120--BUSINESS LOANS
0
3. The authority citation for part 120 continues to read as follows:
Authority: 15 U.S.C. 634(b)(6), (b)(7), (b)(14), (h), and note,
636(a), (h) and (m), 650, 687(f), 696(3), and 697(a) and (e); Public
Law 111-5, 123 Stat. 115, Public Law 111-240, 124 Stat. 2504; Public
Law 114-113, 129 Stat. 2242.
Sec. 120.465 [Amended]
0
4. Paragraph (b) of Sec. 120.465 is amended by removing ``$6,299'' and
adding in its place ``$6,331''.
PART 142--PROGRAM FRAUD CIVIL REMEDIES ACT REGULATIONS
0
5. The authority citation for part 142 continues to read as follows:
Authority: 15 U.S.C. 634(b); 31 U.S.C. 3803(g)(2).
Sec. 142.1 [Amended]
0
6. Paragraph (b) of Sec. 142.1 is amended by removing ``$10,781'' and
adding in its place ``$10,957''.
PART 146--NEW RESTRICTIONS ON LOBBYING
0
7. The authority citation for part 146 continues to read as follows:
Authority: Section 319, Pub. L. 101-121 (31 U.S.C. 1352); 15
U.S.C. 634(b)(6).
Sec. 146.400 [Amended]
0
8. Paragraphs (a), (b), and (e) of Sec. 146.400 are amended by
removing ``$18,936'' wherever it appears and adding in its place
``$19,246'' and by removing ``$189,361'' and adding in its place
``$192,459''.
Dated: February 3, 2017.
Joseph P. Loddo,
Acting Administrator.
[FR Doc. 2017-02657 Filed 2-8-17; 8:45 am]
BILLING CODE 8025-01-P