Adjustment of Civil Monetary Penalties for Inflation, 18559-18563 [2017-08034]
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Federal Register / Vol. 82, No. 75 / Thursday, April 20, 2017 / Rules and Regulations
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[FR Doc. 2017–07982 Filed 4–19–17; 8:45 am]
BILLING CODE 9110–04–P
DEPARTMENT OF EDUCATION
34 CFR Part 36
RIN 1801–AA16
[Docket ID ED–2016–OGC–0051]
Adjustment of Civil Monetary Penalties
for Inflation
Department of Education.
Final regulations.
AGENCY:
ACTION:
The Department of Education
(Department) issues these final
regulations to adjust the Department’s
civil monetary penalties (CMPs) for
inflation. An initial ‘‘catch-up’’
adjustment was required by the Federal
Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (2015 Act),
which amended the Federal Civil
Penalties Inflation Adjustment Act of
1990 (Inflation Adjustment Act). These
final regulations provide the 2017
annual inflation adjustments to the
initial ‘‘catch-up’’ adjustments we made
on August 1, 2016, through an interim
final rule (IFR).
DATES: These regulations are effective
April 20, 2017. The adjusted CMPs
established by these regulations are
applicable only to civil penalties
assessed after April 20, 2017 whose
associated violations occurred after
November 2, 2015. For a description of
the CMPs applicable under other
circumstances, see the SUPPLEMENTARY
INFORMATION section.
FOR FURTHER INFORMATION CONTACT:
Levon Schlichter, U.S. Department of
Education, Office of the General
Counsel, 400 Maryland Avenue SW.,
Room 6E235, Washington, DC 20202–
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SUMMARY:
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2241. Telephone: (202) 453–6387 or by
email: levon.schlichter@ed.gov.
If you use a telecommunications
device for the deaf or a text telephone,
call the Federal Relay Service, toll free,
at 1–800–877–8339.
Individuals with disabilities can
obtain this document in an accessible
format (e.g., Braille, large print,
audiotape, or compact disc) on request
to the contact person listed in this
section.
SUPPLEMENTARY INFORMATION:
Background:
The Inflation Adjustment Act (28
U.S.C. 2461 note) provides for the
regular evaluation of CMPs to ensure
that they continue to maintain their
deterrent value. The Inflation
Adjustment Act required that each
agency issue regulations to adjust its
CMPs beginning in 1996 and at least
every four years thereafter. The
Department published its most recent
cost adjustment to each CMP in the
Federal Register on October 2, 2012 (77
FR 60047), and those adjustments
became effective on the date of
publication.
The 2015 Act (section 701 of Pub. L.
114–74) amended the Inflation
Adjustment Act to improve the
effectiveness of CMPs and to maintain
their deterrent effect.
The 2015 Act requires agencies to: (1)
Adjust the level of CMPs with an initial
‘‘catch-up’’ adjustment through an IFR;
and (2) make subsequent annual
adjustments for inflation. Catch-up
adjustments are based on the percentage
change between the Consumer Price
Index for all Urban Consumers (CPI–U)
for the month of October in the year the
penalty was last adjusted by a statute
other than the Inflation Adjustment Act,
and the October 2015 CPI–U. Annual
inflation adjustments are based on the
percentage change between the October
CPI–U preceding the date of each
statutory adjustment, and the prior
year’s October CPI–U.1
The Department published an IFR
with the initial ‘‘catch-up’’ penalty
adjustment amounts on August 1, 2016
(81 FR 50321). These adjustments are
currently in effect and apply to all CMPs
covered by the Inflation Adjustment
Act. We did not receive any public
comments on this IFR.
A CMP is defined in the Inflation
Adjustment Act as any penalty, fine, or
other sanction that is (1) for a specific
monetary amount as provided by
Federal law, or has a maximum amount
1 If a statute that created a penalty is amended to
change the penalty amount, the Department does
not adjust the penalty in the year following the
adjustment.
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18559
provided for by Federal law; (2)
assessed or enforced by an agency
pursuant to Federal law; and (3)
assessed or enforced pursuant to an
administrative proceeding or a civil
action in the Federal courts.
The formula for the amount of a CMP
inflation adjustment is prescribed by
law, as explained in OMB Memorandum
M–16–06 (February 24, 2016), and is not
subject to the exercise of discretion by
the Secretary of Education (Secretary).
Under the 2015 Act, the Department
was required to use, as the baseline for
adjusting the CMPs in the IFR, the CMP
amounts as they were most recently
established or adjusted under a
provision of law other than the Inflation
Adjustment Act. In accordance with the
2015 Act, we did not use the amounts
set out in 34 CFR part 36 in 2012 in the
formula used in the IFR to adjust for
inflation because those CMP amounts
were updated pursuant to the Inflation
Adjustment Act.2 Instead, the baselines
we used in the IFR were the amounts set
out most recently in each of the statutes
that provide for civil penalties. Using
these statutory CMPs, we determined
which year those amounts were
originally enacted by Congress (or the
year the statutory amounts were last
amended by the statute that established
the penalty) and used the annual
inflation adjustment multiplier
corresponding to that year from Table A
in OMB Memorandum M–16–06. We
then rounded the number to the nearest
dollar and checked, as required by the
Inflation Adjustment Act, to see if that
adjusted amount exceeded 150 percent
of the CMP amount that was established
under 34 CFR part 36, and in effect on
November 2, 2015. If any of the amounts
exceeded 150 percent, we were required
to use the lesser amount (the 150
percent amount). All of the adjusted
amounts were less than 150 percent so
we did not have to replace any of the
amounts we calculated using the
multiplier from Table A of OMB
Memorandum M–16–06 with the lesser
amount.
In these final regulations, we adjust
each CMP amount provided in the IFR
by a factor of 1.01636, as directed by
OMB Memorandum M–17–11.
Effective Dates:
The precise penalty amount that will
apply to violations occurring before
2 As originally enacted, the Inflation Adjustment
Act limited the first increased adjustment, which
we made through regulation, to a maximum of 10
percent. This 10 percent limitation affected the
increase we last made in the 2012 rulemaking. In
the 2015 Act, Congress determined that limiting the
first adjustments to 10 percent reduced the
effectiveness of the penalties, so the 2015 Act
requires us to use the statutory amounts as our
baseline.
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April 20, 2017, the effective date of this
final rule, depends on when the
violation occurred and also when we
assessed the penalty for the violation.
For all violations occurring on or before
November 2, 2015, the applicable
penalty amount is the amount set forth
in 34 CFR 36.2 prior to August 1, 2016
(the IFR publication date). For
violations occurring after November 2,
2015, in general, there are three
potential amounts that could apply: (1)
The amount as set forth in 34 CFR 36.2
before August 1, 2016; 3 (2) the amount
Date of Assessment ......................
