Civil Monetary Penalties Inflation Adjustments, 7361-7363 [2018-03490]
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Federal Register / Vol. 83, No. 35 / Wednesday, February 21, 2018 / Rules and Regulations
For the reasons set forth in the
preamble, 7 CFR part 986 is amended as
follows:
■
PART 986—PECANS GROWN IN THE
STATES OF ALABAMA, ARKANSAS,
ARIZONA, CALIFORNIA, FLORIDA,
GEORGIA, KANSAS, LOUISIANA,
MISSOURI, MISSISSIPPI, NORTH
CAROLINA, NEW MEXICO,
OKLAHOMA, SOUTH CAROLINA, AND
TEXAS
(a) Report of shipments and inventory
on hand. Handlers shall submit to the
Council, by the tenth day of the month
following the month of activity, a report
of all shipments, inventory, and
committed inventory for pecans. Should
the tenth day of the month fall on a
weekend or holiday, reports are due by
the first business day following the
tenth day of the month. The report shall
be submitted to the Council on APC
Form 2 and contain the following
information:
(1) The name and address of the
handler;
(2) The month covered by the report;
(3) The weight of all shipments of
pecans, inshell and shelled, and interhandler transfers shipped and received
during the reporting period;
(4) The weight of all shipments of
pecans, inshell and shelled, and interhandler transfers shipped and received
in the previous month and year to date;
(5) Total inventory held by handler;
(6) All the inventory committed
(pecans not shipped, but sold or
otherwise obligated) whether for
domestic sale or export; and,
(7) The weight of all shelled or inshell
pecans under contract for purchase from
other handlers.
(b) Exports by country of destination.
Handlers shall submit to the Council, by
the tenth day of the month following the
month of shipment, a report of exports.
Should the tenth day of the month fall
on a weekend or holiday, reports are
due by the first business day following
the tenth day of the month. The report
shall be reported to the Council on APC
Form 3 and contain the following
information:
(1) The name and address of the
handler;
(2) The month covered by the report;
(3) The total weight of pecans shipped
for export, whether inshell, shelled, or
substandard during the reporting
period;
(4) The total weight of pecans shipped
for export, whether inshell, shelled, or
substandard during the previous period
and year to date; and,
(5) The destination(s) of such exports.
(c) Inshell pecans exported to Mexico
for shelling and returned to the United
States as shelled meats. Handlers shall
submit to the Council, by the tenth day
of the month following the month of
shipment, a report of all inshell pecans
exported to Mexico for shelling and
returned to the United States as shelled
pecans. Should the tenth day of the
month fall on a weekend or holiday,
1. The authority citation for 7 CFR
part 986 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Add § 986.177 to subpart B to read
as follows:
■
daltland on DSKBBV9HB2PROD with RULES
§ 986.177 Reports of pecans received by
handlers.
(a) Summary report U.S. pecans
received for your own account. Handlers
shall submit to the Council, by the tenth
day of the month, a summary report of
inshell domestic pecans received during
the preceding month. Should the tenth
day of the month fall on a weekend or
holiday, reports are due by the first
business day following the tenth day of
the month. The report shall be
submitted to the Council on APC Form
1 and contain the following information:
(1) The name and address of the
handler;
(2) The month covered by the report;
(3) The total weight and type of
inshell pecans received, and the weight
by variety for improved pecans received
during the reporting period;
(4) The total weight and type of
inshell pecans received, and the weight
by variety for improved pecans received
year to date; and,
(5) Assessments due on pecans
received during the reporting period to
be paid by the due date of the report.
(b) Pecans purchased outside the
United States. Handlers shall submit to
the Council, by the tenth day of the
month, a summary report of shelled and
inshell pecans imported during the
preceding month. Should the tenth day
of the month fall on a weekend or
holiday, reports are due by the first
business day following the tenth day of
the month. The report shall be
submitted to the Council on APC Form
6 and contain the following information:
(1) The name and address of the
handler;
(2) The month covered by the report;
(3) The date the pecans were
imported;
(4) The country of origin; and,
(5) The total weight of shelled and
inshell pecans received, and the weight
by variety for improved pecans
received.
