Inflation Catch-Up Adjustment of Civil Monetary Penalty Amounts Final Rule and Adjustment of Civil Monetary Penalty Amounts for 2017, 24521-24525 [2017-11056]

Download as PDF Federal Register / Vol. 82, No. 102 / Tuesday, May 30, 2017 / Rules and Regulations sradovich on DSK3GMQ082PROD with RULES Question 2: State whether you provided the information that you submitted to the CFTC pursuant to a cooperation agreement with the CFTC, or with any other agency or organization. Question 3: State whether you provided this information before you (or anyone representing you) received any request, inquiry or demand that relates to the subject matter of your submission (i) from the CFTC, (ii) in connection with an investigation, inspection or examination by any registered entity, registered futures association or selfregulatory organization, or (iii) in connection with an investigation by the Congress, or any other federal or state authority. Question 4: State whether you are currently a subject or target of a criminal investigation, or whether you have been convicted of a criminal violation, in connection with the information that you submitted to the CFTC and upon which your application for an award is based. Question 5: State whether you acquired the information that you provided to the CFTC from any individual described in Questions 1 through 4 of this section. Question 6: If you answered yes to any of Questions 1 through 5 of this section, please provide details. Section G: Entitlement to Award This section is optional. Use this section to explain the basis for your belief that you are entitled to an award in connection with your submission of information to the CFTC, or to another agency in connection with a related action. Specifically, address why you believe that you voluntarily provided the CFTC with original information that led to the successful enforcement of a judicial or administrative action filed by the CFTC, or a related action. Refer to § 165.9 of the CFTC’s regulations for further information concerning the relevant award criteria. Section 23(c)(1)(B) of the Commodity Exchange Act and § 165.9(a) of the CFTC’s regulations require the CFTC to consider the following factors in determining the amount of an award: (1) The significance of the information provided by a whistleblower to the success of the CFTC action or related action; (2) the degree of assistance provided by the whistleblower and any legal representative of the whistleblower in the CFTC action or related action; (3) the programmatic interest of the CFTC in deterring violations of the Commodity Exchange Act (including regulations under the Act) by making awards to whistleblowers who provide VerDate Sep<11>2014 17:28 May 26, 2017 Jkt 241001 information that leads to the successful enforcement of such laws; (4) whether the award otherwise enhances the CFTC’s ability to enforce the Commodity Exchange Act, protect customers, and encourage the submission of high quality information from whistleblowers; and (5) potential adverse incentives from oversize awards. Address these factors in your response as well. Section H: Claimant’s Declaration You must sign this Declaration if you are submitting this claim pursuant to the CFTC whistleblower program and wish to be considered for an award. If you are submitting your claim anonymously, you must do so through an attorney, and you must provide your attorney with your original signed Form WB–APP. Section I: Counsel Certification If you are submitting this claim pursuant to the CFTC whistleblower program anonymously, you must do so through an attorney, and your attorney must sign the Counsel Certification Section. Issued in Washington, DC, on May 22, 2017, by the Commission. Christopher J. Kirkpatrick, Secretary of the Commission. Note: The following appendix will not appear in the Code of Federal Regulations. Appendix to Whistleblower Awards Process—Commission Voting Summary On this matter, Acting Chairman Giancarlo and Commissioner Bowen voted in the affirmative. No Commissioner voted in the negative. [FR Doc. 2017–10801 Filed 5–26–17; 8:45 am] BILLING CODE 6351–01–P DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 24 CFR Parts 28, 30, 87, 180, and 3282 [Docket No. FR–5942–F–02] RIN 2501–AD79 Inflation Catch-Up Adjustment of Civil Monetary Penalty Amounts Final Rule and Adjustment of Civil Monetary Penalty Amounts for 2017 AGENCY: Office of the General Counsel, HUD. ACTION: Final rule. This rule makes final the interim final rule, published on June 15, 2016, to amend HUD’s civil monetary penalty (CMP) regulations. The interim SUMMARY: PO 00000 Frm 00067 Fmt 4700 Sfmt 4700 24521 final rule applied a new methodology to calculate civil money penalties as mandated by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, starting with a ‘‘catch up’’ adjustment to correct previous inaccuracies; removed three obsolete civil monetary penalty provisions; and made a technical change to the existing codified regulation implementing the Program Fraud Civil Remedies Act. The changes from the interim final rule made final by this final rule continue to be effective as of August 16, 2016. In addition, this rule provides for 2017 inflation adjustments of civil monetary penalty amounts required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, and makes three technical amendments and a conforming statutory change. DATES: Effective date: June 29, 2017. Applicability date: The applicability date for catch-up adjustment was August 16, 2016. FOR FURTHER INFORMATION CONTACT: Dane Narode, Associate General Counsel, Office of Program Enforcement, Department of Housing and Urban Development, 1250 Maryland Avenue SW., Suite 200, Washington, DC 20024; telephone number 202–245–4141 (this is not a tollfree number). Hearing- or speechimpaired individuals may access this number via TTY by calling the Federal Information Relay Service, toll-free, at 800–877–8339. SUPPLEMENTARY INFORMATION: I. Background A. The June 15, 2016, Interim Rule The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Act) (Pub. L. 114–74) amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note) requiring all Federal agencies to issue an interim final rule implementing changes to their civil money penalties. On June 15, 2016, pursuant to the requirements of the 2015 Act, HUD published an interim final rule for public comment, entitled ‘‘Inflation Catch-Up Adjustment of Civil Monetary Penalty Amounts’’ (81 FR 38931). The 2015 Act required agencies to make an initial catch-up adjustment by interim final rule, using a new methodology designed to correct inaccuracies in the previous method of computing inflation adjustments. In order to address these inaccuracies, the 2015 Act excluded adjustments made under the law prior to its amendment, and it provided that the initial catch-up adjustment was the percentage by which E:\FR\FM\30MYR1.SGM 30MYR1 24522 Federal Register / Vol. 82, No. 102 / Tuesday, May 30, 2017 / Rules and Regulations the Consumer Price Index (CPI) for the month of October 2015 exceeded that of the month of October of the calendar year during which the amount of the CMP was originally established or otherwise adjusted under a provision of law other than the Federal Civil Money Penalties Inflation Adjustment Act of 1990. Increases in the initial catch-up adjustment were capped at 150 percent of the amount of the CMP in effect as of the date of enactment of the 2015 Act. The interim final rule established the new adjusted penalty amount for each provision under which HUD is authorized to assess a CMP (81 FR 38935–38936); removed the obsolete CMP provisions that were codified at 24 CFR 30.30, 30.55, and 30.69 (81 FR 38935); and made a correction to 24 CFR 28.10 to include liability for causing a false claim or statement to be made, in addition to liability for making a false claim or statement (81 FR 38935). The public comment period for the interim final rule closed on August 15, 2016. The interim final rule became effective on August 16, 2016. The August 16, 2016, effective date for the amendments made by the interim final rule is unchanged. HUD received one comment in response to the interim final rule, but it was not actually relevant to any issue in the interim final rule.1 B. This 2017 Inflation Adjustment After the catch-up adjustment, the 2015 Act requires agencies to make subsequent annual adjustments for inflation ‘‘notwithstanding section 553 of title 5, United States Code.’’ Section 553 refers to the Administrative Procedure Act, which might otherwise require a delay for advance notice and opportunity for public comment on future annual inflation adjustments. The first of these subsequent adjustments is for 2017. The annual adjustment is based on the percent change between the U.S. Department of Labor’s Consumer Price Index for All Urban Consumers (‘‘CPI– U’’) for the month of October preceding the date of the adjustment, and the CPI– U for October of the prior year (28 U.S.C. 2461 note, section (5)(b)(1)). Based on that formula, the cost-of-living adjustment multiplier for 2017 is 1.01636.2 Pursuant to the 2015 Act, adjustments are rounded to the nearest dollar.3 II. This Final Rule This rule makes final the June 15, 2016, interim rule. In addition, this rule makes the required 2017 inflation adjustment. Since HUD is not applying these adjustments retroactively, the 2016 increases being finalized apply to violations occurring prior to the effective date of this final rule (and on and after the effective date of the 2016 interim rule) and the 2017 increases apply to violations occurring on or after this rule’s effective date. Along with the 2017 inflation adjustment in this final rule, HUD also makes conforming and technical amendments to §§ 30.5, 30.10, 30.35, Regulatory citation (24 CFR) 30.36, and 30.80. Specifically, references to the former mortgage assignment procedures (in § 30.35), Urban Homesteading program (in §§ 30.5 and 30.80), and the Loan Correspondent program (in § 30.36) are removed, as those programs have been ended and are no longer active. In addition, the Helping Families Save Their Homes Act of 2009 (Pub. L. 111– 22) amended the HUD Reform Act of 1989 (12 U.S.C. 1735f–14(a)(2)) definition for ‘‘knowing or knowingly’’ as it applies to civil money penalties against mortgagees, lenders, and other participants in FHA programs. This rule amends the definition for ‘‘knowing or knowingly’’ in § 30.10 to include the 2009 statutory definition. For each component, HUD provides a table showing how the penalties are being adjusted for 2017 pursuant to the 2015 Act. In the first column, HUD provides a description of the penalty. In the second column (‘‘Statutory Citation,’’) HUD provides the United States Code statutory citation providing for the penalty. In the third column (‘‘Regulatory citation’’), HUD provides the Code of Federal Regulations citation under title 24 for the penalty. In the fourth column (‘‘Previous Amount’’), HUD provides the amount of the penalty pursuant to the interim rule implementing the ‘‘catch-up’’ adjustment (81 FR 38931, June 15, 2016). In the fifth column, (‘‘2017 Adjusted Amount’’) HUD lists the penalty after applying the 2017 inflation adjustment. sradovich on DSK3GMQ082PROD with RULES Statutory citation False Claims & Statements. Advance Disclosure of Funding. Disclosure of Subsidy Layering. FHA Mortgagees and Lenders Violations. Other FHA Participants Violations. Indian Loan Mortgagees Violations. Multifamily & Section 202 or 811 Owners Violations. Ginnie Mae Issuers & Custodians Violations. Title I Broker & Dealers Violations. Omnibus Budget Reconciliation Act of 1986 (31 U.S.C. 3802(a)(1)). Department of Housing and Urban Development Act (42 U.S.C. 3537a(c)). Department of Housing and Urban Development Act (42 U.S.C. 3545(f)). HUD Reform Act of 1989 (12 U.S.C. 1735f– 14(a)(2)). HUD Reform Act of 1989 (12 U.S.C. 1735f– 14(a)(2)). Housing Community Development Act of 1992 (12 U.S.C. 1715z–13a(g)(2)). HUD Reform Act of 1989 (12 U.S.C. 1735f– 15(c)(2)). § 28.10 $10,781 ......................... $10,957 § 30.20 $18,936 ......................... $19,246 § 30.25 $18,936 ......................... $19,246 § 30.35 Per Violation: $9,468 Per Year: $1,893,610. Per Violation: $9,468 Per Year: $1,893,610. Per Violation: $9,468 Per Year: $1,893,610. $47,340 ......................... Per Violation: $9,623 Per Year: $1,924,589 Per Violation: $9,623 Per Year: $1,924,589 Per Violation: $9,623 Per Year: $1,924,589 $48,114 HUD Reform Act of 1989 (12 U.S.C. 1723i(b)) § 30.50 HUD Reform Act of 1989 (12 U.S.C. 1703) ...... § 30.60 Per Violation: $9,468 Per Year: $1,893,610. Per Violation: $9,468 Per Year: $1,893,610. Per Violation: $9,623 Per Year: $1,924,589 Per Violation: $9,623 Per Year: $1,924,589 1 The comment is available for public inspection at: https://www.regulations.gov/docket?D=HUD2016-0062. 2 Office of Management and Budget, M–17–11, Memorandum for the Heads of Executive VerDate Sep<11>2014 17:28 May 26, 2017 Jkt 241001 § 30.36 § 30.40 § 30.45 Previous amount 2017 Adjusted amount Description Departments and Agencies, Implementation of the 2017 annual adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act. (https:// obamawhitehouse.archives.gov/sites/default/files/ omb/memoranda/2017/m-17-11_0.pdf). (October PO 00000 Frm 00068 Fmt 4700 Sfmt 4700 2016 CPI–U (241.729) ¥ October 2015 CPI–U (237.838) = 1.01636.) 3 28 U.S.C. 2461 note. E:\FR\FM\30MYR1.SGM 30MYR1 Federal Register / Vol. 82, No. 102 / Tuesday, May 30, 2017 / Rules and Regulations Description Lead Disclosure Violation. Regulatory citation (24 CFR) Statutory citation Fair Housing Act Civil Penalties. Title X—Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4852d(b)(1)). Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437z– 1(b)(2)). The Lobbying Disclosure Act of 1995 (31 U.S.C. 1352). Fair Housing Amendments Act of 1988 (42 U.S.C. 3612(g)(3)). Manufactured Housing Regulations Violation. Housing Community Development Act of 1974 (42 U.S.C. 5410). Section 8 Owners Violations. Lobbying Violation ........ sradovich on DSK3GMQ082PROD with RULES III. Justification for Final Rulemaking for the 2017 Adjustments HUD generally publishes regulations for public comment before issuing a rule for effect, in accordance with its own regulations on rulemaking in 24 CFR part 10. However, part 10 provides for exceptions to the general rule if the agency finds good cause to omit advanced notice and public participation. The good cause requirement is satisfied when prior public procedure is ‘‘impractical, unnecessary, or contrary to the public interest’’ (see 24 CFR 10.1). As discussed, this final rule adopts without change the amendments offered for public comment in the June 15, 2106, interim final rule. In addition, this rule makes the required 2017 inflation adjustment, which HUD does not have discretion to change. Moreover, the 2015 Act specifies that a delay in the effective date under the Administrative Procedure Act is not required for subsequent annual adjustments under the 2015 Act. HUD has determined, therefore, that it is unnecessary to delay the effectiveness of the 2017 inflation adjustments to solicit prior public comments. As discussed in the preamble to the June 15, 2016, interim final rule, section 7(o) of the Department of Housing and Urban Development Act (42 U.S.C. 3535(o)) requires that any HUD regulation implementing any provision of the Department of Housing and Urban Development Reform Act of 1989 that authorizes the imposition of a civil money penalty may not become effective until after the expiration of a public comment period of not less than 60 days. HUD met this separate 60-day delay requirement for implementing civil money penalties when HUD implemented the new 2015 Act penalty calculation in its June 16, 2016, interim final rule. VerDate