Assessment after April 20, 2017
(final rule publication date).
Applicable Rule ..............................
This final rule ................................
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The Department’s Civil Monetary
Penalties
The following analysis calculates new
CMPs for penalty statutes in the order
in which they appear in 34 CFR 36.2.
The 2015 Act provides that any increase
to an agency’s CMPs applies only to
CMPs that are assessed after the
effective date of the adjustments,
including those whose associated
violation predated such increase. These
regulations are effective April 20, 2017.
Therefore, the adjustments to the
Department’s CMPs made by these final
regulations apply only to violations that
are assessed after April 20, 2017.
Statute: 20 U.S.C. 1015(c)(5).
Current Regulations: The CMP for 20
U.S.C. 1015(c)(5) (Section 131(c)(5) of
the Higher Education Act of 1965, as
amended (HEA)), as last set out in
statute in 1998 (Pub. L. 105–244, title I,
§ 101(a), Oct. 7, 1998, 112 Stat. 1602), is
a fine of up to $25,000 for failure by an
institution of higher education (IHE) to
provide information on the cost of
higher education to the Commissioner
of Education Statistics. In the IFR, we
increased this amount to $36,256.
New Regulations: The new penalty for
this section is $36,849.
Reason: Using the multiplier of
1.01636 from OMB Memorandum M–
17–11, the new penalty is calculated as
follows: $36,256 × 1.01636 =
$36,849.15, which makes the adjusted
penalty $36,849, when rounded to the
nearest dollar.
Statute: 20 U.S.C. 1022d(a)(3).
Current Regulations: The CMP for 20
U.S.C. 1022d(a)(3) (Section 205(a)(3) of
the HEA), as last set out in statute in
2008 (Pub. L. 110–315, title II, § 201(2),
Aug. 14, 2008, 122 Stat. 3147), provides
for a fine of up to $27,500 for failure by
an IHE to provide information to the
State and the public regarding its
teacher-preparation programs. In the
3 There may be an unusual circumstance where
the amount set forth in the prior regulations was
superseded by a statute before August 1, 2016, in
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set forth in 34 CFR 36.2 after
publication of the IFR on August 1,
2016; or (3) the amount set forth in 34
CFR 36.2 through this final rule. The
following chart shows which amount
applies based on the assessment date for
violations after November 2, 2015:
Assessment between August 1,
2016 (IFR publication date) and
April 20, 2017 (final rule publication date).
2016 IFR .......................................
Assessment prior to August 1,
2016 (IFR publication date).
34 CFR 36.2 as it existed before
August 1, 2016.
IFR, we increased this amount to
$30,200.
New Regulations: The new penalty for
this section is $30,694.
Reason: Using the multiplier of
1.01636 from OMB Memorandum M–
17–11, the new penalty is calculated as
follows: $30,200 × 1.01636 =
$30,694.07, which makes the adjusted
penalty $30,694, when rounded to the
nearest dollar.
Statute: 20 U.S.C. 1082(g).
Current Regulations: The CMP for 20
U.S.C. 1082(g) (Section 432(g) of the
HEA), as last set out in statute in 1986
(Pub. L. 99–498, title IV, § 402(a), Oct.
17, 1986, 100 Stat. 1401), provides for
a fine of up to $25,000 for violations by
lenders and guaranty agencies of Title
IV of the HEA, which authorizes the
Federal Family Education Loan
Program. In the IFR, we increased this
amount to $53,907.
New Regulations: The new penalty for
this section is $54,789.
Reason: Using the multiplier of
1.01636 from OMB Memorandum M–
17–11, the new penalty is calculated as
follows: $53,907 × 1.01636 =
$54,788.92, which makes the adjusted
penalty $54,789, when rounded to the
nearest dollar.
Statute: 20 U.S.C. 1094(c)(3)(B).
Current Regulations: The CMP for 20
U.S.C. 1094(c)(3)(B) (Section
487(c)(3)(B) of the HEA), as set out in
statute in 1986 (Pub. L. 99–498, title IV,
§ 407(a), Oct. 17, 1986, 100 Stat. 1488),
provides for a fine of up to $25,000 for
an IHE’s violation of Title IV of the HEA
or its implementing regulations. Title IV
authorizes various programs of student
financial assistance. In the IFR, we
increased this amount to $53,907.
New Regulations: The new penalty for
this section is $54,789.
Reason: Using the multiplier of
1.01636 from OMB Memorandum M–
17–11, the new penalty is calculated as
follows: $53,907 × 1.01636 =
$54,788.92, which makes the adjusted
penalty $54,789, when rounded to the
nearest dollar.
Statute: 20 U.S.C. 1228c(c)(2)(E).
Current Regulations: The CMP for 20
U.S.C. 1228c(c)(2)(E) (Section 429 of the
General Education Provisions Act), as
set out in statute in 1994 (Pub. L. 103–
382, title II, § 238, Oct. 20, 1994, 108
Stat. 3918), provides for a fine of up to
$1,000 for an educational organization’s
failure to disclose certain information to
minor students and their parents. In the
IFR, we increased this amount to
$1,591.
New Regulations: The new penalty for
this section is $1,617.
Reason: Using the multiplier of
1.01636 from OMB Memorandum M–
17–11, the new penalty is calculated as
follows: $1,591 × 1.01636 = $1,617.03,
which makes the adjusted penalty
$1,617, when rounded to the nearest
dollar.
Statute: 31 U.S.C. 1352(c)(1) and
(c)(2)(A).
Current Regulations: The CMPs for 31
U.S.C. 1352(c)(1) and (c)(2)(A), as set
out in statute in 1989, provide for a fine
of $10,000 to $100,000 for recipients of
Government grants, contracts, etc. that
improperly lobby Congress or the
Executive Branch with respect to the
award of Government grants and
contracts. In the IFR, we increased these
amounts to $18,936 to $189,361.
New Regulations: The new penalties
for these sections are $19,246 to
$192,459.
Reason: Using the multiplier of
1.01636 from OMB Memorandum M–
17–11, the new minimum penalty is
calculated as follows: $18,936 × 1.01636
= $19,245.79, which makes the adjusted
penalty $19,246, when rounded to the
nearest dollar. The new maximum
penalty is calculated as follows:
$189,361.00 × 1.01636 = $192,458.95,
which case the statutory amount would apply.
However, we have been unable to identify an
instance where a statutory amendment superseded
the regulatory amount in this timeframe.
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which makes the adjusted penalty
$192,459, when rounded to the nearest
dollar.
Statute: 31 U.S.C. 3802(a)(1) and
(a)(2).
Current Regulations: The CMPs for 31
U.S.C. 3802(a)(1) and (a)(2), as set out in
statute in 1986 (Pub. L. 99–509, title VI,
§ 6103(a), Oct. 21, 1986, 100 Stat. 1937),
provide for a fine of up to $5,000 for
false claims and statements made to the
Government. In the IFR, we increased
this amount to $10,781.