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16:21 Feb 20, 2018
Jkt 244001
3. Add § 986.178 to subpart B to read
as follows:
§ 986.178
PO 00000
Other reports.
Frm 00005
Fmt 4700
Sfmt 4700
7361
reports are due by the first business day
following the tenth day of the month.
The report shall be submitted to the
Council on APC Form 5 and contain the
following information:
(1) The name and address of the
handler;
(2) The month covered by the report;
(3) The date of inshell shipment(s);
(4) The weight of pecans exported for
shelling;
(5) The date shelled pecans returned
to the United States after shelling;
(6) The weight of shelled pecans
returned to the United States after
shelling; and
(7) The total weight of inshell pecans
exported to Mexico for shelling, and
shelled pecans returned from Mexico,
year to date.
Dated: February 15, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 2018–03500 Filed 2–20–18; 8:45 am]
BILLING CODE 3410–02–P
SMALL BUSINESS ADMINISTRATION
13 CFR Parts 107, 120, 142, and 146
RIN 3245–AG96
Civil Monetary Penalties Inflation
Adjustments
U.S. Small Business
Administration.
ACTION: Final rule.
AGENCY:
The Small Business
Administration (SBA) is amending its
regulations to adjust for inflation the
amount of certain civil monetary
penalties that are within the jurisdiction
of the agency. These adjustments
comply with the requirement in the
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended by
the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015, to make annual adjustments to the
penalties.
DATES: Effective Date: This rule is
effective February 21, 2018.
FOR FURTHER INFORMATION CONTACT:
Arlene Embrey, 202–205–6976, or at
arlene.embrey@sba.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
On November 2, 2015, the Federal
Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (the 2015
Inflation Adjustment Improvements
Act), Public Law 114–74, 129 Stat. 584,
was enacted. This act amended the
Federal Civil Penalties Inflation
E:\FR\FM\21FER1.SGM
21FER1
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7362
Federal Register / Vol. 83, No. 35 / Wednesday, February 21, 2018 / Rules and Regulations
Adjustment Act of 1990, Public Law
101–410, 104 Stat 890 (the 1990
Inflation Adjustment Act), to improve
the effectiveness of civil monetary
penalties and to maintain their deterrent
effect. The 2015 Inflation Adjustment
Improvements Act required agencies to
issue an interim final rule by August 1,
2016, to adjust the level of civil
monetary penalties with an initial
‘‘catch-up’’ adjustment, and to annually
adjust these monetary penalties for
inflation by January 15 of each
subsequent year. The act authorizes
agencies to implement the annual
adjustments without regard to the
requirements for public notice and
comment or delayed effective date
under the Administrative Procedures
Act (the APA), 5 U.S.C. 553(b)(3)(B) and
(d)(3), respectively.
In addition, based on the definition of
a ‘‘civil monetary penalty’’ in the 1990
Inflation Adjustment Act, agencies are
to make adjustments only to the civil
penalties that (i) are for a specific
monetary amount as provided by
Federal law or have a maximum amount
provided for by Federal law; (ii) are
assessed or enforced by an agency; and
(iii) are enforced or assessed in an
administrative proceeding or a civil
action in the Federal courts. Therefore,
penalties that are stated as a percentage
of an indeterminate amount or as a
function of a violation (penalties that
encompass actual damages incurred) are
not to be adjusted.
On May 19, 2016, SBA published an
interim final rule with its initial
adjustments to the civil monetary
penalties, including an initial ‘‘catchup’’ adjustment. 81 FR 31489. These
adjusted penalties became effective on
August 1, 2016. SBA published its first
annual adjustments to the monetary
penalties in the Federal Register on
February 9, 2017 (82 FR 9967), with an
immediate effective date. This rule will
establish the adjusted penalty amounts
for 2018.