Sep<11>2014 17:28 May 26, 2017 Jkt 241001 Previous amount $16,773 ......................... $17,047 § 30.68 $36,794 ......................... $37,396 § 87.400 Min: $18,936 Max: $189,361. No Priors: $19,787 One Prior: $49,467 Two or More Priors: $98,935. Min: $19,246 Max: $192,459 No Priors: $20,111 One Prior: $50,276 Two or More Priors: $100,554 Per Violation: $2,795 Per Year: $3,493,738 § 180.671(a) § 3282.10 Per Violation: $2,750 Per Year: $3,437,500. IV. Findings and Certifications Regulatory Review—Executive Orders 12866 and 13563 Under Executive Order 12866 (Regulatory Planning and Review), a determination must be made whether a regulatory action is significant and, therefore, subject to review by the Office of Management and Budget (OMB) in accordance with the requirements of the order. Executive Order 13563 (Improving Regulations and Regulatory Review) directs executive agencies to analyze regulations that are ‘‘outmoded, ineffective, insufficient, or excessively burdensome, and to modify, streamline, expand, or repeal them in accordance with what has been learned. Executive Order 13563 also directs that, where relevant, feasible, and consistent with regulatory objectives, and to the extent permitted by law, agencies are to identify and consider regulatory approaches that reduce burdens and maintain flexibility and freedom of choice for the public. As discussed above in this preamble, this final rule adjusts existing civil monetary penalties for inflation by a statutorily required amount. As a result of this review, OMB determined that this rule was not significant under Executive Order 12866 and Executive Order 13563. Frm 00069 Fmt 4700 2017 Adjusted amount § 30.65 Moreover, and as noted above, the 2017 inflation adjustments are made in accordance with a statutorily prescribed formula that does not provide for agency discretion. Accordingly, a delay in the effectiveness of the 2017 inflation adjustments in order to provide the public with an opportunity to comment is unnecessary because the 2015 Act exempts the adjustments from the need for delay and, in any event, HUD would not have the discretion to make changes as a result of any comments. PO 00000 24523 Sfmt 4700 Regulatory Flexibility Act The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) generally requires an agency to conduct a regulatory flexibility analysis of any rule subject to notice and comment rulemaking requirements, unless the agency certifies that the rule will not have a significant economic impact on a substantial number of small entities. Because HUD has determined that good cause exists to issue this rule without prior public comment, this rule is not subject to the requirement to publish an initial or final regulatory flexibility analysis under the RFA as part of such action. Unfunded Mandates Reform Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) 4 requires that an agency prepare a budgetary impact statement before promulgating a rule that includes a Federal mandate that may result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year. If a budgetary impact statement is required, section 205 of UMRA also requires an agency to identity and consider a reasonable number of regulatory alternatives before promulgating a rule.5 However, the UMRA applies only to rules for which an agency publishes a general notice of proposed rulemaking. As discussed above, HUD has determined, for good cause, that prior notice and public comment is not required on this rule and, therefore, the UMRA does not apply to this final rule. Executive Order 13132, Federalism Executive Order 13132 (entitled ‘‘Federalism’’) prohibits an agency from publishing any rule that has federalism implications if the rule either imposes 42 52 U.S.C. 1532. U.S.C. 1534. E:\FR\FM\30MYR1.SGM 30MYR1 24524 Federal Register / Vol. 82, No. 102 / Tuesday, May 30, 2017 / Rules and Regulations substantial direct compliance costs on State and local governments and is not required by statute, or the rule preempts State law, unless the agency meets the consultation and funding requirements of section 6 of the Executive Order. This rule will not have federalism implications and would not impose substantial direct compliance costs on State and local governments or preempt State law within the meaning of the Executive order. Environmental Review This interim final rule does not direct, provide for assistance or loan and mortgage insurance for, or otherwise govern, or regulate, real property acquisition, disposition, leasing, rehabilitation, alteration, demolition, or new construction, or establish, revise, or provide for standards for construction or construction materials, manufactured housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this final rule is categorically excluded from environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321). List of Subjects § 28.10 Basis for civil penalties and assessments. (a) * * * (1) A civil penalty of not more than $10,957 may be imposed upon any person who makes, presents, or submits, or causes to be made, presented, or submitted, a claim that the person knows or has reason to know: * * * * * (b) * * * (1) A civil penalty of not more than $10,957 may be imposed upon any person who makes, presents, or submits, or causes to be made, presented, or submitted, a written statement that: * * * * * Authority: 12 U.S.C. 1701q–1, 1703, 1723i, 1735f–14, and 1735f–15; 15 U.S.C. 1717a; 28 U.S.C. 1 note and 2461 note; 42 U.S.C. 1437z–1 and 3535(d). § 30.5 [Amended] 4. In § 30.5, remove paragraph (c) and redesignate paragraphs (d), (e), and (f) as paragraphs (c), (d), and (e), respectively. ■ 24 CFR Part 180 Administrative practice and procedure, Aged, Civil rights, Fair housing, Individuals with disabilities, Investigations, Mortgages, Penalties, Reporting and recordkeeping requirements. sradovich on DSK3GMQ082PROD with RULES 2. In § 28.10, revise the introductory text of paragraphs (a)(1) and (b)(1), to read as follows: ■ 3. The authority citation for part 30 continues to read as follows: 24 CFR Part 87 Government contracts, Grant programs, Loan programs, Lobbying, Penalties, Reporting and recordkeeping requirements. § 30.10 [Amended] 5. In § 30.10, add at the end of the definition of ‘‘Knowing or Knowingly’’ the sentence ‘‘For purposes of §§ 30.35 and 30.36, knowing or knowingly is defined at 12 U.S.C. 1735f–14(g).’’ ■ 6. In § 30.20, revise paragraph (b) to read as follows: ■ § 30.20 Ethical violations by HUD employees. 24 CFR Part 3282 Administrative practice and procedure, Consumer protection, Intergovernmental relations, Manufactured homes, Reporting and recordkeeping requirements. Accordingly, for the reasons described in the preamble, HUD adopts as final the interim final rule published on June 15, 2016, at 81 FR 38931, and further amends 24 CFR parts 28, 30, 87, 180, and 3282 as follows: Jkt 241001 Authority: 28 U.S.C. 2461 note; 31 U.S.C. 3801–3812; 42 U.S.C. 3535(d). ■ 24 CFR Part 30 Administrative practice and procedure, Grant programs—housing and community development, Loan programs—housing and community development, Mortgage insurance, Penalties. 