Adjustment of Civil Monetary Penalties for Inflation, 2062-2065 [2018-00614]
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Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations
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[FR Doc. 2018–00611 Filed 1–12–18; 8:45 am]
BILLING CODE 9110–04–P
DEPARTMENT OF EDUCATION
34 CFR Parts 36 and 668
[Docket ID ED–2018–OGC–0004]
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RIN 1801–AA17
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
SUMMARY:
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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 2018
annual inflation adjustments being
made to the penalty amounts in the
Department’s final regulations
published in the Federal Register on
April 20, 2017 (2017 final rule).
DATES: These regulations are effective
January 15, 2018. The adjusted CMPs
established by these regulations are
applicable only to civil penalties
assessed after January 15, 2018, whose
associated violations occurred after
November 2, 2015.
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
A CMP is defined in the Inflation
Adjustment Act (28 U.S.C. 2461 note) 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 Inflation Adjustment Act
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 its CMPs in the
Federal Register on April 20, 2017 (82
FR 18559), and those adjustments
became effective on the date of
publication.
The 2015 Act (section 701 of Pub.
Law 114–74) amended the Inflation
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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
interim final rule (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).
In these final regulations, based on
the CPI–U for the month of October
2017, not seasonally adjusted, we are
annually adjusting each CMP amount by
a multiplier for 2018 of 1.02041, as
directed by the Office of Management
and Budget (OMB) Memorandum No.
M–18–03 issued on December 15, 2017.
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 penalty amounts are being adjusted
up based on the multiplier of 1.02041
provided in OMB Memorandum No. M–
18–03.
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. Law 105–244, title
I, § 101(a), October 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 2017 final rule, we increased this
amount to $36,849.
New Regulations: The new penalty for
this section is $37,601.
Reason: Using the multiplier of
1.02041 from OMB Memorandum No.
M–18–03, the new penalty is calculated
as follows: $36,849 × 1.02041 =
$37,601.09, which makes the adjusted
penalty $37,601, when rounded to the
nearest dollar.
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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Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations
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. Law 110–315, title II,
§ 201(2), August 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 2017 final rule, we
increased this amount to $30,694.
New Regulations: The new penalty for
this section is $31,320.
Reason: Using the multiplier of
1.02041 from OMB Memorandum No.
M–18–03, the new penalty is calculated
as follows: $30,694 × 1.02041 =
$31,320.46, which makes the adjusted
penalty $31,320, 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. Law 99–498, title IV, § 402(a),
October 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 2017 final rule, we
increased this amount to $54,789.
New Regulations: The new penalty for
this section is $55,907.
Reason: Using the multiplier of
1.02041 from OMB Memorandum No.
M–18–03, the new penalty is calculated
as follows: $54,789 × 1.02041 =
$55,907.24, which makes the adjusted
penalty $55,907, 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. Law 99–498, title
IV, § 407(a), October 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 2017 final rule, we increased this
amount to $54,789.
New Regulations: The new penalty for
this section is $55,907.
Reason: Using the multiplier of
1.02041 from OMB Memorandum No.
M–18–03, the new penalty is calculated
as follows: $54,789 × 1.02041 =
$55,907.24, which makes the adjusted
penalty $55,907, 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. Law
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103–382, title II, § 238, October 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 2017 final rule, we
increased this amount to $1,617.
New Regulations: The new penalty for
this section is $1,650.
Reason: Using the multiplier of
1.02041 from OMB Memorandum No.
M–18–03, the new penalty is calculated
as follows: $1,617 × 1.02041 =
$1,650.00, which makes the adjusted
penalty $1,650, 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 2017 final rule, we
increased these amounts to $19,246 to
$192,459.
New Regulations: The new penalties
for these sections are $19,639 to
$196,387.
Reason: Using the multiplier of
1.02041 from OMB Memorandum No.
M–18–03, the new minimum penalty is
calculated as follows: $19,246 × 1.02041
= $19,638.81, which makes the adjusted
penalty $19,639, when rounded to the
nearest dollar. The new maximum
penalty is calculated as follows:
$192,459 × 1.02041 = $196,387.09,
which makes the adjusted penalty
$196,387, 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. Law 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 2017 final rule,
we increased this amount to $10,957.
New Regulations: The new penalty for
this section is $11,181.
Reason: Using the multiplier of
1.02041 from OMB Memorandum No.
M–18–03, the new penalty is calculated
as follows: $10,957 × 1.02041 =
$11,180.63, which makes the adjusted
penalty $11,181, 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
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2063
regulatory action is ‘‘significant’’ and,
therefore, subject to the requirements of
the Executive order and subject to
review by 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.