According to the 2015 Inflation
Adjustment Improvements Act and the
Office of Management and Budget
implementing guidance in M–18–03,
Implementation of Penalty Inflation
Adjustments for 2018, Pursuant to the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015, (December 15, 2017), the formula
for calculating the annual adjustments is
based on the Consumer Price Index for
all Urban Consumers (CPI–U) for the
month of October preceding the
adjustment, and specifically on the
change between the October CPI–U
preceding the date of adjustment and
the prior year’s CPI–U. Based on this
methodology, the 2018 civil monetary
VerDate Sep<11>2014
16:21 Feb 20, 2018
Jkt 244001
penalty adjustment is 1.02041 (October
2017 CPI–U (246.663)/October 2016
CPI–U (241.729) = 1.02041). The annual
adjustments identified in this rule were
obtained by applying this multiplier to
the most recently adjusted penalty
amounts that were published on
February 9, 2017 (82 FR 9967).
II. Civil Money Penalties Adjusted by
This Rule
This rule makes adjustments to civil
monetary penalties authorized by the
Small Business Act, the Small Business
Investment Act of 1958 (SBIAct), the
Program Fraud Civil Remedies Act, and
the Byrd Amendment to the Federal
Regulation of Lobbying Act. These
penalties and the implementing
regulations are discussed below.
1. 13 CFR 107.665—Civil Penalties
SBA licenses, regulates and provides
financial assistance to financial entities
called small business investment
companies (SBICs). Pursuant to section
315 of the SBIAct, 15 U.S.C. 687g, SBA
may impose a penalty on any SBIC for
each day that it fails to comply with
SBA’s regulations or directives
governing the filing of regular or special
reports. The penalty for non-compliance
is incorporated in § 107.665 of the SBIC
program regulations.
This rule amends § 107.665 to adjust
the current civil penalty from $254 to
$259 for each day an SBIC fails to file
a required report. The current civil
penalty amount of $254 was multiplied
by the multiplier of 1.02041 to reach a
product of $259, rounded to the nearest
dollar.
2. 13 CFR 120.465—Civil Penalty for
Late Submission of Required Reports
According to the regulations at
§ 120.465, any SBA Supervised Lender,
as defined in 13 CFR 120.10, that
violates a regulation or written directive
issued by the SBA Administrator
regarding the filing of any regular or
special report is subject to the civil
penalty amount stated in § 120.465(b)
for each day the company fails to file
the report, unless the SBA Supervised
Lender can show that there is
reasonable cause for its failure to file.
This penalty is authorized by section
23(j)(1) of the Small Business Act, 15
U.S.C. 650(j)(1).
This rule amends § 120.465 to adjust
the current civil penalty to $6,460 per
day for failure to file. The current civil
penalty of $6,331 was multiplied by the
multiplier of 1.02041 to reach a product
of $6,460, rounded to the nearest dollar.
PO 00000
Frm 00006
Fmt 4700
Sfmt 4700
3. 13 CFR 142.1—Overview of
Regulations
SBA has promulgated regulations at
13 CFR part 142 to implement the civil
penalties authorized by the Program
Fraud Civil Remedies Act of 1986
(PFCRA), 31 U.S.C. 3801–3812. The
current electronic Code of Federal
Regulations (eCFR) at § 142.1(b) states
that a person who submits, or causes to
be submitted, a false claim or a false
statement to SBA is subject to a civil
penalty of not more than $10,781, for
each statement or claim. However, this
amount reflected in the eCFR is
incorrect. Rather, the correct adjusted
amount for 2017, as published in the
February 9, 2017 rule, was $10,957 (the
product of $10,781 and the multiplier of
1.10636). Therefore, this final rule
makes the required adjustment for 2018
based on the correct published amount
of $10,957. Accordingly, the rule
amends § 142.1(b) to adjust the current
civil penalty to $11,181 per statement or
claim. The adjusted civil penalty
amount was calculated by multiplying
the civil penalty amount of $10,957 by
the multiplier of 1.02041 to reach a
product of $11,181, rounded to the
nearest dollar.
4. 13 CFR 146.400—Penalties
SBA’s regulations at 13 CFR part 146
govern lobbying activities by recipients
of federal financial assistance. These
regulations implement the authority in
31 U.S.C. 1352, which was established
in 1989, and impose penalties on any
recipient that fails to comply with
certain requirements in the part.
