Adjustment of Civil Monetary Penalties for Inflation, 971-974 [2019-00670]
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Federal Register / Vol. 84, No. 22 / Friday, February 1, 2019 / Rules and Regulations
or on the distribution of power and
responsibilities between the Federal
Government and Indian tribes. If you
believe this rule has implications for
federalism or Indian tribes, please
contact the person listed in the FOR
FURTHER INFORMATION CONTACT section
above.
E. Unfunded Mandates Reform Act
The Unfunded Mandates Reform Act
of 1995 (2 U.S.C. 1531–1538) requires
Federal agencies to assess the effects of
their discretionary regulatory actions. In
particular, the Act addresses actions
that may result in the expenditure by a
State, local, or tribal government, in the
aggregate, or by the private sector of
$100,000,000 (adjusted for inflation) or
more in any one year. Though this rule
will not result in such an expenditure,
we do discuss the effects of this rule
elsewhere in this preamble.
F. Environment
We have analyzed this rule under
Department of Homeland Security
Directive 023–01 and Commandant
Instruction M16475.1D, which guide the
Coast Guard in complying with the
National Environmental Policy Act of
1969 (42 U.S.C. 4321–4370f), and have
determined that this action is one of a
category of actions that do not
individually or cumulatively have a
significant effect on the human
environment. This rule involves a safety
zone lasting approximately 30 days that
will prohibit entry within 500 yards of
the vessels being used for sub-surface
containment installation. It is
categorically excluded from further
review under paragraph L(60)a of
Appendix A, Table 1 of DHS Instruction
Manual 023–01–001–01, Rev. 01. A
Record of Environmental Consideration
supporting this determination will be
made available in the docket where
indicated under ADDRESSES.
G. Protest Activities
The Coast Guard respects the First
Amendment rights of protesters.
Protesters are asked to contact the
person listed in the FOR FURTHER
INFORMATION CONTACT section to
coordinate protest activities so that your
message can be received without
jeopardizing the safety or security of
people, places or vessels.
List of Subjects in 33 CFR Part 165
Harbors, Marine safety, Navigation
(water), Reporting and recordkeeping
requirements, Security measures,
Waterways.
For the reasons discussed in the
preamble, the Coast Guard amends 33
CFR part 165 as follows:
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PART 165—REGULATED NAVIGATION
AREAS AND LIMITED ACCESS AREAS
DEPARTMENT OF EDUCATION
1. The authority citation for part 165
continues to read as follows:
[Docket ID ED–2019–OGC–0004]
■
Authority: 46 U.S.C. 70034; 46 U.S.C.
70051; 33 CFR 1.05–1, 6.04–1, 6.04–6, and
160.5; Department of Homeland Security
Delegation No. 0170.1.
2. Add § 165.T08–0030 to read as
follows:
■
§ 165.T08–0030 Safety Zone; Mississippi
Canyon Block 20, South of New Orleans,
LA, Gulf of Mexico.
(a) Location. The following area is a
safety zone: All navigable waters within
a 500-yard radius around the vessels,
OCEAN PATRIOT and ROSS CANDIES,
in Mississippi Canyon Block 20, South
of New Orleans, LA, in the Gulf of
Mexico.
(b) Effective period. This section is
effective from 6 a.m. on February 14,
2019, through 8 p.m. on March 14, 2019.
(c) Regulations. (1) In accordance with
the general regulations in § 165.23, entry
into or remaining within this zone is
prohibited unless authorized by the
Captain of the Port Sector New Orleans
(COTP) or designated representative. A
designated representative is a
commissioned, warrant, or petty officer
of the U.S. Coast Guard assigned to
units under the operational control of
USCG Sector New Orleans.
(2) Vessels requiring entry into this
safety zone must request permission
from the COTP or a designated
representative. They may be contacted
on VHF–FM Channel 16 or 67 or by
telephone at (504) 365–2200.
(3) Persons and vessels permitted to
enter this safety zone must transit at
their slowest safe speed and comply
with all lawful directions issued by the
COTP or the designated representative.