We have determined that these final
regulations: (1) Exclusively implement
the annual adjustment; (2) are consistent
with OMB Memorandum No. M–18–03;
and (3) have an annual impact of less
than $100 million. Therefore, based on
OMB Memorandum No. M–18–03, this
is not a significant regulatory action
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
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Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations
(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 and in accordance
with OMB Memorandum No. M–18–03.
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 and that imposes total costs
greater than zero, it must identify two
existing regulations for elimination. For
fiscal year 2018, 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, section
4(b)(2) of the 2015 Act (28 U.S.C. 2461
note) provides that the Secretary can
adjust these 2018 penalty amounts
notwithstanding section 553 of title 5,
United States Code. Therefore, the
requirements of 5 U.S.C. 553 for notice
and comment and delaying the effective
date of a final rule do not apply here.
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
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: January 10, 2018.
Betsy DeVos,
Secretary of Education.
For the reasons discussed in the
preamble, the Secretary amends parts 36
and 668 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 section 701
of Pub. Law 114–74, unless otherwise noted.
2. Section 36.2 is amended by revising
Table I to read as follows:
■
§ 36.2
*
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 teacher-preparation 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.
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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)
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$37,601.
$31,320.
$55,907.
$55,907.
Federal Register / Vol. 83, No. 10 / Tuesday, January 16, 2018 / Rules and Regulations
2065
TABLE I—SECTION 36.2.—CIVIL MONETARY PENALTY INFLATION ADJUSTMENTS—Continued
New maximum (and
minimum, if applicable)
penalty amount
Statute
Description
20 U.S.C. 1228c(c)(2)(E) (Section 429 of the General Education Provisions Act).
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.
31 U.S.C. 1352(c)(1) and (c)(2)(A) ......................................
31 U.S.C. 3802(a)(1) and (a)(2) ...........................................
*
*
*
*
*
This rule is effective on February
15, 2018.
FOR FURTHER INFORMATION CONTACT: Lee
Dickinson, Special Park Use Program
Manager, at (202) 513–7092 or lee_
dickinson@nps.gov.
SUPPLEMENTARY INFORMATION:
DATES:
PART 668—STUDENT ASSISTANCE
GENERAL PROVISIONS
3. The authority citation for part 668
continues to read as follows:
■
Authority: 20 U.S.C. 1001–1003, 1070a,
1070g, 1085, 1087b, 1087d, 1087e, 1088,
1091, 1092, 1094, 1099c, and 1099c–1,
1221e–3, and 3474; Pub. L. 111–256, 124
Stat. 2643; unless otherwise noted.
§ 668.84
Background
Authority and Jurisdiction To
Promulgate Regulations
[Amended]
4. Section 668.84 is amended by, in
paragraph (a), removing the number
‘‘$27,500’’ and adding, in its place, the
number ‘‘$55,907’’.
■
[FR Doc. 2018–00614 Filed 1–12–18; 8:45 am]
BILLING CODE 4000–01–P
DEPARTMENT OF THE INTERIOR
National Park System
National Park Service
36 CFR Part 2
[NPS–WASO–23396; GPO Deposit Account
4311H2]
RIN 1024–AE32
General Regulations; Areas of the
National Park System, Free
Distribution of Other Message-Bearing
Items
National Park Service, Interior.
Final rule.
AGENCY:
ACTION:
The National Park Service
revises its general rule governing the
sale or distribution of printed matter to
include the free distribution of messagebearing items that do not meet the
regulatory definition of ‘‘printed
matter.’’ This change gives visitors an
additional channel of communication
while protecting the resources and
values of the National Park System.
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SUMMARY:
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In the National Park Service (NPS)
Organic Act (54 U.S.C. 100101),
Congress granted the NPS broad
authority to regulate the use of areas
under its jurisdiction. The Organic Act
authorizes the Secretary of the Interior,
acting through the NPS, to ‘‘prescribe
such regulations as the Secretary
considers necessary or proper for the
use and management of [National Park]
System units.’’ 54 U.S.C. 100751(a).
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Consisting of over 400 units in 50
states, the District of Columbia and
multiple territories, the National Park
System covers more than 84 million
acres. These units are located in a wide
range of environments as diverse as the
United States itself. The size of these
units also varies tremendously, ranging
from Wrangell-St. Elias National Park
and National Preserve, Alaska, at 13.2
million acres, to Thaddeus Kosciuszko
National Memorial, Pennsylvania, at
0.02 acres.