Specifically, under § 146.400(a) and (b),
penalties may be imposed on those who
make prohibited expenditures or fail to
file the required disclosure forms or to
amend such forms, if necessary.
This rule amends § 146.400(a) and (b),
to adjust the current civil penalty
amounts to ‘‘not less than $19,639 and
not more than $196,387.’’ The current
civil penalty amounts of $19,246 and
$192,459 were multiplied by the
multiplier of 1.02041 to reach a product
of $19,639 and $196,387, respectively,
rounded to the nearest dollar.
This rule also amends § 146.400(e) to
adjust the civil penalty that may be
imposed for a first time violation of
§ 146.400(a) and (b) to a maximum of
$19,639 and to adjust the civil penalty
that may be imposed for second and
subsequent offenses to ‘‘not less than
$19,639 and not more than $196,387.’’
The current civil penalty amounts of
$19,246 and $192,459 were multiplied
by the multiplier of 1.02041 to reach a
product of $19,639 and $196,387,
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Federal Register / Vol. 83, No. 35 / Wednesday, February 21, 2018 / Rules and Regulations
Executive Order 13771
respectively, rounded to the nearest
dollar.
III. Justification for Final Rule
The Inflation Adjustment Act
provides that agencies shall annually
adjust civil monetary penalties for
inflation notwithstanding Section 553 of
the APA. Additionally, the Inflation
Adjustment Act provides a
nondiscretionary cost-of-living formula
for annual adjustment of the civil
monetary penalties. For these reasons,
the requirements in sections 553(b), (c),
and (d) of the APA, relating to notice
and comment and requiring that a rule
be effective 30 days after publication in
the Federal Register, are inapplicable.
IV. Justification for Immediate Effective
Date
Section 553(d) requires agencies to
publish their rules at least 30 days
before their effective dates, except if the
agency finds for good cause that the
delay is impracticable, unnecessary, or
contrary to the public interest. By
expressly exempting this rule from
section 553, the 2015 Inflation
Adjustment Improvements Act has
provided SBA with the good cause
justification for this rule to become
effective on the date it is published in
the Federal Register.
Compliance With Executive Orders
12866, 12988, 13132, 13771, and the
Paperwork Reduction Act (44 U.S.C. Ch.
35) and the Regulatory Flexibility Act (5
U.S.C. 601–612)
Executive Order 12866
The Office of Management and Budget
has determined that this final rule is not
a significant regulatory action under
Executive Order 12866. This is also not
a major rule under the Congressional
Review Act, 5 U.S.C. 800.
daltland on DSKBBV9HB2PROD with RULES
Executive Order 12988
This action meets applicable
standards set forth in Sections 3(a) and
3(b)(2) of Executive Order 12988, Civil
Justice Reform, to minimize litigation,
eliminate ambiguity, and reduce
burden. The action does not have
retroactive or preemptive effect.
Executive Order 13132
For the purpose of Executive Order
13132, SBA has determined that the rule
will not have substantial direct effects
on the States, on the relationship
between the national government and
the States, or on the distribution of
power and responsibilities among the
various levels of government. Therefore,
this final rule has no federalism
implications warranting preparation of a
federalism assessment.
VerDate Sep<11>2014
16:21 Feb 20, 2018
Jkt 244001
§ 107.665
This rule is not an Executive Order
13771 regulatory action because this
rule is not significant under Executive
Order 12866.
■
Paperwork Reduction Act
7363
■
SBA has determined that this rule
does not impose additional reporting or
recordkeeping requirements.
Regulatory Flexibility Act (RFA)
The RFA requires agencies to consider
the effect of their regulatory actions on
small entities, including small nonprofit businesses, and small local
governments. Pursuant to the RFA,
when an agency issues a rule the agency
must prepare an analysis that describes
whether the impact of the rule will have
a significant economic impact on a
substantial number of such small
entities. However, the RFA requires
such analysis only where notice and
comment rulemaking is required. As
stated above, SBA has express statutory
authority to issue this rule without
regard to the notice and comment
requirement of the Administrative
Procedure Act. Since notice and
comment is not required before this rule
is issued, SBA is not required to prepare
a regulatory analysis.
