Implementation of the Federal Civil Penalties Inflation Adjustment Act and Adjustment of Amounts for 2018, 2045-2046 [2018-00587]

Download as PDF Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations the availability of this material at NARA, call 202–741–6030, or go to: https:// www.archives.gov/federal-register/cfr/ibrlocations.html. Issued in Renton, Washington, on December 27, 2017. John P. Piccola, Jr., Acting Director, System Oversight Division, Aircraft Certification Service. [FR Doc. 2018–00110 Filed 1–12–18; 8:45 am] BILLING CODE 4910–13–P These adjustments are required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. Effective: This final rule is effective January 15, 2018. DATES: FOR FURTHER INFORMATION CONTACT: Bryan R. Diederich, Office of the General Counsel, NASA Headquarters, telephone (202) 358–0216. SUPPLEMENTARY INFORMATION: I. Background NATIONAL AERONAUTICS AND SPACE ADMINISTRATION 14 CFR Parts 1264 and 1271 [Document Number NASA–17–094: Docket Number–NASA–2017–0004] RIN 2700–AE30 Implementation of the Federal Civil Penalties Inflation Adjustment Act and Adjustment of Amounts for 2018 National Aeronautics and Space Administration. ACTION: Final rule. AGENCY: The National Aeronautics and Space Administration (NASA) has adopted a final rule making inflation adjustments to civil monetary penalties within its jurisdiction. This final rule represents the annual 2018 inflation adjustments of monetary penalties. SUMMARY: The Inflation Adjustment Act, as amended by the 2015 Act, required Federal agencies to adjust the civil penalty amounts within their jurisdiction for inflation by July 1, 2016. Subsequent to the 2016 adjustment, Federal agencies were required to make an annual inflation adjustment by January 15 every year thereafter.1 Agencies were required to make the initial 2016 adjustments through an interim final rulemaking published in the Federal Register.2 Under the amended Act, any increase in a civil penalty made under the Act will apply to penalties assessed after the increase takes effect, including penalties whose associated violation predated the increase.3 The inflation adjustments mandated by the Act serve to maintain the deterrent effect of civil penalties and to promote compliance with the law. 2045 On June 26, 2017, NASA published its interim final rule providing for the initial adjustment called for under the Act.4 The public comment period interim final rule closed on August 24, 2016, and the rule became effective on August 25, 2017. On October 20, 2017, NASA adopted this interim rule as final.5 In its final rule, NASA also amended the interim rule to incorporate the required annual adjustments for 2017. Pursuant to the Act, adjustments to the civil penalties are required to be made by January 15 of each year. The annual adjustments are 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 2018 is 1.02041 percent. Pursuant to the 2015 Act, adjustments are rounded to the nearest dollar. II. The Final Rule This final rule makes the required adjustments to civil penalties for 2018. Applying the 2018 multiplier above, the adjustments for each penalty are summarized below. Penalty description Program Fraud Civil Remedies Act of 1986 ................ Department of the Interior and Related Agencies Appropriations Act of 1989, Public Law 101–121, sec. 319. Department of the Interior and Related Agencies Appropriations Act of 1989, Public Law 101–121, sec. 319. Department of the Interior and Related Agencies Appropriations Act of 1989, Public Law 101–121, sec. 319. Department of the Interior and Related Agencies Appropriations Act of 1989, Public Law 101–121, sec. 319. Maximum Penalties for False Claims ........................... Minimum Penalty for use of appropriated funds to lobby or influence certain contracts. $10,957 19,246 $11,181 19,639 Maximum Penalty for use of appropriated funds to lobby or influence certain contracts. 192,459 196,387 Minimum penalty for failure to report certain lobbying transactions. 19,246 19,639 Maximum penalty for failure to report certain lobbying transactions. 