New Regulations: The new penalty for
this section is $10,957.
Reason: Using the multiplier of
1.01636 from OMB Memorandum M–
17–11, the new penalty is calculated as
follows: $10,781 × 1.01636 =
$10,957.38, which makes the adjusted
penalty $10,957, when rounded to the
nearest dollar.
Executive Orders 12866, 13563, and
13771
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Regulatory Impact Analysis
Under Executive Order 12866, the
Secretary must determine whether this
regulatory action is ‘‘significant’’ and,
therefore, subject to the requirements of
the Executive order and subject to
review by the Office of Management and
Budget (OMB). Section 3(f) of Executive
Order 12866 defines a significant
regulatory action as an action likely to
result in a rule that may—
(1) Have an annual effect on the
economy of $100 million or more, or
adversely affect a sector of the economy;
productivity; competition; jobs; the
environment; public health or safety; or
State, local, or tribal governments or
communities in a material way (also
referred to as ‘‘economically significant’’
regulations);
(2) Create serious inconsistency or
otherwise interfere with an action taken
or planned by another agency;
(3) Materially alter the budgetary
impacts of entitlement grants, user fees,
or loan programs or the rights and
obligations of recipients thereof; or
(4) Raise novel legal or policy issues
arising out of legal mandates, the
President’s priorities, or the principles
stated in the Executive order.
Based on the number and amount of
penalties imposed under the CMPs
amended in these final regulations, we
have determined that this regulatory
action will have none of the economic
impacts described under the Executive
order. These final regulations are
required by statute, the adjusted CMPs
are not at the Secretary’s discretion,
and, accordingly, these final regulations
do not have any of the policy impacts
described under the Executive order.
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Because these final regulations are not
a significant regulatory action, they are
not subject to review by OMB under
section 3(f) of Executive Order 12866.
We have also reviewed these
regulations under Executive Order
13563, which supplements and
explicitly reaffirms the principles,
structures, and definitions governing
regulatory review established in
Executive Order 12866. To the extent
permitted by law, Executive Order
13563 requires that an agency—
(1) Propose or adopt regulations only
upon a reasoned determination that
their benefits justify their costs
(recognizing that some benefits and
costs are difficult to quantify);
(2) Tailor its regulations to impose the
least burden on society, consistent with
obtaining regulatory objectives and
taking into account, among other things,
and to the extent practicable, the costs
of cumulative regulations;
(3) In choosing among alternative
regulatory approaches, select those
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety,
and other advantages; distributive
impacts; and equity);
(4) To the extent feasible, specify
performance objectives, rather than the
behavior or manner of compliance a
regulated entity must adopt; and
(5) Identify and assess available
alternatives to direct regulation,
including economic incentives—such as
user fees or marketable permits—to
encourage the desired behavior, or
providing information that enables the
public to make choices.
Executive Order 13563 also requires
an agency ‘‘to use the best available
techniques to quantify anticipated
present and future benefits and costs as
accurately as possible.’’ The Office of
Information and Regulatory Affairs of
OMB has emphasized that these
techniques may include ‘‘identifying
changing future compliance costs that
might result from technological
innovation or anticipated behavioral
changes.’’
We are issuing these final regulations
as required by statute. The Secretary has
no discretion to consider alternative
approaches as delineated in the
Executive order. Based on this analysis
and the reasons stated in the preamble,
the Department believes that these final
regulations are consistent with the
principles in Executive Order 13563.
Under Executive Order 13771, if the
Department proposes for notice and
comment or otherwise promulgates a
new regulation that is a significant
regulatory action under Executive Order
12866, it must identify two existing
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regulations for elimination. For Fiscal
Year 2017, any new incremental costs
associated with the new regulation must
be fully offset by the elimination of
existing costs through the repeal of at
least two regulations. These final
regulations are not a significant
regulatory action. Therefore, the
requirements of Executive Order 13771
do not apply.
Waiver of Rulemaking and Delayed
Effective Date
Under the Administrative Procedure
Act (APA) (5 U.S.C. 553), the
Department generally offers interested
parties the opportunity to comment on
proposed regulations. However, the
APA provides that an agency is not
required to conduct notice-andcomment rulemaking when the agency,
for good cause, finds that notice and
public comment thereon are
impracticable, unnecessary, or contrary
to the public interest (5 U.S.C.
553(b)(B)). There is good cause to waive
rulemaking here as unnecessary.
Rulemaking is ‘‘unnecessary’’ in those
situations in which ‘‘the administrative
rule is a routine determination,
insignificant in nature and impact, and
inconsequential to the industry and to
the public.’’ Utility Solid Waste
Activities Group v. EPA, 236 F.3d 749,
755 (D.C. Cir. 2001), quoting U.S.
Department of Justice, Attorney
General’s Manual on the Administrative
Procedure Act 31 (1947) and South
Carolina v. Block, 558 F. Supp. 1004,
1016 (D.S.C. 1983).
These regulations merely implement
the statutory mandate to adjust CMPs
for inflation. The regulations reflect
administrative computations performed
by the Department as prescribed by the
statute, and the Secretary has no
discretion in determining the new
penalties.
The APA also generally requires that
regulations be published at least 30 days
before their effective date, unless the
agency has good cause to implement its
regulations sooner (5 U.S.C. 553(d)(3)).
Again, because these final regulations
merely implement non-discretionary
administrative computations, there is
good cause to make them effective on
the day they are published.
Regulatory Flexibility Act Certification
The Secretary certifies that these
regulations will not have a significant
economic impact on a substantial
number of small entities. The formula
for the amount of the inflation
adjustments is prescribed by statute and
is not subject to the Secretary’s
discretion. These CMPs are infrequently
imposed by the Secretary, and the
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regulations do not involve any special
considerations that might affect the
imposition of CMPs on small entities.
Paperwork Reduction Act of 1995
These regulations do not contain any
information collection requirements.
Intergovernmental Review
This program is not subject to
Executive Order 12372 and the
regulations in 34 CFR part 79.
Assessment of Educational Impact
Based on our own review, we have
determined that these regulations do not
require transmission of information that
any other agency or authority of the
United States gathers or makes
available.
Electronic Access to This Document:
The official version of this document is
the document published in the Federal
Register. Free Internet access to the
official edition of the Federal Register
and the Code of Federal Regulations is
available via the Federal Digital System
at: www.gpo.gov/fdsys. At this site you
can view this document, as well as all
other documents of this Department
published in the Federal Register, in
text or Portable Document Format
(PDF). To use PDF you must have
Adobe Acrobat Reader, which is
available free at the site.
You may also access documents of the
Department published in the Federal
Register by using the article search
feature at: www.federalregister.gov.