17:28 May 26, 2017 1. The authority citation for part 28 continues to read as follows: paragraph (a)(7) and add in their place ‘‘§ 203.664’’; and revise the first sentence in paragraph (c)(1) to read as follows: ■ PART 30—CIVIL MONEY PENALTIES: CERTAIN PROHIBITED CONDUCT 24 CFR Part 28 Administrative practice and procedure, Claims, Fraud, Penalties. VerDate Sep<11>2014 PART 28—IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL REMEDIES ACT OF 1986 * * * * * (b) Maximum penalty. The maximum penalty is $19,246 for each violation. ■ 7. In § 30.25, revise paragraph (b) to read as follows: § 30.25 Violations by applicants for assistance. * * * * * (b) Maximum penalty. The maximum penalty is $19,246 for each violation. ■ 8. In § 30.35, remove the words ‘‘§§ 203.650 through 203.664’’ in PO 00000 Frm 00070 Fmt 4700 Sfmt 4700 § 30.35 Mortgagees and lenders. * * * * * (c)(1) Amount of penalty. The maximum penalty is $9,623 for each violation, up to a limit of $1,924,589 for all violations committed during any one-year period. * * * * * * * * ■ 9. In § 30.36, remove the words ‘‘or correspondent’’ in paragraph (b)(3) and revise the first sentence in paragraph (c) to read as follows: § 30.36 Other participants in FHA programs. * * * * * (c) Amount of penalty. The maximum penalty is $9,623 for each violation, up to a limit of $1,924,589 for all violations committed during any one-year period. * * * ■ 10. In § 30.40, revise the first sentence in paragraph (c) to read as follows: § 30.40 Loan guarantees for Indian housing. * * * * * (c) Amount of penalty. The maximum penalty is $9,623 for each violation, up to a limit of $1,924,589 for all violations committed during any one-year period. * * * ■ 11. In § 30.45, revise paragraph (g) to read as follows: § 30.45 Multifamily and section 202 or 811 mortgagors. * * * * * (g) Maximum penalty. The maximum penalty for each violation under paragraphs (c) and (f) of this section is $48,114. * * * * * ■ 12. In § 30.50, revise the first sentence in paragraph (c) to read as follows: § 30.50 GNMA issuers and custodians. * * * * * (c) Amount of penalty. The maximum penalty is $9,623 for each violation, up to a limit of $1,924,589 during any oneyear period. * * * ■ 13. In § 30.60, revise paragraph (c) to read as follows: § 30.60 Dealers or sponsored third-party originators. * * * * * (c) Amount of penalty. The maximum penalty is $9,623 for each violation, up to a limit for any particular person of $1,924,589 during any one-year period. ■ 14. In § 30.65, revise paragraph (b) to read as follows: E:\FR\FM\30MYR1.SGM 30MYR1 Federal Register / Vol. 82, No. 102 / Tuesday, May 30, 2017 / Rules and Regulations § 30.65 Failure to disclose lead-based paint hazards. § 180.671 Assessing civil penalties for Fair Housing Act cases. * (a) * * * (1) $20,111, if the respondent has not been adjudged in any administrative hearing or civil action permitted under the Fair Housing Act or any state or local fair housing law, or in any licensing or regulatory proceeding conducted by a federal, state, or local governmental agency, to have committed any prior discriminatory housing practice. (2) $50,276, if the respondent has been adjudged in any administrative hearing or civil action permitted under the Fair Housing Act, or under any state or local fair housing law, or in any licensing or regulatory proceeding conducted by a federal, state, or local government agency, to have committed one other discriminatory housing practice and the adjudication was made during the 5-year period preceding the date of filing of the charge. (3) $100,554, if the respondent has been adjudged in any administrative hearings or civil actions permitted under the Fair Housing Act, or under any state or local fair housing law, or in any licensing or regulatory proceeding conducted by a federal, state, or local government agency, to have committed two or more discriminatory housing practices and the adjudications were made during the 7-year period preceding the date of filing of the charge. * * * * * * * * * (b) Amount of penalty. The maximum penalty is $17,047 for each violation. ■ 15. In § 30.68, revise paragraph (c) to read as follows: § 30.68 Section 8 owners. * * * * * (c) Maximum penalty. The maximum penalty for each violation under this section is $37,396. * * * * * § 30.80 [Amended] 16. In § 30.80, add the word ‘‘and’’ after paragraph (h); remove paragraph (i); and redesignate paragraphs (j), (k), and (l) as paragraphs (i), (j), and (k), respectively. ■ PART 87—NEW RESTRICTIONS ON LOBBYING 17. The authority citation for part 87 continues to read as follows: ■ Authority: 28 U.S.C. 1 note; 31 U.S.C. 1352; 42 U.S.C. 3535(d). 18. In § 87.400, revise paragraphs (a), (b), and (e) to read as follows: ■ § 87.400 Penalties. (a) Any person who makes an expenditure prohibited herein shall be subject to a civil penalty of not less than $19,246 and not more than $192,459 for each such expenditure. (b) Any person who fails to file or amend the disclosure form (see appendix B) to be filed or amended if required herein, shall be subject to a civil penalty of not less than $19,246 and not more than $192,459 for each such failure. * * * * * (e) First offenders under paragraphs (a) or (b) of this section shall be subject to a civil penalty of $19,246, absent aggravating circumstances. Second and subsequent offenses by persons shall be subject to an appropriate civil penalty between $19,246 and $192,459, as determined by the agency head or his or her designee. * * * * * 21. The authority citation for part 3282 continues to read as follows: ■ Authority: 28 U.S.C. 1 note; 28 U.S.C. 2461 note; 42 U.S.C. 3535(d) and 5424. 22. Revise § 3282.10 to read as follows: ■ § 3282.10 Civil and criminal penalties. 19. The authority citation for part 180 continues to read as follows: Failure to comply with these regulations may subject the party in question to the civil and criminal penalties provided for in section 611 of the Act, 42 U.S.C. 5410. The maximum amount of penalties imposed under section 611 of the Act shall be $2,795 for each violation, up to a maximum of $3,493,738 for any related series of violations occurring within one year from the date of the first violation. Authority: 28 U.S.C. 1 note; 29 U.S.C. 794; 42 U.S.C. 2000d–1, 3535(d), 3601–3619, 5301–5320, and 6103. Dated: May 22, 2017. Bethany A. Zorc, Principal Deputy General Counsel. 20. In § 180.671, revise paragraphs (a)(1), (2), and (3) to read as follows: [FR Doc. 2017–11056 Filed 5–26–17; 8:45 am] PART 180—CONSOLIDATED HUD HEARING PROCEDURES FOR CIVIL RIGHTS MATTERS sradovich on DSK3GMQ082PROD with RULES PART 3282—MANUFACTURED HOME PROCEDURAL AND ENFORCEMENT REGULATIONS ■ ■ VerDate Sep<11>2014 17:28 May 26, 2017 Jkt 241001 BILLING CODE 4210–67–P PO 00000 Frm 00071 Fmt 4700 Sfmt 4700 24525 DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 165 [Docket Number USCG–2017–0408] RIN 1625–AA00 Safety Zone; Buffalo Carnival; Buffalo Outer Harbor, Buffalo, NY Coast Guard, DHS. Temporary final rule. AGENCY: ACTION: The Coast Guard is establishing a temporary safety zone on Lake Erie, Buffalo Outer Harbor, Buffalo, NY. This safety zone is intended to restrict vessels from a portion of the Outer Harbor during the May 28, 2017 fireworks display. This temporary safety zone is necessary to protect mariners and vessels from the navigational hazards associated with a fireworks display. DATES: This rule is effective from 8:45 p.m. until 9:45 p.m. on May 28, 2017. ADDRESSES: To view documents mentioned in this preamble as being available in the docket, go to http:// www.regulations.gov, type USCG–2017– 0408 in the ‘‘SEARCH’’ box and click ‘‘SEARCH.’’ Click on Open Docket Folder on the line associated with this rule. FOR FURTHER INFORMATION CONTACT: If you have questions on this rule, call or email LT Michael Collet, Chief of Waterways Management, U.S. Coast Guard Sector Buffalo; telephone 716– 843–9322, email SectorBuffaloMarineSafety@uscg.mil. SUPPLEMENTARY INFORMATION: SUMMARY: I. Table of Abbreviations CFR Code of Federal Regulations DHS Department of Homeland Security FR Federal Register NPRM Notice of proposed rulemaking § Section U.S.C. United States Code II. Background Information and Regulatory History The Coast Guard is issuing this temporary rule without prior notice and opportunity to comment pursuant to authority under section 4(a) of the Administrative Procedure Act (APA) (5 U.S.C. 553(b)). This provision authorizes an agency to issue a rule without prior notice and opportunity to comment when the agency for good cause finds that those procedures are ‘‘impracticable, unnecessary, or contrary to the public interest.’’ Under 5 U.S.C. 553(b)(B), the Coast Guard finds that E:\FR\FM\30MYR1.SGM 30MYR1