192,459 196,387 daltland on DSKBBV9HB2PROD with RULES This rule codifies these civil penalty amounts by amending parts 1264 and 1271 of title 14 of the CFR. 1 See 28 U.S.C. 2461 note. statute also provides that, for the initial 2016 adjustment, an agency may adjust a civil penalty by less than the otherwise required amount if (1) it determines, after publishing a notice of proposed rulemaking and providing an opportunity for comment, that increasing the civil penalty by the otherwise required amount would have a negative economic impact or that the social costs 2 The VerDate Sep<11>2014 17:55 Jan 12, 2018 Jkt 244001 III. Legal Authority and Effective Date NASA issues this rule under the Federal Civil Penalties Inflation Adjustment Act of 1990,6 as amended by the Debt Collection Improvement Act of increasing the civil penalty by the otherwise required amount outweigh the benefits, and (2) the Director of the Office of Management and Budget concurs with that determination. Inflation Adjustment Act section 4(c), codified at 28 UUSC 2461 note. NASA has chosen not to make use of this exception. 3 Inflation Adjustment Act section 6, codified at 28 U.S.C. 2461 note. PO 00000 Frm 00017 Fmt 4700 Sfmt 4700 2017 penalty Penalty adjusted for 2018 Law of 1996,7 and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015,8 which requires NASA to adjust the civil penalties within its jurisdiction 4 82 FR 28760. FR 48760. 6 Public Law 101–410, 104 Stat. 890 (1990). 7 Public Law 104–134, section 31001(s)(1), 110 Stat. 1321, 1321–373 (1996). 8 Public Law 114–74, section 701, 129 Stat. 584, 599 (2015). 5 82 E:\FR\FM\16JAR1.SGM 16JAR1 2046 Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations for inflation according to a statutorily prescribed formula. Section 553 of title 5 of the United States Code generally requires an agency to publish a rule at least 30 days before its effective date to allow for advance notice and opportunity for public comments.9 After the initial adjustment for 2016, however, the Civil Penalties Inflation Adjustment Act requires agencies to make subsequent annual adjustments for inflation ‘‘notwithstanding section 553 of title 5, United States Code.’’ Moreover, the 2018 adjustments are made according to a statutory formula that does not provide for agency discretion. Accordingly, a delay in effectiveness of the 2018 adjustments is not required. IV. Regulatory Requirements Regulatory Flexibility Act Because no notice of proposed rulemaking is required, the Regulatory Flexibility Act does not require an initial or final regulatory flexibility analysis.10 Authority: Section 319, Pub. L. 101–121 (31 U.S.C. 1352); Pub. L. 97–258 (31 U.S.C. 6301 et seq.) § 1271.400 [Amended] 4. In § 1271.400: a. In paragraphs (a) and (b), remove the words ‘‘not less than $19,246 and not more than $192,459’’ and add in their place the words ‘‘not less than $19,639 and not more than $196,387’’. ■ b. In paragraph (e), remove the two occurrences of ‘‘$19,246’’ and add in their place ‘‘$19,639’’ and remove ‘‘$192,459’’ and add in its place ‘‘$196,387’’. ■ ■ Appendix A to Part 1271 [Amended] 5. In appendix A to part 1271: a. Remove the number ‘‘$19,246’’ everywhere it appears and add in its place the number ‘‘$19,639’’. ■ b. Remove the number ‘‘$192,459’’ everywhere it appears and add in its place the number ‘‘$196,387’’. ■ ■ Nanette J. Smith, NASA Federal Register Liaison Officer. [FR Doc. 2018–00587 Filed 1–12–18; 8:45 am] Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995,11 NASA reviewed this final rule. No collections of information pursuant to the Paperwork Reduction Act are contained in the final rule. List of Subjects in 14 CFR Parts 1264 and 1271 BILLING CODE 7510–13–P SECURITIES AND EXCHANGE COMMISSION 17 CFR Part 230 [Release No. 33–10450; File No. S7–09–14] RIN 3235–AL41 Claims, Lobbying, Penalties. For the reasons stated in the preamble, the National Aeronautics and Space Administration is amending 14 CFR parts 1264 and 1271 as follows: Treatment of Certain Communications Involving Security-Based Swaps That May Be Purchased Only by Eligible Contract Participants Securities and Exchange Commission. ACTION: Final rule. AGENCY: PART 