Specifically, through the advanced
search feature at this site, you can limit
your search to documents published by
the Department.
Dated: April 17, 2017.
Betsy DeVos,
Secretary of Education.
List of Subjects in 34 CFR Part 36
§ 36.2
Claims, Fraud, Penalties.
For the reasons discussed in the
preamble, the Secretary amends part 36
of title 34 of the Code of Federal
Regulations as follows:
PART 36—ADJUSTMENT OF CIVIL
MONETARY PENALTIES FOR
INFLATION
1. The authority citation for part 36
continues to read as follows:
■
Authority: 20 U.S.C. 1221e–3 and 3474; 28
U.S.C. 2461 note, as amended by § 701 of
Pub. Law 114–74, unless otherwise noted.
2. Section 36.2 is amended by revising
Table I to read as follows:
■
*
Penalty adjustment.
*
*
*
*
TABLE I, SECTION 36.2—CIVIL MONETARY PENALTY INFLATION ADJUSTMENTS
New maximum (and
minimum, if applicable)
penalty amount
Statute
Description
20 U.S.C. 1015(c)(5) (Section 131(c)(5) of the Higher
Education Act of 1965 (HEA)).
Provides for a fine, as set by Congress in 1998, of up
to $25,000 for failure by an institution of higher education (IHE) to provide information on the cost of
higher education to the Commissioner of Education
Statistics.
Provides for a fine, as set by Congress in 2008, of up
to $27,500 for failure by an IHE to provide information to the State and the public regarding its teacherpreparation programs.
Provides for a civil penalty, as set by Congress in
1986, of up to $25,000 for violations by lenders and
guaranty agencies of Title IV of the HEA, which authorizes the Federal Family Education Loan Program.
Provides for a civil penalty, as set by Congress in
1986, of up to $25,000 for an IHE’s violation of Title
IV of the HEA, which authorizes various programs of
student financial assistance.
Provides for a civil penalty, as set by Congress in
1994, of up to $1,000 for an educational organization’s failure to disclose certain information to minor
students and their parents.
Provides for a civil penalty, as set by Congress in
1989, of $10,000 to $100,000 for recipients of Government grants, contracts, etc. that improperly lobby
Congress or the Executive Branch with respect to the
award of Government grants and contracts.
Provides for a civil penalty, as set by Congress in
1986, of up to $5,000 for false claims and statements
made to the Government.
20 U.S.C. 1022d(a)(3) (Section 205(a)(3) of the HEA) ....
20 U.S.C. 1082(g) (Section 432(g) of the HEA) ...............
20 U.S.C. 1094(c)(3)(B) (Section 487(c)(3)(B) of the
HEA).
20 U.S.C. 1228c(c)(2)(E) (Section 429 of the General
Education Provisions Act).
31 U.S.C. 1352(c)(1) and (c)(2)(A) ...................................
31 U.S.C. 3802(a)(1) and (a)(2) .......................................
*
*
*
*
*
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$36,849
30,694
54,789
54,789
1,617
19,246 to 192,459
10,957
Federal Register / Vol. 82, No. 75 / Thursday, April 20, 2017 / Rules and Regulations
LIBRARY OF CONGRESS
Copyright Royalty Board
37 CFR Parts 301, 350 and 351
[Docket No. 16–CRB–0015–RM]
Procedural Regulations for the
Copyright Royalty Board:
Organization, General Administrative
Provisions
Copyright Royalty Board,
Library of Congress.
ACTION: Final rule.
AGENCY:
The Copyright Royalty Judges
are amending and augmenting
procedural regulations governing the
filing and delivery of documents to
allow for electronic filing of documents.
DATES: Effective April 20, 2017.
FOR FURTHER INFORMATION CONTACT:
Kimberly Whittle, Attorney Advisor, by
telephone at (202) 707–7658 or email at
crb@loc.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Introduction
On November 23, 2016, the Copyright
Royalty Judges (Judges) published a
proposed rule in the Federal Register
seeking comments on proposed
amendments relating to an automated
system, designated ‘‘eCRB.’’ The rules
address electronic filing of documents
and related matters such as the form and
content of documents that are filed with
the Judges.1 The Judges received
comments from the following interested
parties: The Commercial Television
Claimants (CTV); 2 Independent
Producers Group and Multigroup
Claimants (IPG); Joint Sports Claimants
(JSC); 3 the Music Community
1 See
81 FR 84526.
does not identify its constituent members
in its comments. In a Petition to Participate filed in
a recent cable distribution proceeding, CTV is
identified as ‘‘U.S. commercial television broadcast
stations’’ represented by the National Association of
Broadcasters, through its counsel (the same counsel
that prepared the CTV Comments). See Joint
Petition to Participate of the National Association
of Broadcasters at 1, Docket No. 14–CB–0010–CD
(2013). The Judges assume that ‘‘CTV’’ denominates
the same or a similar group of entities in this
rulemaking. It would have assisted the Judges and
provided a more complete record if the CTV
Comments had identified CTV and its interest in
this rulemaking.
3 The JSC is comprised of Office of the
Commissioner of Baseball, National Football
League, National Basketball Association, Women’s
National Basketball Association, National Hockey
League, and the National Collegiate Athletic
Association. The JSC did not comment on any
specific provisions, merely noting that they ‘‘have
no objection or suggested revisions to the proposed
rules.’’ Comments of the Joint Sports Claimants at
1.
pmangrum on DSK3GDR082PROD with RULES
2 CTV
VerDate Sep<11>2014
16:08 Apr 19, 2017
Jkt 241001
Participants (Music Community); 4 the
Performing Rights Organizations (Music
PROs); 5 the Program Suppliers; 6 and
the Settling Devotional Claimants
(SDC).7 All interested parties supported
the Judges’ decision to implement an
electronic filing system and to adopt
rules concerning the use of that system,
though most recommended some
changes to the proposed rules.
II. Comments on Proposed Rules and
Judges’ Findings
The Judges address the comments on
a section-by-section basis. The Judges
will adopt without change those
sections that no interested party
commented on.8
Section 350.3(a)(1): Format—Caption
and Description
The Music Community recommended
that the proposed rule be modified so
that filers would not be required to put
a footer on the first page of a filed
document, noting that the first page
includes a caption that conveys the
4 The Music Community Participants consist of
SoundExchange, Inc., the Recording Industry
Association of America, Inc., the American
Association of Independent Music, the American
Federation of Musicians of the United States and
Canada, The Screen Actors Guild—American
Federation of Television and Radio Artists, and the
National Music Publishers’ Association.
5 The Music PROs consist of Broadcast Music,
Inc., the American Society of Composers, Authors
and Publishers, and SESAC, Inc.
6 The Program Suppliers are comprised of The
Motion Picture Association of America, Inc., its
member companies and ‘‘other producers and/or
syndicators of syndicated movies, series, specials,
and non-team sports broadcast by television
stations.’’ Program Suppliers Comments at 1.