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[Federal Register Volume 82, Number 102 (Tuesday, May 30, 2017)]
[Rules and Regulations]
[Pages 24521-24525]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-11056]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 28, 30, 87, 180, and 3282

[Docket No. FR-5942-F-02]
RIN 2501-AD79


Inflation Catch-Up Adjustment of Civil Monetary Penalty Amounts 
Final Rule and Adjustment of Civil Monetary Penalty Amounts for 2017

AGENCY: Office of the General Counsel, HUD.

ACTION: Final rule.

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SUMMARY: This rule makes final the interim final rule, published on 
June 15, 2016, to amend HUD's civil monetary penalty (CMP) regulations. 
The interim final rule applied a new methodology to calculate civil 
money penalties as mandated by the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015, starting with a ``catch up'' 
adjustment to correct previous inaccuracies; removed three obsolete 
civil monetary penalty provisions; and made a technical change to the 
existing codified regulation implementing the Program Fraud Civil 
Remedies Act. The changes from the interim final rule made final by 
this final rule continue to be effective as of August 16, 2016.
    In addition, this rule provides for 2017 inflation adjustments of 
civil monetary penalty amounts required by the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015, and makes three 
technical amendments and a conforming statutory change.

DATES: Effective date: June 29, 2017.
    Applicability date: The applicability date for catch-up adjustment 
was August 16, 2016.

FOR FURTHER INFORMATION CONTACT: Dane Narode, Associate General 
Counsel, Office of Program Enforcement, Department of Housing and Urban 
Development, 1250 Maryland Avenue SW., Suite 200, Washington, DC 20024; 
telephone number 202-245-4141 (this is not a toll-free number). 
Hearing- or speech-impaired individuals may access this number via TTY 
by calling the Federal Information Relay Service, toll-free, at 800-
877-8339.

SUPPLEMENTARY INFORMATION: 

I. Background

A. The June 15, 2016, Interim Rule

    The Federal Civil Penalties Inflation Adjustment Act Improvements 
Act of 2015 (2015 Act) (Pub. L. 114-74) amended the Federal Civil 
Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note) 
requiring all Federal agencies to issue an interim final rule 
implementing changes to their civil money penalties. On June 15, 2016, 
pursuant to the requirements of the 2015 Act, HUD published an interim 
final rule for public comment, entitled ``Inflation Catch-Up Adjustment 
of Civil Monetary Penalty Amounts'' (81 FR 38931). The 2015 Act 
required agencies to make an initial catch-up adjustment by interim 
final rule, using a new methodology designed to correct inaccuracies in 
the previous method of computing inflation adjustments. In order to 
address these inaccuracies, the 2015 Act excluded adjustments made 
under the law prior to its amendment, and it provided that the initial 
catch-up adjustment was the percentage by which

[[Page 24522]]

the Consumer Price Index (CPI) for the month of October 2015 exceeded 
that of the month of October of the calendar year during which the 
amount of the CMP was originally established or otherwise adjusted 
under a provision of law other than the Federal Civil Money Penalties 
Inflation Adjustment Act of 1990. Increases in the initial catch-up 
adjustment were capped at 150 percent of the amount of the CMP in 
effect as of the date of enactment of the 2015 Act.
    The interim final rule established the new adjusted penalty amount 
for each provision under which HUD is authorized to assess a CMP (81 FR 
38935-38936); removed the obsolete CMP provisions that were codified at 
24 CFR 30.30, 30.55, and 30.69 (81 FR 38935); and made a correction to 
24 CFR 28.10 to include liability for causing a false claim or 
statement to be made, in addition to liability for making a false claim 
or statement (81 FR 38935).
    The public comment period for the interim final rule closed on 
August 15, 2016. The interim final rule became effective on August 16, 
2016. The August 16, 2016, effective date for the amendments made by 
the interim final rule is unchanged. HUD received one comment in 
response to the interim final rule, but it was not actually relevant to 
any issue in the interim final rule.\1\
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    \1\ The comment is available for public inspection at: https://www.regulations.gov/docket?D=HUD-2016-0062.
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B. This 2017 Inflation Adjustment

    After the catch-up adjustment, the 2015 Act requires agencies to 
make subsequent annual adjustments for inflation ``notwithstanding 
section 553 of title 5, United States Code.'' Section 553 refers to the 
Administrative Procedure Act, which might otherwise require a delay for 
advance notice and opportunity for public comment on future annual 
inflation adjustments. The first of these subsequent adjustments is for 
2017.
    The annual adjustment is based on the percent change between the 
U.S. Department of Labor's Consumer Price Index for All Urban Consumers 
(``CPI-U'') for the month of October preceding the date of the 
adjustment, and the CPI-U for October of the prior year (28 U.S.C. 2461 
note, section (5)(b)(1)). Based on that formula, the cost-of-living 
adjustment multiplier for 2017 is 1.01636.\2\ Pursuant to the 2015 Act, 
adjustments are rounded to the nearest dollar.\3\
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    \2\ Office of Management and Budget, M-17-11, Memorandum for the 
Heads of Executive Departments and Agencies, Implementation of the 
2017 annual adjustment pursuant to the Federal Civil Penalties 
Inflation Adjustment Act. (https://obamawhitehouse.archives.gov/sites/default/files/omb/memoranda/2017/m-17-11_0.pdf). (October 2016 
CPI-U (241.729) - October 2015 CPI-U (237.838) = 1.01636.)
    \3\ 28 U.S.C. 2461 note.
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II. This Final Rule