1264—IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL PENALTIES ACT OF 1986 We are adopting a rule under the Securities Act of 1933 (‘‘Securities Act’’) to provide that certain communications involving securitybased swaps will not be deemed to constitute ‘‘offers’’ of such securitybased swaps for purposes of Section 5 of the Securities Act. The final rule covers the publication or distribution of price quotes that relate to security-based swaps that may be purchased only by persons who are eligible contract participants (‘‘covered SBS’’) and are traded or processed on or through certain trading platforms. The final rule also covers a broker, dealer, or securitybased swap dealer’s publication or distribution of written communications that discuss covered SBS and that meet the definition of ‘‘research report’’ in SUMMARY: 1. The authority citation for part 1264 continues to read as follows: ■ Authority: 31 U.S.C. 3809, 51 U.S.C. 20113(a). § 1264.102 [Amended] 2. In § 1264.102, remove the number ‘‘$10,957’’ everywhere it appears and add in its place the number ‘‘$11,181’’. ■ daltland on DSKBBV9HB2PROD with RULES PART 1271—NEW RESTRICTIONS ON LOBBYING 3. The authority citation for part 1271 continues to read as follows: ■ 9 See 5 U.S.C. 533(d). U.S.C. 603(a), 604(a). 11 44 U.S.C. 3506. 10 5 VerDate Sep<11>2014 16:55 Jan 12, 2018 Jkt 244001 PO 00000 Frm 00018 Fmt 4700 Sfmt 4700 Rule 139(d) under the Securities Act and certain other conditions. DATES: Effective January 16, 2018. FOR FURTHER INFORMATION CONTACT: Andrew Schoeffler, Special Counsel, Office of Capital Markets Trends, Division of Corporation Finance, at (202) 551–3860, U.S. Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549–3628. SUPPLEMENTARY INFORMATION: We are adopting Rule 135d under the Securities Act.1 I. Background and Summary On July 21, 2010, President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act (‘‘Dodd-Frank Act’’) 2 into law. Title VII of the Dodd-Frank Act (‘‘Title VII’’) provides the Securities and Exchange Commission (‘‘SEC’’ or the ‘‘Commission’’) and the Commodity Futures Trading Commission (‘‘CFTC’’) with the authority to regulate over-thecounter derivatives. Under Title VII, the CFTC regulates ‘‘swaps,’’ the SEC regulates ‘‘security-based swaps,’’ and the CFTC and SEC jointly regulate ‘‘mixed swaps.’’ 3 Title VII amended the Securities Act and the Securities Exchange Act of 1934 (‘‘Exchange Act’’) 4 to include ‘‘securitybased swaps’’ in the definition of ‘‘security.’’ 5 As a result, ‘‘security-based swaps’’ are subject to the Securities Act and the Exchange Act and the rules and regulations thereunder. Section 5 of the Securities Act requires that any offer or sale of a security must either be registered under the Securities Act or be made pursuant to an exemption from registration.6 As a result, counterparties 1 15 U.S.C. 77a et seq. Law 111–203, 124 Stat. 1376 (2010). 3 The SEC and the CFTC, in consultation with the Board of Governors of the Federal Reserve System, jointly further defined the product and intermediary terms used in Title VII, including ‘‘swap,’’ ‘‘security-based swap,’’ ‘‘swap dealer,’’ ‘‘security-based swap dealer,’’ ‘‘major swap participant,’’ ‘‘major security-based swap participant,’’ ‘‘eligible contract participant,’’ and ‘‘security-based swap agreement.’’ See Further Definition of ‘‘Swap Dealer,’’ ‘‘Security-Based Swap Dealer,’’ ‘‘Major Swap Participant,’’ ‘‘Major Security-Based Swap Participant’’ and ‘‘Eligible Contract Participant’’, Release No. 34–66868 (Apr. 27, 2012), 77 FR 30596 (May 23, 2012) (‘‘Intermediary Definitions Adopting Release’’), and Further Definition of ‘‘Swap,’’ ‘‘Security-Based Swap,’’ and ‘‘Security-Based Swap Agreement’’; Mixed Swaps; Security-Based Swap Agreement Recordkeeping, Release No. 33–9338 (Jul. 18, 2012), 77 FR 48208 (Aug. 13, 2012) (‘‘Product Definitions Adopting Release’’). 4 15 U.S.C. 78a et seq. 5 See Sections 761(a)(2) and 768(a)(1) of the Dodd-Frank Act (amending Section 3(a)(10) of the Exchange Act [15 U.S.C. 78c(a)(10)] and Section 2(a)(1) of the Securities Act [15 U.S.C. 77b(a)(1)], respectively). 6 See 15 U.S.C. 77e. 2 Public E:\FR\FM\16JAR1.SGM 16JAR1