7 The Settling Devotional Claimants are
comprised of: Amazing Facts, Inc., American
Religious Town Hall Meeting, Inc., Catholic
Communications Corporation, Christian Television
Network, Inc., The Christian Broadcasting Network,
Inc., Coral Ridge Ministries Media, Inc.,
Cornerstone Television, Inc., Cottonwood Christian
Center, Crenshaw Christian Center, Crystal
Cathedral Ministries, Inc., Family Worship Center
Church, Inc. (D/B/A Jimmy Swaggart Ministries),
Free Chapel Worship Center, Inc., In Touch
Ministries, Inc., It Is Written, Inc., John Hagee
Ministries, Inc. (aka Global Evangelism Television),
Joyce Meyer Ministries, Inc. (F/K/A Life In The
Word, Inc.), Kerry Shook Ministries (aka Fellowship
of the Woodlands), Lakewood Church (aka Joel
Osteen Ministries), Liberty Broadcasting Network,
Inc., Living Word Christian Center, Living Church
of God (International), Inc., Messianic Vision, Inc.,
New Psalmist Baptist Church, Oral Roberts
Evangelistic Association, Inc., Philadelphia Church
of God, Inc., RBC Ministries, Rhema Bible Church
(aka Kenneth Hagin Ministries), Ron Phillips
Ministries, St. Ann’s Media, The Potter’s House Of
Dallas, Inc. (d/b/a T.D. Jakes Ministries), Word of
God Fellowship, Inc., d/b/a Daystar Television
Network, Billy Graham Evangelistic Association,
and Zola Levitt Ministries. SDC Comments at 1 n.1.
8 The Judges received no comments on proposed
sections 301.2, 350.1, 350.2, 350.3(a)(3), 350.3(b)(1),
350.3(b)(4), 350.3(b)(7), 350.5(b), 350.5(d), 350.5(e),
350.5(f), 350.5(g), 350.6(d), 350.6(e), 350.7(a),
350.7(b), and 350.8.
PO 00000
Frm 00017
Fmt 4700
Sfmt 4700
18563
same information that would be in the
footer. Comments of the Music
Community Participants (Music
Community Comments) at 9. The Judges
find this recommendation to be
reasonable and will adopt it in the final
rule.
Commenter Music PROs
recommended that the requirement for a
footer be eliminated from the rules. In
the view of the Music PROs, eCRB
should be designed to add a footer
automatically. Comments of Performing
Rights Organizations (Music PRO
Comments) at 2–3.
eCRB will add a stamp to the first
page of each filed document that
includes, inter alia, the date and time
the document was filed. It will not add
a footer to each page, however. While
the Judges may revisit this design choice
in a future revision of the system, filers
will be required to add footers to their
documents for the time being. The
Judges note that the burden of adding
footers to documents created in a word
processing program is minimal.
However, the Music PROs’ concern is
well-taken that adding footers to some
document exhibits (e.g., exhibits that are
reproductions of paper documents)
might not be technologically feasible.
The Judges will adopt language limiting
the application of the requirement for
including footers on exhibits to the
extent it is technologically feasible to do
so using software available to the
general public.
Section 350.3(a)(2): Format—Page
Layout
The Music PROs object to this
provision’s requirement that exhibits or
attachments to documents reflect the
docket number of the proceeding and
that the pages are numbered
appropriately, opining that ‘‘[m]ost if
not all electronic filing systems
automatically create a legend on each
page of a filed document. . . .’’ Music
PRO Comments at 3. eCRB will not
create a legend on each page of a filed
document. Consequently, the Judges
will retain the requirement in the final
rule. As discussed above, however, the
Judges recognize that in certain
instances (e.g., when attachments or
exhibits are reproductions of paper
documents) there may be technological
impediments to adding footers to an
attachment or exhibit.9 The Judges will,
9 The Judges note that Adobe Acrobat software
permits users to add headers and footers to scanned
E:\FR\FM\20APR1.SGM
Continued
20APR1
]]>Agencies
[Federal Register Volume 82, Number 75 (Thursday, April 20, 2017)]
[Rules and Regulations]
[Pages 18559-18563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-08034]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF EDUCATION
34 CFR Part 36
RIN 1801-AA16
[Docket ID ED-2016-OGC-0051]
Adjustment of Civil Monetary Penalties for Inflation
AGENCY: Department of Education.
ACTION: Final regulations.
-----------------------------------------------------------------------
SUMMARY: The Department of Education (Department) issues these final
regulations to adjust the Department's civil monetary penalties (CMPs)
for inflation. An initial ``catch-up'' adjustment was required by the
Federal Civil Penalties Inflation Adjustment Act Improvements Act of
2015 (2015 Act), which amended the Federal Civil Penalties Inflation
Adjustment Act of 1990 (Inflation Adjustment Act). These final
regulations provide the 2017 annual inflation adjustments to the
initial ``catch-up'' adjustments we made on August 1, 2016, through an
interim final rule (IFR).
DATES: These regulations are effective April 20, 2017. The adjusted
CMPs established by these regulations are applicable only to civil
penalties assessed after April 20, 2017 whose associated violations
occurred after November 2, 2015. For a description of the CMPs
applicable under other circumstances, see the SUPPLEMENTARY INFORMATION
section.
FOR FURTHER INFORMATION CONTACT: Levon Schlichter, U.S. Department of
Education, Office of the General Counsel, 400 Maryland Avenue SW., Room
6E235, Washington, DC 20202-2241. Telephone: (202) 453-6387 or by
email: levon.schlichter@ed.gov.
If you use a telecommunications device for the deaf or a text
telephone, call the Federal Relay Service, toll free, at 1-800-877-
8339.
Individuals with disabilities can obtain this document in an
accessible format (e.g., Braille, large print, audiotape, or compact
disc) on request to the contact person listed in this section.
SUPPLEMENTARY INFORMATION:
Background:
The Inflation Adjustment Act (28 U.S.C. 2461 note) provides for the
regular evaluation of CMPs to ensure that they continue to maintain
their deterrent value. The Inflation Adjustment Act required that each
agency issue regulations to adjust its CMPs beginning in 1996 and at
least every four years thereafter. The Department published its most
recent cost adjustment to each CMP in the Federal Register on October
2, 2012 (77 FR 60047), and those adjustments became effective on the
date of publication.
The 2015 Act (section 701 of Pub. L. 114-74) amended the Inflation
Adjustment Act to improve the effectiveness of CMPs and to maintain
their deterrent effect.