(d) Information broadcasts. The COTP
or a designated representative will
inform the public of the enforcement
times and date for this safety zone
through Broadcast Notices to Mariners
(BNMs), Local Notices to Mariners
(LNMs), and/or Marine Safety
Information Bulletins (MSIBs) as
appropriate.
Dated: January 28, 2019.
K.M. Luttrell,
Captain, U.S. Coast Guard, Captain of the
Port Sector New Orleans.
[FR Doc. 2019–00511 Filed 1–31–19; 8:45 am]
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34 CFR Parts 36 and 668
RIN 1801–AA18
Adjustment of Civil Monetary Penalties
for Inflation
Department of Education.
Final regulations.
AGENCY:
ACTION:
The Department of Education
(Department) issues these final
regulations to adjust the Department’s
civil monetary penalties (CMPs) for
inflation. This adjustment is 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 2019 annual inflation
adjustments being made to the penalty
amounts in the Department’s final
regulations published in the Federal
Register on January 16, 2018 (2018 final
rule).
DATES: These regulations are effective
February 1, 2019. The adjusted CMPs
established by these regulations are
applicable only to civil penalties
assessed after February 1, 2019 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.
Email: levon.schlichter@ed.gov.
If you use a telecommunications
device for the deaf (TDD) or a text
telephone (TTY), 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
SUMMARY:
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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 January 16, 2018
(83 FR 2062), and those adjustments
became effective on the date of
publication.
The 2015 Act (section 701 of Pub. L.
114–74) amended the Inflation
Adjustment Act to improve the
effectiveness of CMPs and to maintain
their deterrent effect.
The 2015 Act requires agencies to: (1)
Adjust the level of CMPs with an initial
‘‘catch-up’’ adjustment through an
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
2018, not seasonally adjusted, we are
annually adjusting each CMP amount by
a multiplier for 2019 of 1.02522, as
directed by the Office of Management
and Budget (OMB) Memorandum No.
M–19–04 issued on December 14, 2018.
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 1.02522
provided in OMB Memorandum No. M–
19–04.
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, section 101(a), October 7, 1998, 112
Stat. 1602), is a fine of up to $25,000 for
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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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 2018 final rule, we increased this
amount to $37,601.
New Regulations: The new penalty for
this section is $38,549.
Reason: Using the multiplier of
1.02522 from OMB Memorandum No.
M–19–04, the new penalty is calculated
as follows: $37,601 × 1.02522 =
$38,549.30, which makes the adjusted
penalty $38,549, when rounded to the
nearest dollar.
Statute: 20 U.S.C. 1022d(a)(3).
Current Regulations: The CMP for 20
U.S.C. 1022d(a)(3) (Section 205(a)(3) of
the HEA), as last set out in statute in
2008 (Pub. L. 110–315, title II, section
201(2), August 14, 2008, 122 Stat. 3147),
is 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
2018 final rule, we increased this
amount to $31,320.
New Regulations: The new penalty for
this section is $32,110.
Reason: Using the multiplier of
1.02522 from OMB Memorandum No.
M–19–04, the new penalty is calculated
as follows: $31,320 × 1.02522 =
$32,109.89, which makes the adjusted
penalty $32,110, when rounded to the
nearest dollar.
Statute: 20 U.S.C. 1082(g).
Current Regulations: The CMP for 20
U.S.C. 1082(g) (Section 432(g) of the
HEA), as last set out in statute in 1986
(Pub. L. 99–498, title IV, section 402(a),
October 17, 1986, 100 Stat. 1401), is 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 2018 final rule, we
increased this amount to $55,907.
New Regulations: The new penalty for
this section is $57,317.
Reason: Using the multiplier of
1.02522 from OMB Memorandum No.
M–19–04, the new penalty is calculated
as follows: $55,907 × 1.02522 =
$57,316.97, which makes the adjusted
penalty $57,317, when rounded to the
nearest dollar.
Statute: 20 U.S.C. 1094(c)(3)(B).