Agencies

[Federal Register Volume 83, Number 10 (Tuesday, January 16, 2018)]
[Rules and Regulations]
[Pages 2045-2046]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00587]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

14 CFR Parts 1264 and 1271

[Document Number NASA-17-094: Docket Number-NASA-2017-0004]
RIN 2700-AE30


Implementation of the Federal Civil Penalties Inflation 
Adjustment Act and Adjustment of Amounts for 2018

AGENCY: National Aeronautics and Space Administration.

ACTION: Final rule.

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

SUMMARY: The National Aeronautics and Space Administration (NASA) has 
adopted a final rule making inflation adjustments to civil monetary 
penalties within its jurisdiction. This final rule represents the 
annual 2018 inflation adjustments of monetary penalties. These 
adjustments are required by the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015.

DATES: Effective: This final rule is effective January 15, 2018.

FOR FURTHER INFORMATION CONTACT: Bryan R. Diederich, Office of the 
General Counsel, NASA Headquarters, telephone (202) 358-0216.

SUPPLEMENTARY INFORMATION:

I. Background

    The Inflation Adjustment Act, as amended by the 2015 Act, required 
Federal agencies to adjust the civil penalty amounts within their 
jurisdiction for inflation by July 1, 2016. Subsequent to the 2016 
adjustment, Federal agencies were required to make an annual inflation 
adjustment by January 15 every year thereafter.\1\ Agencies were 
required to make the initial 2016 adjustments through an interim final 
rulemaking published in the Federal Register.\2\ Under the amended Act, 
any increase in a civil penalty made under the Act will apply to 
penalties assessed after the increase takes effect, including penalties 
whose associated violation predated the increase.\3\ The inflation 
adjustments mandated by the Act serve to maintain the deterrent effect 
of civil penalties and to promote compliance with the law.
---------------------------------------------------------------------------

    \1\ See 28 U.S.C. 2461 note.
    \2\ The statute also provides that, for the initial 2016 
adjustment, an agency may adjust a civil penalty by less than the 
otherwise required amount if (1) it determines, after publishing a 
notice of proposed rulemaking and providing an opportunity for 
comment, that increasing the civil penalty by the otherwise required 
amount would have a negative economic impact or that the social 
costs of increasing the civil penalty by the otherwise required 
amount outweigh the benefits, and (2) the Director of the Office of 
Management and Budget concurs with that determination. Inflation 
Adjustment Act section 4(c), codified at 28 UUSC 2461 note. NASA has 
chosen not to make use of this exception.
    \3\ Inflation Adjustment Act section 6, codified at 28 U.S.C. 
2461 note.
---------------------------------------------------------------------------

    On June 26, 2017, NASA published its interim final rule providing 
for the initial adjustment called for under the Act.\4\ The public 
comment period interim final rule closed on August 24, 2016, and the 
rule became effective on August 25, 2017. On October 20, 2017, NASA 
adopted this interim rule as final.\5\ In its final rule, NASA also 
amended the interim rule to incorporate the required annual adjustments 
for 2017.
---------------------------------------------------------------------------

    \4\ 82 FR 28760.
    \5\ 82 FR 48760.
---------------------------------------------------------------------------

    Pursuant to the Act, adjustments to the civil penalties are 
required to be made by January 15 of each year. The annual adjustments 
are 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 
2018 is 1.02041 percent. Pursuant to the 2015 Act, adjustments are 
rounded to the nearest dollar.

II. The Final Rule

    This final rule makes the required adjustments to civil penalties 
for 2018. Applying the 2018 multiplier above, the adjustments for each 
penalty are summarized below.

----------------------------------------------------------------------------------------------------------------
                                                                                                      Penalty
                      Law                              Penalty description         2017 penalty    adjusted for
                                                                                                       2018
----------------------------------------------------------------------------------------------------------------
Program Fraud Civil Remedies Act of 1986......  Maximum Penalties for False              $10,957         $11,181
                                                 Claims.
Department of the Interior and Related          Minimum Penalty for use of                19,246          19,639
 Agencies Appropriations Act of 1989, Public     appropriated funds to lobby or
 Law 101-121, sec. 319.                          influence certain contracts.
Department of the Interior and Related          Maximum Penalty for use of               192,459         196,387
 Agencies Appropriations Act of 1989, Public     appropriated funds to lobby or
 Law 101-121, sec. 319.                          influence certain contracts.
Department of the Interior and Related          Minimum penalty for failure to            19,246          19,639
 Agencies Appropriations Act of 1989, Public     report certain lobbying
 Law 101-121, sec. 319.                          transactions.
Department of the Interior and Related          Maximum penalty for failure to           192,459         196,387
 Agencies Appropriations Act of 1989, Public     report certain lobbying
 Law 101-121, sec. 319.                          transactions.
----------------------------------------------------------------------------------------------------------------

    This rule codifies these civil penalty amounts by amending parts 
1264 and 1271 of title 14 of the CFR.