The 2015 Act requires agencies to: (1) Adjust the level of CMPs
with an initial ``catch-up'' adjustment through an IFR; and (2) make
subsequent annual adjustments for inflation. Catch-up adjustments are
based on the percentage change between the Consumer Price Index for all
Urban Consumers (CPI-U) for the month of October in the year the
penalty was last adjusted by a statute other than the Inflation
Adjustment Act, and the October 2015 CPI-U. Annual inflation
adjustments are based on the percentage change between the October CPI-
U preceding the date of each statutory adjustment, and the prior year's
October CPI-U.\1\
---------------------------------------------------------------------------
\1\ If a statute that created a penalty is amended to change the
penalty amount, the Department does not adjust the penalty in the
year following the adjustment.
---------------------------------------------------------------------------
The Department published an IFR with the initial ``catch-up''
penalty adjustment amounts on August 1, 2016 (81 FR 50321). These
adjustments are currently in effect and apply to all CMPs covered by
the Inflation Adjustment Act. We did not receive any public comments on
this IFR.
A CMP is defined in the Inflation Adjustment Act as any penalty,
fine, or other sanction that is (1) for a specific monetary amount as
provided by Federal law, or has a maximum amount provided for by
Federal law; (2) assessed or enforced by an agency pursuant to Federal
law; and (3) assessed or enforced pursuant to an administrative
proceeding or a civil action in the Federal courts.
The formula for the amount of a CMP inflation adjustment is
prescribed by law, as explained in OMB Memorandum M-16-06 (February 24,
2016), and is not subject to the exercise of discretion by the
Secretary of Education (Secretary). Under the 2015 Act, the Department
was required to use, as the baseline for adjusting the CMPs in the IFR,
the CMP amounts as they were most recently established or adjusted
under a provision of law other than the Inflation Adjustment Act. In
accordance with the 2015 Act, we did not use the amounts set out in 34
CFR part 36 in 2012 in the formula used in the IFR to adjust for
inflation because those CMP amounts were updated pursuant to the
Inflation Adjustment Act.\2\ Instead, the baselines we used in the IFR
were the amounts set out most recently in each of the statutes that
provide for civil penalties. Using these statutory CMPs, we determined
which year those amounts were originally enacted by Congress (or the
year the statutory amounts were last amended by the statute that
established the penalty) and used the annual inflation adjustment
multiplier corresponding to that year from Table A in OMB Memorandum M-
16-06. We then rounded the number to the nearest dollar and checked, as
required by the Inflation Adjustment Act, to see if that adjusted
amount exceeded 150 percent of the CMP amount that was established
under 34 CFR part 36, and in effect on November 2, 2015. If any of the
amounts exceeded 150 percent, we were required to use the lesser amount
(the 150 percent amount). All of the adjusted amounts were less than
150 percent so we did not have to replace any of the amounts we
calculated using the multiplier from Table A of OMB Memorandum M-16-06
with the lesser amount.
---------------------------------------------------------------------------
\2\ As originally enacted, the Inflation Adjustment Act limited
the first increased adjustment, which we made through regulation, to
a maximum of 10 percent. This 10 percent limitation affected the
increase we last made in the 2012 rulemaking. In the 2015 Act,
Congress determined that limiting the first adjustments to 10
percent reduced the effectiveness of the penalties, so the 2015 Act
requires us to use the statutory amounts as our baseline.
---------------------------------------------------------------------------
In these final regulations, we adjust each CMP amount provided in
the IFR by a factor of 1.01636, as directed by OMB Memorandum M-17-11.
Effective Dates:
The precise penalty amount that will apply to violations occurring
before
[[Page 18560]]
April 20, 2017, the effective date of this final rule, depends on when
the violation occurred and also when we assessed the penalty for the
violation. For all violations occurring on or before November 2, 2015,
the applicable penalty amount is the amount set forth in 34 CFR 36.2
prior to August 1, 2016 (the IFR publication date). For violations
occurring after November 2, 2015, in general, there are three potential
amounts that could apply: (1) The amount as set forth in 34 CFR 36.2
before August 1, 2016; \3\ (2) the amount set forth in 34 CFR 36.2
after publication of the IFR on August 1, 2016; or (3) the amount set
forth in 34 CFR 36.2 through this final rule. The following chart shows
which amount applies based on the assessment date for violations after
November 2, 2015:
---------------------------------------------------------------------------
\3\ There may be an unusual circumstance where the amount set
forth in the prior regulations was superseded by a statute before
August 1, 2016, in which case the statutory amount would apply.
However, we have been unable to identify an instance where a
statutory amendment superseded the regulatory amount in this
timeframe.
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Date of Assessment................... Assessment after April Assessment between Assessment prior to
20, 2017 (final rule August 1, 2016 (IFR August 1, 2016 (IFR
publication date). publication date) and publication date).
April 20, 2017 (final
rule publication date).
Applicable Rule...................... This final rule........ 2016 IFR............... 34 CFR 36.2 as it
existed before August
1, 2016.
----------------------------------------------------------------------------------------------------------------
The Department's Civil Monetary Penalties
The following analysis calculates new CMPs for penalty statutes in
the order in which they appear in 34 CFR 36.2. The 2015 Act provides
that any increase to an agency's CMPs applies only to CMPs that are
assessed after the effective date of the adjustments, including those
whose associated violation predated such increase. These regulations
are effective April 20, 2017. Therefore, the adjustments to the
Department's CMPs made by these final regulations apply only to
violations that are assessed after April 20, 2017.
Statute: 20 U.S.C. 1015(c)(5).
Current Regulations: The CMP for 20 U.S.C. 1015(c)(5) (Section
131(c)(5) of the Higher Education Act of 1965, as amended (HEA)), as
last set out in statute in 1998 (Pub. L. 105-244, title I, Sec.
101(a), Oct. 7, 1998, 112 Stat. 1602), is a fine of up to $25,000 for
failure by an institution of higher education (IHE) to provide
information on the cost of higher education to the Commissioner of
Education Statistics. In the IFR, we increased this amount to $36,256.
New Regulations: The new penalty for this section is $36,849.
Reason: Using the multiplier of 1.01636 from OMB Memorandum M-17-
11, the new penalty is calculated as follows: $36,256 x 1.01636 =
$36,849.15, which makes the adjusted penalty $36,849, when rounded to
the nearest dollar.
Statute: 20 U.S.C. 1022d(a)(3).
Current Regulations: The CMP for 20 U.S.C. 1022d(a)(3) (Section
205(a)(3) of the HEA), as last set out in statute in 2008 (Pub. L. 110-
315, title II, Sec. 201(2), Aug. 14, 2008, 122 Stat. 3147), provides
for a fine of up to $27,500 for failure by an IHE to provide
information to the State and the public regarding its teacher-
preparation programs. In the IFR, we increased this amount to $30,200.
New Regulations: The new penalty for this section is $30,694.
Reason: Using the multiplier of 1.01636 from OMB Memorandum M-17-
11, the new penalty is calculated as follows: $30,200 x 1.01636 =
$30,694.07, which makes the adjusted penalty $30,694, when rounded to
the nearest dollar.