[Amended]
2. In § 107.665, remove ‘‘$254’’ and
add in its place ‘‘$259’’.
PART 120—BUSINESS LOANS
3. The authority citation for part 120
continues to read as follows:
Authority: 15 U.S.C. 634(b)(6), (b)(7),
(b)(14), (h) and note, 636(a), (h) and (m), 650,
687(f), 696(3) and 697(a) and (e); Pub. L. 111–
5, 123 Stat. 115; Pub. L. 111–240, 124 Stat.
2504; Pub. L. 114–38, 129 Stat. 437.
§ 120.465
[Amended]
4. In § 120.465, amend paragraph (b)
by removing ‘‘$6,331’’ and adding in its
place ‘‘$6,460’’.
■
PART 142—PROGRAM FRAUD CIVIL
REMEDIES ACT REGULATIONS
5. The authority citation for part 142
continues to read as follows:
■
Authority: 15 U.S.C. 634(b); 31 U.S.C.
3803(g)(2).
§ 142.1
[Amended]
6. In § 142.1, amend paragraph (b) by
removing ‘‘$10,781’’ and adding in its
place ‘‘$11,181’’.
■
PART 146—NEW RESTRICTIONS ON
LOBBYING
7. The authority citation for part 146
continues to read as follows:
■
List of Subjects
13 CFR Part 107
Investment companies, Loan
programs—business, Reporting and
recordkeeping requirements, Small
businesses.
13 CFR Part 120
Loan programs—business, Reporting
and recordkeeping requirements, Small
businesses.
13 CFR Part 142
Administrative practice and
procedure, Claims, Fraud, Penalties.
Authority: Section 319, Pub. L. 101–121
(31 U.S.C. 1352); 15 U.S.C. 634(b)(6).
§ 146.400
[Amended]
8. In § 146.400, amend paragraphs (a),
(b), and (e) by removing ‘‘$19,246’’
wherever it appears and adding in its
place ‘‘$19,639’’ and by removing
‘‘$192,459’’ and adding in its place
‘‘$196,387’’.
■
Dated: February 12, 2018.
Linda E. McMahon,
Administrator.
[FR Doc. 2018–03490 Filed 2–20–18; 8:45 am]
BILLING CODE 8025–01–P
13 CFR Part 146
Government contracts, Grant
programs, Loan programs, Lobbying,
Penalties, Reporting and recordkeeping
requirements.
DEPARTMENT OF TRANSPORTATION
For the reasons set forth in the
preamble, SBA amends 13 CFR parts
107, 120, 142, and 146 as follows:
14 CFR Part 71
PART 107—SMALL BUSINESS
INVESTMENT COMPANIES
1. The authority citation for part 107
continues to read as follows:
■
Authority: 15 U.S.C. 681, 683, 687(c), 687b,
687d, 687g, 687m.
PO 00000
Frm 00007
Fmt 4700
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Federal Aviation Administration
[Docket No. FAA–2017–0856; Airspace
Docket No. 17–AWP–10]
Amendment of Class E Airspace;
Hanford, CA
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
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Agencies
[Federal Register Volume 83, Number 35 (Wednesday, February 21, 2018)]
[Rules and Regulations]
[Pages 7361-7363]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-03490]
=======================================================================
-----------------------------------------------------------------------
SMALL BUSINESS ADMINISTRATION
13 CFR Parts 107, 120, 142, and 146
RIN 3245-AG96
Civil Monetary Penalties Inflation Adjustments
AGENCY: U.S. Small Business Administration.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Small Business Administration (SBA) is amending its
regulations to adjust for inflation the amount of certain civil
monetary penalties that are within the jurisdiction of the agency.
These adjustments comply with the requirement in the Federal Civil
Penalties Inflation Adjustment Act of 1990, as amended by the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015, to
make annual adjustments to the penalties.
DATES: Effective Date: This rule is effective February 21, 2018.
FOR FURTHER INFORMATION CONTACT: Arlene Embrey, 202-205-6976, or at
[email protected].