About one-third of the units—such as
Great Smoky Mountains National Park,
Tennessee; Grand Canyon National
Park, Arizona; Everglades National Park,
Florida; and Hawaii Volcanoes National
Parks, Hawaii—preserve nature’s many
and varied gifts to the nation. The other
two-thirds of the units recognize
benchmarks of human history in
America. These units protect elements
of great native cultures, far older than
European exploration and settlement;
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$1,650.
$19,639 to $196,387.
$11,181.
preserve battle sites from the
Revolutionary and Civil Wars—
including the key surrender fields of
both great conflicts; embrace Thomas
Edison’s New Jersey laboratories where
he and his staff led a technological
revolution more dramatic even than the
coming of the computer age; and more.
These historical park units reflect the
development of both art and industry in
America, along with landmarks of social
and political change.
As a broader understanding of history
took hold, the National Park System
eventually grew to include the historic
homes of civil rights, political, and
corporate leaders, and the lands of the
poor, struggling to build lives for
themselves on a Nebraska homestead
claim or in an urban community. The
National Park System now embraces the
birthplace, church, and grave of Dr.
Martin Luther King at Martin Luther
King, Jr. National Historical Site,
Georgia; the birth of jazz at New Orleans
Jazz National Historical Park, Louisiana;
the flowering of a literary giant at the
Eugene O’Neill National Historical Site,
California; and the artistic grace of a
great sculptor’s studios at SaintGaudens National Historical Site, New
Hampshire. Because of the lessons they
help us remember, the National Park
System also includes the Japanese
American World War II internment
camp in the desert at Manzanar National
Historical Site, California, as well as
Andersonville National Historical Site,
Georgia, one of the very bleakest of the
Civil War prison sites.
The National Park System is habitat
for 247 threatened or endangered
species, has more than 167 million
items in museum collections, has 75,000
archaeological sites, and 27,000 historic
and prehistoric structures. The National
Park System also has an extensive
physical infrastructure, which includes
thousands of buildings, tens of
thousands of miles of trails and roads,
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]]>Agencies
[Federal Register Volume 83, Number 10 (Tuesday, January 16, 2018)]
[Rules and Regulations]
[Pages 2062-2065]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00614]
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DEPARTMENT OF EDUCATION
34 CFR Parts 36 and 668
[Docket ID ED-2018-OGC-0004]
RIN 1801-AA17
Adjustment of Civil Monetary Penalties for Inflation
AGENCY: Department of Education.
ACTION: Final regulations.
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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 2018 annual inflation adjustments being made to
the penalty amounts in the Department's final regulations published in
the Federal Register on April 20, 2017 (2017 final rule).
DATES: These regulations are effective January 15, 2018. The adjusted
CMPs established by these regulations are applicable only to civil
penalties assessed after January 15, 2018, whose associated violations
occurred after November 2, 2015.
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: [email protected].
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
A CMP is defined in the Inflation Adjustment Act (28 U.S.C. 2461
note) 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 Inflation Adjustment Act 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 its CMPs in the Federal Register on April 20, 2017 (82 FR
18559), and those adjustments became effective on the date of
publication.
The 2015 Act (section 701 of Pub. Law 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 interim final rule
(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).
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\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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In these final regulations, based on the CPI-U for the month of
October 2017, not seasonally adjusted, we are annually adjusting each
CMP amount by a multiplier for 2018 of 1.02041, as directed by the
Office of Management and Budget (OMB) Memorandum No. M-18-03 issued on
December 15, 2017.
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 penalty amounts are
being adjusted up based on the multiplier of 1.02041 provided in OMB
Memorandum No. M-18-03.
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. Law 105-244, title I, Sec.
101(a), October 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 2017 final rule, we increased this amount
to $36,849.
New Regulations: The new penalty for this section is $37,601.
Reason: Using the multiplier of 1.02041 from OMB Memorandum No. M-
18-03, the new penalty is calculated as follows: $36,849 x 1.02041 =
$37,601.09, which makes the adjusted penalty $37,601, when rounded to
the nearest dollar.
[[Page 2063]]
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. Law
110-315, title II, Sec. 201(2), August 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 2017 final rule, we increased this amount
to $30,694.
New Regulations: The new penalty for this section is $31,320.
Reason: Using the multiplier of 1.02041 from OMB Memorandum No. M-
18-03, the new penalty is calculated as follows: $30,694 x 1.02041 =
$31,320.46, which makes the adjusted penalty $31,320, 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. Law 99-498, title
IV, Sec. 402(a), October 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 2017 final rule, we increased this amount to
$54,789.
New Regulations: The new penalty for this section is $55,907.