    This rule makes final the June 15, 2016, interim rule. In addition, 
this rule makes the required 2017 inflation adjustment. Since HUD is 
not applying these adjustments retroactively, the 2016 increases being 
finalized apply to violations occurring prior to the effective date of 
this final rule (and on and after the effective date of the 2016 
interim rule) and the 2017 increases apply to violations occurring on 
or after this rule's effective date.
    Along with the 2017 inflation adjustment in this final rule, HUD 
also makes conforming and technical amendments to Sec. Sec.  30.5, 
30.10, 30.35, 30.36, and 30.80. Specifically, references to the former 
mortgage assignment procedures (in Sec.  30.35), Urban Homesteading 
program (in Sec. Sec.  30.5 and 30.80), and the Loan Correspondent 
program (in Sec.  30.36) are removed, as those programs have been ended 
and are no longer active. In addition, the Helping Families Save Their 
Homes Act of 2009 (Pub. L. 111-22) amended the HUD Reform Act of 1989 
(12 U.S.C. 1735f-14(a)(2)) definition for ``knowing or knowingly'' as 
it applies to civil money penalties against mortgagees, lenders, and 
other participants in FHA programs. This rule amends the definition for 
``knowing or knowingly'' in Sec.  30.10 to include the 2009 statutory 
definition.
    For each component, HUD provides a table showing how the penalties 
are being adjusted for 2017 pursuant to the 2015 Act. In the first 
column, HUD provides a description of the penalty. In the second column 
(``Statutory Citation,'') HUD provides the United States Code statutory 
citation providing for the penalty. In the third column (``Regulatory 
citation''), HUD provides the Code of Federal Regulations citation 
under title 24 for the penalty. In the fourth column (``Previous 
Amount''), HUD provides the amount of the penalty pursuant to the 
interim rule implementing the ``catch-up'' adjustment (81 FR 38931, 
June 15, 2016). In the fifth column, (``2017 Adjusted Amount'') HUD 
lists the penalty after applying the 2017 inflation adjustment.

----------------------------------------------------------------------------------------------------------------
                                                          Regulatory
           Description              Statutory citation   citation (24     Previous amount       2017 Adjusted
                                                             CFR)                                   amount
----------------------------------------------------------------------------------------------------------------
False Claims & Statements........  Omnibus Budget         Sec.   28.10  $10,781............  $10,957
                                    Reconciliation Act
                                    of 1986 (31 U.S.C.
                                    3802(a)(1)).
Advance Disclosure of Funding....  Department of          Sec.   30.20  $18,936............  $19,246
                                    Housing and Urban
                                    Development Act
                                    (42 U.S.C.
                                    3537a(c)).
Disclosure of Subsidy Layering...  Department of          Sec.   30.25  $18,936............  $19,246
                                    Housing and Urban
                                    Development Act
                                    (42 U.S.C.
                                    3545(f)).
FHA Mortgagees and Lenders         HUD Reform Act of      Sec.   30.35  Per Violation:       Per Violation:
 Violations.                        1989 (12 U.S.C.                      $9,468 Per Year:     $9,623 Per Year:
                                    1735f-14(a)(2)).                     $1,893,610.          $1,924,589
Other FHA Participants Violations  HUD Reform Act of      Sec.   30.36  Per Violation:       Per Violation:
                                    1989 (12 U.S.C.                      $9,468 Per Year:     $9,623 Per Year:
                                    1735f-14(a)(2)).                     $1,893,610.          $1,924,589
Indian Loan Mortgagees Violations  Housing Community      Sec.   30.40  Per Violation:       Per Violation:
                                    Development Act of                   $9,468 Per Year:     $9,623 Per Year:
                                    1992 (12 U.S.C.                      $1,893,610.          $1,924,589
                                    1715z-13a(g)(2)).
Multifamily & Section 202 or 811   HUD Reform Act of      Sec.   30.45  $47,340............  $48,114
 Owners Violations.                 1989 (12 U.S.C.
                                    1735f-15(c)(2)).
Ginnie Mae Issuers & Custodians    HUD Reform Act of      Sec.   30.50  Per Violation:       Per Violation:
 Violations.                        1989 (12 U.S.C.                      $9,468 Per Year:     $9,623 Per Year:
                                    1723i(b)).                           $1,893,610.          $1,924,589
Title I Broker & Dealers           HUD Reform Act of      Sec.   30.60  Per Violation:       Per Violation:
 Violations.                        1989 (12 U.S.C.                      $9,468 Per Year:     $9,623 Per Year:
                                    1703).                               $1,893,610.          $1,924,589

[[Page 24523]]

 
Lead Disclosure Violation........  Title X--              Sec.   30.65  $16,773............  $17,047
                                    Residential Lead-
                                    Based Paint Hazard
                                    Reduction Act of
                                    1992 (42 U.S.C.
                                    4852d(b)(1)).
Section 8 Owners Violations......  Multifamily            Sec.   30.68  $36,794............  $37,396
                                    Assisted Housing
                                    Reform and
                                    Affordability Act
                                    of 1997 (42 U.S.C.
                                    1437z-1(b)(2)).
Lobbying Violation...............  The Lobbying          Sec.   87.400  Min: $18,936 Max:    Min: $19,246 Max:
                                    Disclosure Act of                    $189,361.            $192,459
                                    1995 (31 U.S.C.
                                    1352).
Fair Housing Act Civil Penalties.  Fair Housing                   Sec.  No Priors: $19,787   No Priors: $20,111
                                    Amendments Act of       180.671(a)   One Prior: $49,467   One Prior: $50,276
                                    1988 (42 U.S.C.                      Two or More          Two or More
                                    3612(g)(3)).                         Priors: $98,935.     Priors: $100,554
Manufactured Housing Regulations   Housing Community    Sec.   3282.10  Per Violation:       Per Violation:
 Violation.                         Development Act of                   $2,750 Per Year:     $2,795 Per Year:
                                    1974 (42 U.S.C.                      $3,437,500.          $3,493,738
                                    5410).
----------------------------------------------------------------------------------------------------------------