SUPPLEMENTARY INFORMATION:
I. Background
On November 2, 2015, the Federal Civil Penalties Inflation
Adjustment Act Improvements Act of 2015 (the 2015 Inflation Adjustment
Improvements Act), Public Law 114-74, 129 Stat. 584, was enacted. This
act amended the Federal Civil Penalties Inflation
[[Page 7362]]
Adjustment Act of 1990, Public Law 101-410, 104 Stat 890 (the 1990
Inflation Adjustment Act), to improve the effectiveness of civil
monetary penalties and to maintain their deterrent effect. The 2015
Inflation Adjustment Improvements Act required agencies to issue an
interim final rule by August 1, 2016, to adjust the level of civil
monetary penalties with an initial ``catch-up'' adjustment, and to
annually adjust these monetary penalties for inflation by January 15 of
each subsequent year. The act authorizes agencies to implement the
annual adjustments without regard to the requirements for public notice
and comment or delayed effective date under the Administrative
Procedures Act (the APA), 5 U.S.C. 553(b)(3)(B) and (d)(3),
respectively.
In addition, based on the definition of a ``civil monetary
penalty'' in the 1990 Inflation Adjustment Act, agencies are to make
adjustments only to the civil penalties that (i) are for a specific
monetary amount as provided by Federal law or have a maximum amount
provided for by Federal law; (ii) are assessed or enforced by an
agency; and (iii) are enforced or assessed in an administrative
proceeding or a civil action in the Federal courts. Therefore,
penalties that are stated as a percentage of an indeterminate amount or
as a function of a violation (penalties that encompass actual damages
incurred) are not to be adjusted.
On May 19, 2016, SBA published an interim final rule with its
initial adjustments to the civil monetary penalties, including an
initial ``catch-up'' adjustment. 81 FR 31489. These adjusted penalties
became effective on August 1, 2016. SBA published its first annual
adjustments to the monetary penalties in the Federal Register on
February 9, 2017 (82 FR 9967), with an immediate effective date. This
rule will establish the adjusted penalty amounts for 2018.
According to the 2015 Inflation Adjustment Improvements Act and the
Office of Management and Budget implementing guidance in M-18-03,
Implementation of Penalty Inflation Adjustments for 2018, Pursuant to
the Federal Civil Penalties Inflation Adjustment Act Improvements Act
of 2015, (December 15, 2017), the formula for calculating the annual
adjustments is based on the Consumer Price Index for all Urban
Consumers (CPI-U) for the month of October preceding the adjustment,
and specifically on the change between the October CPI-U preceding the
date of adjustment and the prior year's CPI-U. Based on this
methodology, the 2018 civil monetary penalty adjustment is 1.02041
(October 2017 CPI-U (246.663)/October 2016 CPI-U (241.729) = 1.02041).
The annual adjustments identified in this rule were obtained by
applying this multiplier to the most recently adjusted penalty amounts
that were published on February 9, 2017 (82 FR 9967).
II. Civil Money Penalties Adjusted by This Rule
This rule makes adjustments to civil monetary penalties authorized
by the Small Business Act, the Small Business Investment Act of 1958
(SBIAct), the Program Fraud Civil Remedies Act, and the Byrd Amendment
to the Federal Regulation of Lobbying Act. These penalties and the
implementing regulations are discussed below.
1. 13 CFR 107.665--Civil Penalties
SBA licenses, regulates and provides financial assistance to
financial entities called small business investment companies (SBICs).
Pursuant to section 315 of the SBIAct, 15 U.S.C. 687g, SBA may impose a
penalty on any SBIC for each day that it fails to comply with SBA's
regulations or directives governing the filing of regular or special
reports. The penalty for non-compliance is incorporated in Sec.
107.665 of the SBIC program regulations.
This rule amends Sec. 107.665 to adjust the current civil penalty
from $254 to $259 for each day an SBIC fails to file a required report.
The current civil penalty amount of $254 was multiplied by the
multiplier of 1.02041 to reach a product of $259, rounded to the
nearest dollar.