Reason: Using the multiplier of 1.02041 from OMB Memorandum No. M-
18-03, the new penalty is calculated as follows: $54,789 x 1.02041 =
$55,907.24, which makes the adjusted penalty $55,907, 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. Law 99-
498, title IV, Sec. 407(a), October 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 2017 final rule, we
increased this amount to $54,789.
New Regulations: The new penalty for this section is $55,907.
Reason: Using the multiplier of 1.02041 from OMB Memorandum No. M-
18-03, the new penalty is calculated as follows: $54,789 x 1.02041 =
$55,907.24, which makes the adjusted penalty $55,907, 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. Law 103-382, title II, Sec. 238, October 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 2017 final rule, we increased this
amount to $1,617.
New Regulations: The new penalty for this section is $1,650.
Reason: Using the multiplier of 1.02041 from OMB Memorandum No. M-
18-03, the new penalty is calculated as follows: $1,617 x 1.02041 =
$1,650.00, which makes the adjusted penalty $1,650, 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 2017 final rule, we
increased these amounts to $19,246 to $192,459.
New Regulations: The new penalties for these sections are $19,639
to $196,387.
Reason: Using the multiplier of 1.02041 from OMB Memorandum No. M-
18-03, the new minimum penalty is calculated as follows: $19,246 x
1.02041 = $19,638.81, which makes the adjusted penalty $19,639, when
rounded to the nearest dollar. The new maximum penalty is calculated as
follows: $192,459 x 1.02041 = $196,387.09, which makes the adjusted
penalty $196,387, 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. Law 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
2017 final rule, we increased this amount to $10,957.
New Regulations: The new penalty for this section is $11,181.
Reason: Using the multiplier of 1.02041 from OMB Memorandum No. M-
18-03, the new penalty is calculated as follows: $10,957 x 1.02041 =
$11,180.63, which makes the adjusted penalty $11,181, 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 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.
We have determined that these final regulations: (1) Exclusively
implement the annual adjustment; (2) are consistent with OMB Memorandum
No. M-18-03; and (3) have an annual impact of less than $100 million.
Therefore, based on OMB Memorandum No. M-18-03, this is not a
significant regulatory action 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
[[Page 2064]]
(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 and
in accordance with OMB Memorandum No. M-18-03. 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 and that
imposes total costs greater than zero, it must identify two existing
regulations for elimination. For fiscal year 2018, 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, section 4(b)(2) of the 2015
Act (28 U.S.C. 2461 note) provides that the Secretary can adjust these
2018 penalty amounts notwithstanding section 553 of title 5, United
States Code. Therefore, the requirements of 5 U.S.C. 553 for notice and
comment and delaying the effective date of a final rule do not apply
here.
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 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.
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You may also access documents of the Department published in the
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by the Department.
List of Subjects in 34 CFR Part 36
Claims, Fraud, Penalties.
Dated: January 10, 2018.
Betsy DeVos,
Secretary of Education.
For the reasons discussed in the preamble, the Secretary amends
parts 36 and 668 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 section 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
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New maximum (and minimum, if
Statute Description applicable) penalty amount
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20 U.S.C. 1015(c)(5) (Section 131(c)(5) Provides for a fine, as set by $37,601.
of the Higher Education Act of 1965 Congress in 1998, of up to
(HEA)). $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, as set by $31,320.
205(a)(3) of the HEA). 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 432(g) of Provides for a civil penalty, $55,907.
the HEA). 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) (Section Provides for a civil penalty, $55,907.
487(c)(3)(B) of the HEA). 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.
[[Page 2065]]
20 U.S.C. 1228c(c)(2)(E) (Section 429 Provides for a civil penalty, $1,650.
of the General Education Provisions as set by Congress in 1994, of
Act). 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 (c)(2)(A)..... Provides for a civil penalty, $19,639 to $196,387.
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.
31 U.S.C. 3802(a)(1) and (a)(2)........ Provides for a civil penalty, $11,181.
as set by Congress in 1986, of
up to $5,000 for false claims
and statements made to the
Government.
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* * * * *
PART 668--STUDENT ASSISTANCE GENERAL PROVISIONS
0
3. The authority citation for part 668 continues to read as follows:
Authority: 20 U.S.C. 1001-1003, 1070a, 1070g, 1085, 1087b,
1087d, 1087e, 1088, 1091, 1092, 1094, 1099c, and 1099c-1, 1221e-3,
and 3474; Pub. L. 111-256, 124 Stat. 2643; unless otherwise noted.
Sec. 668.84 [Amended]
0
4. Section 668.84 is amended by, in paragraph (a), removing the number
``$27,500'' and adding, in its place, the number ``$55,907''.
[FR Doc. 2018-00614 Filed 1-12-18; 8:45 am]
BILLING CODE 4000-01-P