Current Regulations: The CMP for 20
U.S.C. 1094(c)(3)(B) (Section
487(c)(3)(B) of the HEA), as set out in
statute in 1986 (Pub. L. 99–498, title IV,
section 407(a), October 17, 1986, 100
Stat. 1488), is 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 2018 final
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rule, we increased this amount to
$55,907.
New Regulations: The new penalty for
this section is $57,317.
Reason: Using the multiplier of
1.02522 from OMB Memorandum No.
M–19–04, the new penalty is calculated
as follows: $55,907 × 1.02522 =
$57,316.97, which makes the adjusted
penalty $57,317, when rounded to the
nearest dollar.
Statute: 20 U.S.C. 1228c(c)(2)(E).
Current Regulations: The CMP for 20
U.S.C. 1228c(c)(2)(E) (Section 429 of the
General Education Provisions Act), as
set out in statute in 1994 (Pub. L. 103–
382, title II, section 238, October 20,
1994, 108 Stat. 3918), is 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
2018 final rule, we increased this
amount to $1,650.
New Regulations: The new penalty for
this section is $1,692.
Reason: Using the multiplier of
1.02522 from OMB Memorandum No.
M–19–04, the new penalty is calculated
as follows: $1,650 × 1.02522 =
$1,691.61, which makes the adjusted
penalty $1,692, 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 (Pub. L. 101–121,
title III, section 319(a)(1), October 23,
1989, 103 Stat. 750), are 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 2018 final rule, we
increased these amounts to $19,639 to
$196,387.
New Regulations: The new penalties
for these sections are $20,134 to
$201,340.
Reason: Using the multiplier of
1.02522 from OMB Memorandum No.
M–19–04, the new minimum penalty is
calculated as follows: $19,639 × 1.02522
= $20,134.30, which makes the adjusted
penalty $20,134, when rounded to the
nearest dollar. The new maximum
penalty is calculated as follows:
$196,387 × 1.02522 = $201,339.88,
which makes the adjusted penalty
$201,340, when rounded to the nearest
dollar.
Statute: 31 U.S.C. 3802(a)(1) and
(a)(2).
Current Regulations: The CMPs for 31
U.S.C. 3802(a)(1) and (a)(2), as set out in
statute in 1986 (Pub. L. 99–509, title VI,
section 6103(a), Oct. 21, 1986, 100 Stat.
1937), are a fine of up to $5,000 for false
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claims and statements made to the
Government. In the 2018 final rule, we
increased this amount to $11,181.
New Regulations: The new penalty for
this section is $11,463.
Reason: Using the multiplier of
1.02522 from OMB Memorandum No.
M–19–04, the new penalty is calculated
as follows: $11,181 × 1.02522 =
$11,462.98, which makes the adjusted
penalty $11,463, when rounded to the
nearest dollar.
Executive Orders 12866, 13563, and
13771
Regulatory Impact Analysis
Under Executive Order 12866, it must
be determined 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–19–04;
and (3) have an annual impact of less
than $100 million. Therefore, based on
OMB Memorandum No. M–19–04, 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);
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(2) Tailor its regulations to impose the
least burden on society, consistent with
obtaining regulatory objectives and
taking into account, among other things,
and to the extent practicable, the costs
of cumulative regulations;
(3) In choosing among alternative
regulatory approaches, select those
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety,
and other advantages; distributive
impacts; and equity);
(4) To the extent feasible, specify
performance objectives, rather than the
behavior or manner of compliance a
regulated entity must adopt; and
(5) Identify and assess available
alternatives to direct regulation,
including economic incentives—such as
user fees or marketable permits—to
encourage the desired behavior, or
providing information that enables the
public to make choices.
Executive Order 13563 also requires
an agency ‘‘to use the best available
techniques to quantify anticipated
present and future benefits and costs as
accurately as possible.’’ The Office of
Information and Regulatory Affairs of
OMB has emphasized that these
techniques may include ‘‘identifying
changing future compliance costs that
might result from technological
innovation or anticipated behavioral
changes.’’
We are issuing these final regulations
as required by statute and in accordance
with OMB Memorandum No. M–19–04.