III. Legal Authority and Effective Date

    NASA issues this rule under the Federal Civil Penalties Inflation 
Adjustment Act of 1990,\6\ as amended by the Debt Collection 
Improvement Act of 1996,\7\ and further amended by the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015,\8\ which 
requires NASA to adjust the civil penalties within its jurisdiction

[[Page 2046]]

for inflation according to a statutorily prescribed formula.
---------------------------------------------------------------------------

    \6\ Public Law 101-410, 104 Stat. 890 (1990).
    \7\ Public Law 104-134, section 31001(s)(1), 110 Stat. 1321, 
1321-373 (1996).
    \8\ Public Law 114-74, section 701, 129 Stat. 584, 599 (2015).
---------------------------------------------------------------------------

    Section 553 of title 5 of the United States Code generally requires 
an agency to publish a rule at least 30 days before its effective date 
to allow for advance notice and opportunity for public comments.\9\ 
After the initial adjustment for 2016, however, the Civil Penalties 
Inflation Adjustment Act requires agencies to make subsequent annual 
adjustments for inflation ``notwithstanding section 553 of title 5, 
United States Code.'' Moreover, the 2018 adjustments are made according 
to a statutory formula that does not provide for agency discretion. 
Accordingly, a delay in effectiveness of the 2018 adjustments is not 
required.
---------------------------------------------------------------------------

    \9\ See 5 U.S.C. 533(d).
---------------------------------------------------------------------------

IV. Regulatory Requirements

Regulatory Flexibility Act

    Because no notice of proposed rulemaking is required, the 
Regulatory Flexibility Act does not require an initial or final 
regulatory flexibility analysis.\10\
---------------------------------------------------------------------------

    \10\ 5 U.S.C. 603(a), 604(a).
---------------------------------------------------------------------------

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995,\11\ NASA 
reviewed this final rule. No collections of information pursuant to the 
Paperwork Reduction Act are contained in the final rule.
---------------------------------------------------------------------------

    \11\ 44 U.S.C. 3506.
---------------------------------------------------------------------------

List of Subjects in 14 CFR Parts 1264 and 1271

    Claims, Lobbying, Penalties.

    For the reasons stated in the preamble, the National Aeronautics 
and Space Administration is amending 14 CFR parts 1264 and 1271 as 
follows:

PART 1264--IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL PENALTIES ACT 
OF 1986

0
1. The authority citation for part 1264 continues to read as follows:

    Authority: 31 U.S.C. 3809, 51 U.S.C. 20113(a).


Sec.  1264.102  [Amended]

0
2. In Sec.  1264.102, remove the number ``$10,957'' everywhere it 
appears and add in its place the number ``$11,181''.

PART 1271--NEW RESTRICTIONS ON LOBBYING

0
3. The authority citation for part 1271 continues to read as follows:

    Authority:  Section 319, Pub. L. 101-121 (31 U.S.C. 1352); Pub. 
L. 97-258 (31 U.S.C. 6301 et seq.)


Sec.  1271.400  [Amended]

0
4. In Sec.  1271.400:
0
a. In paragraphs (a) and (b), remove the words ``not less than $19,246 
and not more than $192,459'' and add in their place the words ``not 
less than $19,639 and not more than $196,387''.
0
b. In paragraph (e), remove the two occurrences of ``$19,246'' and add 
in their place ``$19,639'' and remove ``$192,459'' and add in its place 
``$196,387''.

Appendix A to Part 1271 [Amended]

0
5. In appendix A to part 1271:
0
a. Remove the number ``$19,246'' everywhere it appears and add in its 
place the number ``$19,639''.
0
b. Remove the number ``$192,459'' everywhere it appears and add in its 
place the number ``$196,387''.

Nanette J. Smith,
NASA Federal Register Liaison Officer.
[FR Doc. 2018-00587 Filed 1-12-18; 8:45 am]
BILLING CODE 7510-13-P
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