2. 13 CFR 120.465--Civil Penalty for Late Submission of Required
Reports
According to the regulations at Sec. 120.465, any SBA Supervised
Lender, as defined in 13 CFR 120.10, that violates a regulation or
written directive issued by the SBA Administrator regarding the filing
of any regular or special report is subject to the civil penalty amount
stated in Sec. 120.465(b) for each day the company fails to file the
report, unless the SBA Supervised Lender can show that there is
reasonable cause for its failure to file. This penalty is authorized by
section 23(j)(1) of the Small Business Act, 15 U.S.C. 650(j)(1).
This rule amends Sec. 120.465 to adjust the current civil penalty
to $6,460 per day for failure to file. The current civil penalty of
$6,331 was multiplied by the multiplier of 1.02041 to reach a product
of $6,460, rounded to the nearest dollar.
3. 13 CFR 142.1--Overview of Regulations
SBA has promulgated regulations at 13 CFR part 142 to implement the
civil penalties authorized by the Program Fraud Civil Remedies Act of
1986 (PFCRA), 31 U.S.C. 3801-3812. The current electronic Code of
Federal Regulations (eCFR) at Sec. 142.1(b) states that a person who
submits, or causes to be submitted, a false claim or a false statement
to SBA is subject to a civil penalty of not more than $10,781, for each
statement or claim. However, this amount reflected in the eCFR is
incorrect. Rather, the correct adjusted amount for 2017, as published
in the February 9, 2017 rule, was $10,957 (the product of $10,781 and
the multiplier of 1.10636). Therefore, this final rule makes the
required adjustment for 2018 based on the correct published amount of
$10,957. Accordingly, the rule amends Sec. 142.1(b) to adjust the
current civil penalty to $11,181 per statement or claim. The adjusted
civil penalty amount was calculated by multiplying the civil penalty
amount of $10,957 by the multiplier of 1.02041 to reach a product of
$11,181, rounded to the nearest dollar.
4. 13 CFR 146.400--Penalties
SBA's regulations at 13 CFR part 146 govern lobbying activities by
recipients of federal financial assistance. These regulations implement
the authority in 31 U.S.C. 1352, which was established in 1989, and
impose penalties on any recipient that fails to comply with certain
requirements in the part. Specifically, under Sec. 146.400(a) and (b),
penalties may be imposed on those who make prohibited expenditures or
fail to file the required disclosure forms or to amend such forms, if
necessary.
This rule amends Sec. 146.400(a) and (b), to adjust the current
civil penalty amounts to ``not less than $19,639 and not more than
$196,387.'' The current civil penalty amounts of $19,246 and $192,459
were multiplied by the multiplier of 1.02041 to reach a product of
$19,639 and $196,387, respectively, rounded to the nearest dollar.
This rule also amends Sec. 146.400(e) to adjust the civil penalty
that may be imposed for a first time violation of Sec. 146.400(a) and
(b) to a maximum of $19,639 and to adjust the civil penalty that may be
imposed for second and subsequent offenses to ``not less than $19,639
and not more than $196,387.'' The current civil penalty amounts of
$19,246 and $192,459 were multiplied by the multiplier of 1.02041 to
reach a product of $19,639 and $196,387,
[[Page 7363]]
respectively, rounded to the nearest dollar.
III. Justification for Final Rule
The Inflation Adjustment Act provides that agencies shall annually
adjust civil monetary penalties for inflation notwithstanding Section
553 of the APA. Additionally, the Inflation Adjustment Act provides a
nondiscretionary cost-of-living formula for annual adjustment of the
civil monetary penalties. For these reasons, the requirements in
sections 553(b), (c), and (d) of the APA, relating to notice and
comment and requiring that a rule be effective 30 days after
publication in the Federal Register, are inapplicable.
IV. Justification for Immediate Effective Date
Section 553(d) requires agencies to publish their rules at least 30
days before their effective dates, except if the agency finds for good
cause that the delay is impracticable, unnecessary, or contrary to the
public interest. By expressly exempting this rule from section 553, the
2015 Inflation Adjustment Improvements Act has provided SBA with the
good cause justification for this rule to become effective on the date
it is published in the Federal Register.