Statute: 20 U.S.C. 1082(g).
Current Regulations: The CMP for 20 U.S.C. 1082(g) (Section 432(g)
of the HEA), as last set out in statute in 1986 (Pub. L. 99-498, title
IV, Sec. 402(a), Oct. 17, 1986, 100 Stat. 1401), provides for a fine
of up to $25,000 for violations by lenders and guaranty agencies of
Title IV of the HEA, which authorizes the Federal Family Education Loan
Program. In the IFR, we increased this amount to $53,907.
New Regulations: The new penalty for this section is $54,789.
Reason: Using the multiplier of 1.01636 from OMB Memorandum M-17-
11, the new penalty is calculated as follows: $53,907 x 1.01636 =
$54,788.92, which makes the adjusted penalty $54,789, when rounded to
the nearest dollar.
Statute: 20 U.S.C. 1094(c)(3)(B).
Current Regulations: The CMP for 20 U.S.C. 1094(c)(3)(B) (Section
487(c)(3)(B) of the HEA), as set out in statute in 1986 (Pub. L. 99-
498, title IV, Sec. 407(a), Oct. 17, 1986, 100 Stat. 1488), provides
for a fine of up to $25,000 for an IHE's violation of Title IV of the
HEA or its implementing regulations. Title IV authorizes various
programs of student financial assistance. In the IFR, we increased this
amount to $53,907.
New Regulations: The new penalty for this section is $54,789.
Reason: Using the multiplier of 1.01636 from OMB Memorandum M-17-
11, the new penalty is calculated as follows: $53,907 x 1.01636 =
$54,788.92, which makes the adjusted penalty $54,789, when rounded to
the nearest dollar.
Statute: 20 U.S.C. 1228c(c)(2)(E).
Current Regulations: The CMP for 20 U.S.C. 1228c(c)(2)(E) (Section
429 of the General Education Provisions Act), as set out in statute in
1994 (Pub. L. 103-382, title II, Sec. 238, Oct. 20, 1994, 108 Stat.
3918), provides for a fine of up to $1,000 for an educational
organization's failure to disclose certain information to minor
students and their parents. In the IFR, we increased this amount to
$1,591.
New Regulations: The new penalty for this section is $1,617.
Reason: Using the multiplier of 1.01636 from OMB Memorandum M-17-
11, the new penalty is calculated as follows: $1,591 x 1.01636 =
$1,617.03, which makes the adjusted penalty $1,617, when rounded to the
nearest dollar.
Statute: 31 U.S.C. 1352(c)(1) and (c)(2)(A).
Current Regulations: The CMPs for 31 U.S.C. 1352(c)(1) and
(c)(2)(A), as set out in statute in 1989, provide for a fine of $10,000
to $100,000 for recipients of Government grants, contracts, etc. that
improperly lobby Congress or the Executive Branch with respect to the
award of Government grants and contracts. In the IFR, we increased
these amounts to $18,936 to $189,361.
New Regulations: The new penalties for these sections are $19,246
to $192,459.
Reason: Using the multiplier of 1.01636 from OMB Memorandum M-17-
11, the new minimum penalty is calculated as follows: $18,936 x 1.01636
= $19,245.79, which makes the adjusted penalty $19,246, when rounded to
the nearest dollar. The new maximum penalty is calculated as follows:
$189,361.00 x 1.01636 = $192,458.95,
[[Page 18561]]
which makes the adjusted penalty $192,459, when rounded to the nearest
dollar.
Statute: 31 U.S.C. 3802(a)(1) and (a)(2).
Current Regulations: The CMPs for 31 U.S.C. 3802(a)(1) and (a)(2),
as set out in statute in 1986 (Pub. L. 99-509, title VI, Sec. 6103(a),
Oct. 21, 1986, 100 Stat. 1937), provide for a fine of up to $5,000 for
false claims and statements made to the Government. In the IFR, we
increased this amount to $10,781.
New Regulations: The new penalty for this section is $10,957.
Reason: Using the multiplier of 1.01636 from OMB Memorandum M-17-
11, the new penalty is calculated as follows: $10,781 x 1.01636 =
$10,957.38, which makes the adjusted penalty $10,957, when rounded to
the nearest dollar.
Executive Orders 12866, 13563, and 13771
Regulatory Impact Analysis
Under Executive Order 12866, the Secretary must determine whether
this regulatory action is ``significant'' and, therefore, subject to
the requirements of the Executive order and subject to review by the
Office of Management and Budget (OMB). Section 3(f) of Executive Order
12866 defines a significant regulatory action as an action likely to
result in a rule that may--
(1) Have an annual effect on the economy of $100 million or more,
or adversely affect a sector of the economy; productivity; competition;
jobs; the environment; public health or safety; or State, local, or
tribal governments or communities in a material way (also referred to
as ``economically significant'' regulations);
(2) Create serious inconsistency or otherwise interfere with an
action taken or planned by another agency;
(3) Materially alter the budgetary impacts of entitlement grants,
user fees, or loan programs or the rights and obligations of recipients
thereof; or
(4) Raise novel legal or policy issues arising out of legal
mandates, the President's priorities, or the principles stated in the
Executive order.
Based on the number and amount of penalties imposed under the CMPs
amended in these final regulations, we have determined that this
regulatory action will have none of the economic impacts described
under the Executive order. These final regulations are required by
statute, the adjusted CMPs are not at the Secretary's discretion, and,
accordingly, these final regulations do not have any of the policy
impacts described under the Executive order. Because these final
regulations are not a significant regulatory action, they are not
subject to review by OMB under section 3(f) of Executive Order 12866.
We have also reviewed these regulations under Executive Order
13563, which supplements and explicitly reaffirms the principles,
structures, and definitions governing regulatory review established in
Executive Order 12866. To the extent permitted by law, Executive Order
13563 requires that an agency--
(1) Propose or adopt regulations only upon a reasoned determination
that their benefits justify their costs (recognizing that some benefits
and costs are difficult to quantify);
(2) Tailor its regulations to impose the least burden on society,
consistent with obtaining regulatory objectives and taking into
account, among other things, and to the extent practicable, the costs
of cumulative regulations;
(3) In choosing among alternative regulatory approaches, select
those approaches that maximize net benefits (including potential
economic, environmental, public health and safety, and other
advantages; distributive impacts; and equity);
(4) To the extent feasible, specify performance objectives, rather
than the behavior or manner of compliance a regulated entity must
adopt; and
(5) Identify and assess available alternatives to direct
regulation, including economic incentives--such as user fees or
marketable permits--to encourage the desired behavior, or providing
information that enables the public to make choices.