III. Justification for Final Rulemaking for the 2017 Adjustments

    HUD generally publishes regulations for public comment before 
issuing a rule for effect, in accordance with its own regulations on 
rulemaking in 24 CFR part 10. However, part 10 provides for exceptions 
to the general rule if the agency finds good cause to omit advanced 
notice and public participation. The good cause requirement is 
satisfied when prior public procedure is ``impractical, unnecessary, or 
contrary to the public interest'' (see 24 CFR 10.1). As discussed, this 
final rule adopts without change the amendments offered for public 
comment in the June 15, 2106, interim final rule. In addition, this 
rule makes the required 2017 inflation adjustment, which HUD does not 
have discretion to change. Moreover, the 2015 Act specifies that a 
delay in the effective date under the Administrative Procedure Act is 
not required for subsequent annual adjustments under the 2015 Act. HUD 
has determined, therefore, that it is unnecessary to delay the 
effectiveness of the 2017 inflation adjustments to solicit prior public 
comments.
    As discussed in the preamble to the June 15, 2016, interim final 
rule, section 7(o) of the Department of Housing and Urban Development 
Act (42 U.S.C. 3535(o)) requires that any HUD regulation implementing 
any provision of the Department of Housing and Urban Development Reform 
Act of 1989 that authorizes the imposition of a civil money penalty may 
not become effective until after the expiration of a public comment 
period of not less than 60 days. HUD met this separate 60-day delay 
requirement for implementing civil money penalties when HUD implemented 
the new 2015 Act penalty calculation in its June 16, 2016, interim 
final rule.
    Moreover, and as noted above, the 2017 inflation adjustments are 
made in accordance with a statutorily prescribed formula that does not 
provide for agency discretion. Accordingly, a delay in the 
effectiveness of the 2017 inflation adjustments in order to provide the 
public with an opportunity to comment is unnecessary because the 2015 
Act exempts the adjustments from the need for delay and, in any event, 
HUD would not have the discretion to make changes as a result of any 
comments.

IV. Findings and Certifications

Regulatory Review--Executive Orders 12866 and 13563

    Under Executive Order 12866 (Regulatory Planning and Review), a 
determination must be made whether a regulatory action is significant 
and, therefore, subject to review by the Office of Management and 
Budget (OMB) in accordance with the requirements of the order. 
Executive Order 13563 (Improving Regulations and Regulatory Review) 
directs executive agencies to analyze regulations that are ``outmoded, 
ineffective, insufficient, or excessively burdensome, and to modify, 
streamline, expand, or repeal them in accordance with what has been 
learned. Executive Order 13563 also directs that, where relevant, 
feasible, and consistent with regulatory objectives, and to the extent 
permitted by law, agencies are to identify and consider regulatory 
approaches that reduce burdens and maintain flexibility and freedom of 
choice for the public. As discussed above in this preamble, this final 
rule adjusts existing civil monetary penalties for inflation by a 
statutorily required amount.
    As a result of this review, OMB determined that this rule was not 
significant under Executive Order 12866 and Executive Order 13563.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) 
generally requires an agency to conduct a regulatory flexibility 
analysis of any rule subject to notice and comment rulemaking 
requirements, unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
Because HUD has determined that good cause exists to issue this rule 
without prior public comment, this rule is not subject to the 
requirement to publish an initial or final regulatory flexibility 
analysis under the RFA as part of such action.

Unfunded Mandates Reform

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) \4\ 
requires that an agency prepare a budgetary impact statement before 
promulgating a rule that includes a Federal mandate that may result in 
the expenditure by State, local, and tribal governments, in the 
aggregate, or by the private sector, of $100 million or more in any one 
year. If a budgetary impact statement is required, section 205 of UMRA 
also requires an agency to identity and consider a reasonable number of 
regulatory alternatives before promulgating a rule.\5\ However, the 
UMRA applies only to rules for which an agency publishes a general 
notice of proposed rulemaking. As discussed above, HUD has determined, 
for good cause, that prior notice and public comment is not required on 
this rule and, therefore, the UMRA does not apply to this final rule.
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    \4\ 2 U.S.C. 1532.
    \5\ 2 U.S.C. 1534.
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Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the rule 
either imposes

[[Page 24524]]

substantial direct compliance costs on State and local governments and 
is not required by statute, or the rule preempts State law, unless the 
agency meets the consultation and funding requirements of section 6 of 
the Executive Order. This rule will not have federalism implications 
and would not impose substantial direct compliance costs on State and 
local governments or preempt State law within the meaning of the 
Executive order.

Environmental Review

    This interim final rule does not direct, provide for assistance or 
loan and mortgage insurance for, or otherwise govern, or regulate, real 
property acquisition, disposition, leasing, rehabilitation, alteration, 
demolition, or new construction, or establish, revise, or provide for 
standards for construction or construction materials, manufactured 
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this 
final rule is categorically excluded from environmental review under 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321).

List of Subjects

24 CFR Part 28

    Administrative practice and procedure, Claims, Fraud, Penalties.

24 CFR Part 30

    Administrative practice and procedure, Grant programs--housing and 
community development, Loan programs--housing and community 
development, Mortgage insurance, Penalties.

24 CFR Part 87

    Government contracts, Grant programs, Loan programs, Lobbying, 
Penalties, Reporting and recordkeeping requirements.

24 CFR Part 180

    Administrative practice and procedure, Aged, Civil rights, Fair 
housing, Individuals with disabilities, Investigations, Mortgages, 
Penalties, Reporting and recordkeeping requirements.

24 CFR Part 3282

    Administrative practice and procedure, Consumer protection, 
Intergovernmental relations, Manufactured homes, Reporting and 
recordkeeping requirements.

    Accordingly, for the reasons described in the preamble, HUD adopts 
as final the interim final rule published on June 15, 2016, at 81 FR 
38931, and further amends 24 CFR parts 28, 30, 87, 180, and 3282 as 
follows:

PART 28--IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL REMEDIES ACT OF 
1986

0
1. The authority citation for part 28 continues to read as follows:

    Authority: 28 U.S.C. 2461 note; 31 U.S.C. 3801-3812; 42 U.S.C. 
3535(d).

0
2. In Sec.  28.10, revise the introductory text of paragraphs (a)(1) 
and (b)(1), to read as follows:


Sec.  28.10  Basis for civil penalties and assessments.

    (a) * * *
    (1) A civil penalty of not more than $10,957 may be imposed upon 
any person who makes, presents, or submits, or causes to be made, 
presented, or submitted, a claim that the person knows or has reason to 
know:
* * * * *
    (b) * * *
    (1) A civil penalty of not more than $10,957 may be imposed upon 
any person who makes, presents, or submits, or causes to be made, 
presented, or submitted, a written statement that:
* * * * *

PART 30--CIVIL MONEY PENALTIES: CERTAIN PROHIBITED CONDUCT

0
3. The authority citation for part 30 continues to read as follows:

    Authority: 12 U.S.C. 1701q-1, 1703, 1723i, 1735f-14, and 1735f-
15; 15 U.S.C. 1717a; 28 U.S.C. 1 note and 2461 note; 42 U.S.C. 
1437z-1 and 3535(d).


Sec.  30.5  [Amended]

0
4. In Sec.  30.5, remove paragraph (c) and redesignate paragraphs (d), 
(e), and (f) as paragraphs (c), (d), and (e), respectively.


Sec.  30.10  [Amended]

0
5. In Sec.  30.10, add at the end of the definition of ``Knowing or 
Knowingly'' the sentence ``For purposes of Sec. Sec.  30.35 and 30.36, 
knowing or knowingly is defined at 12 U.S.C. 1735f-14(g).''