Compliance With Executive Orders 12866, 12988, 13132, 13771, and the
Paperwork Reduction Act (44 U.S.C. Ch. 35) and the Regulatory
Flexibility Act (5 U.S.C. 601-612)
Executive Order 12866
The Office of Management and Budget has determined that this final
rule is not a significant regulatory action under Executive Order
12866. This is also not a major rule under the Congressional Review
Act, 5 U.S.C. 800.
Executive Order 12988
This action meets applicable standards set forth in Sections 3(a)
and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden. The action does not
have retroactive or preemptive effect.
Executive Order 13132
For the purpose of Executive Order 13132, SBA has determined that
the rule will not have substantial direct effects on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government. Therefore, this final rule has no federalism implications
warranting preparation of a federalism assessment.
Executive Order 13771
This rule is not an Executive Order 13771 regulatory action because
this rule is not significant under Executive Order 12866.
Paperwork Reduction Act
SBA has determined that this rule does not impose additional
reporting or recordkeeping requirements.
Regulatory Flexibility Act (RFA)
The RFA requires agencies to consider the effect of their
regulatory actions on small entities, including small non-profit
businesses, and small local governments. Pursuant to the RFA, when an
agency issues a rule the agency must prepare an analysis that describes
whether the impact of the rule will have a significant economic impact
on a substantial number of such small entities. However, the RFA
requires such analysis only where notice and comment rulemaking is
required. As stated above, SBA has express statutory authority to issue
this rule without regard to the notice and comment requirement of the
Administrative Procedure Act. Since notice and comment is not required
before this rule is issued, SBA is not required to prepare a regulatory
analysis.
List of Subjects
13 CFR Part 107
Investment companies, Loan programs--business, Reporting and
recordkeeping requirements, Small businesses.
13 CFR Part 120
Loan programs--business, Reporting and recordkeeping requirements,
Small businesses.
13 CFR Part 142
Administrative practice and procedure, Claims, Fraud, Penalties.
13 CFR Part 146
Government contracts, Grant programs, Loan programs, Lobbying,
Penalties, Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, SBA amends 13 CFR parts
107, 120, 142, and 146 as follows:
PART 107--SMALL BUSINESS INVESTMENT COMPANIES
0
1. The authority citation for part 107 continues to read as follows:
Authority: 15 U.S.C. 681, 683, 687(c), 687b, 687d, 687g, 687m.
Sec. 107.665 [Amended]
0
2. In Sec. 107.665, remove ``$254'' and add in its place ``$259''.
PART 120--BUSINESS LOANS
0
3. The authority citation for part 120 continues to read as follows:
Authority: 15 U.S.C. 634(b)(6), (b)(7), (b)(14), (h) and note,
636(a), (h) and (m), 650, 687(f), 696(3) and 697(a) and (e); Pub. L.
111-5, 123 Stat. 115; Pub. L. 111-240, 124 Stat. 2504; Pub. L. 114-
38, 129 Stat. 437.
Sec. 120.465 [Amended]
0
4. In Sec. 120.465, amend paragraph (b) by removing ``$6,331'' and
adding in its place ``$6,460''.
PART 142--PROGRAM FRAUD CIVIL REMEDIES ACT REGULATIONS
0
5. The authority citation for part 142 continues to read as follows:
Authority: 15 U.S.C. 634(b); 31 U.S.C. 3803(g)(2).
Sec. 142.1 [Amended]
0
6. In Sec. 142.1, amend paragraph (b) by removing ``$10,781'' and
adding in its place ``$11,181''.
PART 146--NEW RESTRICTIONS ON LOBBYING
0
7. The authority citation for part 146 continues to read as follows:
Authority: Section 319, Pub. L. 101-121 (31 U.S.C. 1352); 15
U.S.C. 634(b)(6).
Sec. 146.400 [Amended]
0
8. In Sec. 146.400, amend paragraphs (a), (b), and (e) by removing
``$19,246'' wherever it appears and adding in its place ``$19,639'' and
by removing ``$192,459'' and adding in its place ``$196,387''.
Dated: February 12, 2018.
Linda E. McMahon,
Administrator.
[FR Doc. 2018-03490 Filed 2-20-18; 8:45 am]
BILLING CODE 8025-01-P