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, for
each new regulation that the
Department proposes for notice and
comment or otherwise promulgates that
is a significant regulatory action under
Executive Order 12866 and that imposes
total costs greater than zero, it must
identify two deregulatory actions. For
fiscal year 2019, any new incremental
costs associated with a new regulation
must be fully offset by the elimination
of existing costs through deregulatory
actions. 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
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973
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 2019 penalty amounts
notwithstanding the requirements of 5
U.S.C. 553. 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. You may access the official
edition of the Federal Register and the
Code of Federal Regulations at:
www.govinfo.gov. 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
34 CFR Part 36
Claims, Fraud, Penalties.
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34 CFR Part 668
Administrative practice and
procedure, Colleges and universities,
Consumer protection, Grant programs—
education, Loan programs—education,
Reporting and recordkeeping
requirements, Selective Service System,
Student aid, Vocational education.
Dated: January 29, 2019.
Betsy DeVos,
Secretary of Education.
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.
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
2. Section 36.2 is amended by revising
Table I to read as follows:
■
§ 36.2
*
Penalty adjustment.
*
*
*
*
1. The authority citation for part 36
continues to read as follows:
■
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)).
20
U.S.C.
1022d(a)(3)
(Section
205(a)(3) of the 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.
Provides for a civil penalty, as set by Congress in 1994, of up to $1,000 for
an educational organization’s failure to disclose certain information to
minor students and their parents.
Provides for a civil penalty, as set by Congress in 1989, of $10,000 to
$100,000 for recipients of Government grants, contracts, etc. that improperly lobby Congress or the Executive Branch with respect to the award of
Government grants and contracts.
Provides for a civil penalty, as set by Congress in 1986, of up to $5,000 for
false claims and statements made to the Government.
20 U.S.C. 1082(g) (Section 432(g) of
the HEA).
20 U.S.C. 1094(c)(3)(B)
487(c)(3)(B) of the HEA).
(Section
20 U.S.C. 1228c(c)(2)(E) (Section 429
of the General Education Provisions
Act).
31 U.S.C. 1352(c)(1) and (c)(2)(A) ......
31 U.S.C. 3802(a)(1) and (a)(2) ..........
*
*
*
*
*
PART 668—STUDENT ASSISTANCE
GENERAL PROVISIONS
3. The authority citation for part 668
continues to read as follows:
§ 668.84
[Amended]
4. Section 668.84 is amended in
paragraph (a) by removing the number
‘‘$55,907’’ and adding in its place the
number ‘‘$57,317’’.
■
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$57,317.
$57,317.
$1,692.
$20,134 to $201,340.
$11,463.
FOR FURTHER INFORMATION CONTACT:
39 CFR Part 3035
David A. Trissell, General Counsel, at
202–789–6820.
Amendments to Market Test Rules
Authority: 20 U.S.C. 1001–1003, 1070a,
1070g, 1085, 1087b, 1087d, 1087e, 1088,
1091, 1092, 1094, 1099c, 1099c–1, 1221e–3,
and 3474; Pub. L. 111–256, 124 Stat. 2643;
unless otherwise noted.
$32,110.
POSTAL REGULATORY COMMISSION
[Docket No. RM2018–12; Order No. 4973]
■
$38,549.
Postal Regulatory Commission.
ACTION: Final rule.
AGENCY:
The Commission is adopting
final rules amending the Commission’s
regulations governing market tests of
experimental products. The final rules
revise the method for calculating
applicable market test revenue
limitations and clarify the process for
filing a request to add a nonexperimental product or price category
based on an experimental product to the
market dominant or competitive
product list. For additional information,
Order No. 4973 can be accessed
electronically through the Commission’s
website at https://www.prc.gov.
DATES: Effective: March 4, 2019.
SUMMARY:
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SUPPLEMENTARY INFORMATION:
Table of Contents
I. Relevant Statutory Requirements
II. Basis and Purpose of Rule Change
III. Final Rule
I. Relevant Statutory Requirements
Section 3641 of title 39 of the United
States Code authorizes the Postal
Service to conduct market tests of
experimental products. 39 U.S.C. 3641.