0
6. In Sec.  30.20, revise paragraph (b) to read as follows:


Sec.  30.20  Ethical violations by HUD employees.

* * * * *
    (b) Maximum penalty. The maximum penalty is $19,246 for each 
violation.

0
7. In Sec.  30.25, revise paragraph (b) to read as follows:


Sec.  30.25  Violations by applicants for assistance.

* * * * *
    (b) Maximum penalty. The maximum penalty is $19,246 for each 
violation.

0
8. In Sec.  30.35, remove the words ``Sec. Sec.  203.650 through 
203.664'' in paragraph (a)(7) and add in their place ``Sec.  203.664''; 
and revise the first sentence in paragraph (c)(1) to read as follows:


Sec.  30.35  Mortgagees and lenders.

* * * * *
    (c)(1) Amount of penalty. The maximum penalty is $9,623 for each 
violation, up to a limit of $1,924,589 for all violations committed 
during any one-year period. * * *
* * * * *

0
9. In Sec.  30.36, remove the words ``or correspondent'' in paragraph 
(b)(3) and revise the first sentence in paragraph (c) to read as 
follows:


Sec.  30.36  Other participants in FHA programs.

* * * * *
    (c) Amount of penalty. The maximum penalty is $9,623 for each 
violation, up to a limit of $1,924,589 for all violations committed 
during any one-year period. * * *

0
10. In Sec.  30.40, revise the first sentence in paragraph (c) to read 
as follows:


Sec.  30.40  Loan guarantees for Indian housing.

* * * * *
    (c) Amount of penalty. The maximum penalty is $9,623 for each 
violation, up to a limit of $1,924,589 for all violations committed 
during any one-year period. * * *

0
11. In Sec.  30.45, revise paragraph (g) to read as follows:


Sec.  30.45  Multifamily and section 202 or 811 mortgagors.

* * * * *
    (g) Maximum penalty. The maximum penalty for each violation under 
paragraphs (c) and (f) of this section is $48,114.
* * * * *

0
12. In Sec.  30.50, revise the first sentence in paragraph (c) to read 
as follows:


Sec.  30.50   GNMA issuers and custodians.

* * * * *
    (c) Amount of penalty. The maximum penalty is $9,623 for each 
violation, up to a limit of $1,924,589 during any one-year period. * * 
*

0
13. In Sec.  30.60, revise paragraph (c) to read as follows:


Sec.  30.60  Dealers or sponsored third-party originators.

* * * * *
    (c) Amount of penalty. The maximum penalty is $9,623 for each 
violation, up to a limit for any particular person of $1,924,589 during 
any one-year period.

0
14. In Sec.  30.65, revise paragraph (b) to read as follows:

[[Page 24525]]

Sec.  30.65  Failure to disclose lead-based paint hazards.

* * * * *
    (b) Amount of penalty. The maximum penalty is $17,047 for each 
violation.

0
15. In Sec.  30.68, revise paragraph (c) to read as follows:


Sec.  30.68  Section 8 owners.

* * * * *
    (c) Maximum penalty. The maximum penalty for each violation under 
this section is $37,396.
* * * * *


Sec.  30.80  [Amended]

0
16. In Sec.  30.80, add the word ``and'' after paragraph (h); remove 
paragraph (i); and redesignate paragraphs (j), (k), and (l) as 
paragraphs (i), (j), and (k), respectively.

PART 87--NEW RESTRICTIONS ON LOBBYING

0
17. The authority citation for part 87 continues to read as follows:

    Authority: 28 U.S.C. 1 note; 31 U.S.C. 1352; 42 U.S.C. 3535(d).


0
18. In Sec.  87.400, revise paragraphs (a), (b), and (e) to read as 
follows:


Sec.  87.400  Penalties.

    (a) Any person who makes an expenditure prohibited herein shall be 
subject to a civil penalty of not less than $19,246 and not more than 
$192,459 for each such expenditure.
    (b) Any person who fails to file or amend the disclosure form (see 
appendix B) to be filed or amended if required herein, shall be subject 
to a civil penalty of not less than $19,246 and not more than $192,459 
for each such failure.
* * * * *
    (e) First offenders under paragraphs (a) or (b) of this section 
shall be subject to a civil penalty of $19,246, absent aggravating 
circumstances. Second and subsequent offenses by persons shall be 
subject to an appropriate civil penalty between $19,246 and $192,459, 
as determined by the agency head or his or her designee.
* * * * *

PART 180--CONSOLIDATED HUD HEARING PROCEDURES FOR CIVIL RIGHTS 
MATTERS

0
19. The authority citation for part 180 continues to read as follows:

    Authority: 28 U.S.C. 1 note; 29 U.S.C. 794; 42 U.S.C. 2000d-1, 
3535(d), 3601-3619, 5301-5320, and 6103.


0
20. In Sec.  180.671, revise paragraphs (a)(1), (2), and (3) to read as 
follows:


Sec.  180.671  Assessing civil penalties for Fair Housing Act cases.

    (a) * * *
    (1) $20,111, if the respondent has not been adjudged in any 
administrative hearing or civil action permitted under the Fair Housing 
Act or any state or local fair housing law, or in any licensing or 
regulatory proceeding conducted by a federal, state, or local 
governmental agency, to have committed any prior discriminatory housing 
practice.
    (2) $50,276, if the respondent has been adjudged in any 
administrative hearing or civil action permitted under the Fair Housing 
Act, or under any state or local fair housing law, or in any licensing 
or regulatory proceeding conducted by a federal, state, or local 
government agency, to have committed one other discriminatory housing 
practice and the adjudication was made during the 5-year period 
preceding the date of filing of the charge.
    (3) $100,554, if the respondent has been adjudged in any 
administrative hearings or civil actions permitted under the Fair 
Housing Act, or under any state or local fair housing law, or in any 
licensing or regulatory proceeding conducted by a federal, state, or 
local government agency, to have committed two or more discriminatory 
housing practices and the adjudications were made during the 7-year 
period preceding the date of filing of the charge.
* * * * *

PART 3282--MANUFACTURED HOME PROCEDURAL AND ENFORCEMENT REGULATIONS

0
21. The authority citation for part 3282 continues to read as follows:

    Authority: 28 U.S.C. 1 note; 28 U.S.C. 2461 note; 42 U.S.C. 
3535(d) and 5424.


0
22. Revise Sec.  3282.10 to read as follows:


Sec.  3282.10   Civil and criminal penalties.

    Failure to comply with these regulations may subject the party in 
question to the civil and criminal penalties provided for in section 
611 of the Act, 42 U.S.C. 5410. The maximum amount of penalties imposed 
under section 611 of the Act shall be $2,795 for each violation, up to 
a maximum of $3,493,738 for any related series of violations occurring 
within one year from the date of the first violation.

    Dated: May 22, 2017.
Bethany A. Zorc,
Principal Deputy General Counsel.
[FR Doc. 2017-11056 Filed 5-26-17; 8:45 am]
BILLING CODE 4210-67-P