Executive Order 13563 also requires an agency ``to use the best
available techniques to quantify anticipated present and future
benefits and costs as accurately as possible.'' The Office of
Information and Regulatory Affairs of OMB has emphasized that these
techniques may include ``identifying changing future compliance costs
that might result from technological innovation or anticipated
behavioral changes.''
We are issuing these final regulations as required by statute. The
Secretary has no discretion to consider alternative approaches as
delineated in the Executive order. Based on this analysis and the
reasons stated in the preamble, the Department believes that these
final regulations are consistent with the principles in Executive Order
13563.
Under Executive Order 13771, if the Department proposes for notice
and comment or otherwise promulgates a new regulation that is a
significant regulatory action under Executive Order 12866, it must
identify two existing regulations for elimination. For Fiscal Year
2017, any new incremental costs associated with the new regulation must
be fully offset by the elimination of existing costs through the repeal
of at least two regulations. These final regulations are not a
significant regulatory action. Therefore, the requirements of Executive
Order 13771 do not apply.
Waiver of Rulemaking and Delayed Effective Date
Under the Administrative Procedure Act (APA) (5 U.S.C. 553), the
Department generally offers interested parties the opportunity to
comment on proposed regulations. However, the APA provides that an
agency is not required to conduct notice-and-comment rulemaking when
the agency, for good cause, finds that notice and public comment
thereon are impracticable, unnecessary, or contrary to the public
interest (5 U.S.C. 553(b)(B)). There is good cause to waive rulemaking
here as unnecessary.
Rulemaking is ``unnecessary'' in those situations in which ``the
administrative rule is a routine determination, insignificant in nature
and impact, and inconsequential to the industry and to the public.''
Utility Solid Waste Activities Group v. EPA, 236 F.3d 749, 755 (D.C.
Cir. 2001), quoting U.S. Department of Justice, Attorney General's
Manual on the Administrative Procedure Act 31 (1947) and South Carolina
v. Block, 558 F. Supp. 1004, 1016 (D.S.C. 1983).
These regulations merely implement the statutory mandate to adjust
CMPs for inflation. The regulations reflect administrative computations
performed by the Department as prescribed by the statute, and the
Secretary has no discretion in determining the new penalties.
The APA also generally requires that regulations be published at
least 30 days before their effective date, unless the agency has good
cause to implement its regulations sooner (5 U.S.C. 553(d)(3)). Again,
because these final regulations merely implement non-discretionary
administrative computations, there is good cause to make them effective
on the day they are published.
Regulatory Flexibility Act Certification
The Secretary certifies that these regulations will not have a
significant economic impact on a substantial number of small entities.
The formula for the amount of the inflation adjustments is prescribed
by statute and is not subject to the Secretary's discretion. These CMPs
are infrequently imposed by the Secretary, and the
[[Page 18562]]
regulations do not involve any special considerations that might affect
the imposition of CMPs on small entities.
Paperwork Reduction Act of 1995
These regulations do not contain any information collection
requirements.
Intergovernmental Review
This program is not subject to Executive Order 12372 and the
regulations in 34 CFR part 79.
Assessment of Educational Impact
Based on our own review, we have determined that these regulations
do not require transmission of information that any other agency or
authority of the United States gathers or makes available.
Electronic Access to This Document: The official version of this
document is the document published in the Federal Register. Free
Internet access to the official edition of the Federal Register and the
Code of Federal Regulations is available via the Federal Digital System
at: www.gpo.gov/fdsys. At this site you can view this document, as well
as all other documents of this Department published in the Federal
Register, in text or Portable Document Format (PDF). To use PDF you
must have Adobe Acrobat Reader, which is available free at the site.
You may also access documents of the Department published in the
Federal Register by using the article search feature at:
www.federalregister.gov. Specifically, through the advanced search
feature at this site, you can limit your search to documents published
by the Department.
List of Subjects in 34 CFR Part 36
Claims, Fraud, Penalties.
Dated: April 17, 2017.
Betsy DeVos,
Secretary of Education.
For the reasons discussed in the preamble, the Secretary amends
part 36 of title 34 of the Code of Federal Regulations as follows:
PART 36--ADJUSTMENT OF CIVIL MONETARY PENALTIES FOR INFLATION
0
1. The authority citation for part 36 continues to read as follows:
Authority: 20 U.S.C. 1221e-3 and 3474; 28 U.S.C. 2461 note, as
amended by Sec. 701 of Pub. Law 114-74, unless otherwise noted.
0
2. Section 36.2 is amended by revising Table I to read as follows:
Sec. 36.2 Penalty adjustment.
* * * * *
Table I, Section 36.2--Civil Monetary Penalty Inflation Adjustments
------------------------------------------------------------------------
New maximum (and
minimum, if
Statute Description applicable)
penalty amount
------------------------------------------------------------------------
20 U.S.C. 1015(c)(5) (Section Provides for a fine, $36,849
131(c)(5) of the Higher as set by Congress in
Education Act of 1965 (HEA)). 1998, of up to
$25,000 for failure
by an institution of
higher education
(IHE) to provide
information on the
cost of higher
education to the
Commissioner of
Education Statistics.
20 U.S.C. 1022d(a)(3) (Section Provides for a fine, 30,694
205(a)(3) of the HEA). as set by Congress in
2008, of up to
$27,500 for failure
by an IHE to provide
information to the
State and the public
regarding its teacher-
preparation programs.
20 U.S.C. 1082(g) (Section Provides for a civil 54,789
432(g) of the HEA). penalty, as set by
Congress in 1986, of
up to $25,000 for
violations by lenders
and guaranty agencies
of Title IV of the
HEA, which authorizes
the Federal Family
Education Loan
Program.
20 U.S.C. 1094(c)(3)(B) Provides for a civil 54,789
(Section 487(c)(3)(B) of the penalty, as set by
HEA). Congress in 1986, of
up to $25,000 for an
IHE's violation of
Title IV of the HEA,
which authorizes
various programs of
student financial
assistance.
20 U.S.C. 1228c(c)(2)(E) Provides for a civil 1,617
(Section 429 of the General penalty, as set by
Education Provisions Act). Congress in 1994, of
up to $1,000 for an
educational
organization's
failure to disclose
certain information
to minor students and
their parents.
31 U.S.C. 1352(c)(1) and Provides for a civil 19,246 to
(c)(2)(A). penalty, as set by 192,459
Congress in 1989, of
$10,000 to $100,000
for recipients of
Government grants,
contracts, etc. that
improperly lobby
Congress or the
Executive Branch with
respect to the award
of Government grants
and contracts.
31 U.S.C. 3802(a)(1) and Provides for a civil 10,957
(a)(2). penalty, as set by
Congress in 1986, of
up to $5,000 for
false claims and
statements made to
the Government.
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[FR Doc. 2017-08034 Filed 4-19-17; 8:45 am]
BILLING CODE 4000-01-P