Generally, each product offered by the
Postal Service must comply with section
3622 (governing market dominant
products) or section 3633 (governing
competitive products), as well as section
3642 (governing changes to the lists of
market dominant and competitive
products) and applicable regulations.
Experimental products, however, are
not subject to these requirements. 39
U.S.C. 3641(a)(2).
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01FER1
]]>Agencies
[Federal Register Volume 84, Number 22 (Friday, February 1, 2019)]
[Rules and Regulations]
[Pages 971-974]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-00670]
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DEPARTMENT OF EDUCATION
34 CFR Parts 36 and 668
[Docket ID ED-2019-OGC-0004]
RIN 1801-AA18
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. This adjustment is 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
2019 annual inflation adjustments being made to the penalty amounts in
the Department's final regulations published in the Federal Register on
January 16, 2018 (2018 final rule).
DATES: These regulations are effective February 1, 2019. The adjusted
CMPs established by these regulations are applicable only to civil
penalties assessed after February 1, 2019 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. Email:
levon.schlichter@ed.gov.
If you use a telecommunications device for the deaf (TDD) or a text
telephone (TTY), 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
[[Page 972]]
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 January 16, 2018 (83
FR 2062), and those adjustments became effective on the date of
publication.
The 2015 Act (section 701 of Pub. L. 114-74) amended the Inflation
Adjustment Act to improve the effectiveness of CMPs and to maintain
their deterrent effect.
The 2015 Act requires agencies to: (1) Adjust the level of CMPs
with an initial ``catch-up'' adjustment through an 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 2018, not seasonally adjusted, we are annually adjusting each
CMP amount by a multiplier for 2019 of 1.02522, as directed by the
Office of Management and Budget (OMB) Memorandum No. M-19-04 issued on
December 14, 2018.
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 1.02522 provided in OMB
Memorandum No. M-19-04.
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, section
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 2018 final rule, we increased this amount
to $37,601.
New Regulations: The new penalty for this section is $38,549.
Reason: Using the multiplier of 1.02522 from OMB Memorandum No. M-
19-04, the new penalty is calculated as follows: $37,601 x 1.02522 =
$38,549.30, which makes the adjusted penalty $38,549, when rounded to
the nearest dollar.
Statute: 20 U.S.C. 1022d(a)(3).
Current Regulations: The CMP for 20 U.S.C. 1022d(a)(3) (Section
205(a)(3) of the HEA), as last set out in statute in 2008 (Pub. L. 110-
315, title II, section 201(2), August 14, 2008, 122 Stat. 3147), is 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 2018 final rule, we increased this amount to $31,320.
New Regulations: The new penalty for this section is $32,110.
Reason: Using the multiplier of 1.02522 from OMB Memorandum No. M-
19-04, the new penalty is calculated as follows: $31,320 x 1.02522 =
$32,109.89, which makes the adjusted penalty $32,110, when rounded to
the nearest dollar.
Statute: 20 U.S.C. 1082(g).
Current Regulations: The CMP for 20 U.S.C. 1082(g) (Section 432(g)
of the HEA), as last set out in statute in 1986 (Pub. L. 99-498, title
IV, section 402(a), October 17, 1986, 100 Stat. 1401), is 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 2018 final rule, we increased this amount to $55,907.
New Regulations: The new penalty for this section is $57,317.
Reason: Using the multiplier of 1.02522 from OMB Memorandum No. M-
19-04, the new penalty is calculated as follows: $55,907 x 1.02522 =
$57,316.97, which makes the adjusted penalty $57,317, when rounded to
the nearest dollar.
Statute: 20 U.S.C. 1094(c)(3)(B).
Current Regulations: The CMP for 20 U.S.C. 1094(c)(3)(B) (Section
487(c)(3)(B) of the HEA), as set out in statute in 1986 (Pub. L. 99-
498, title IV, section 407(a), October 17, 1986, 100 Stat. 1488), is 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 2018 final rule, we increased this
amount to $55,907.
New Regulations: The new penalty for this section is $57,317.
Reason: Using the multiplier of 1.02522 from OMB Memorandum No. M-
19-04, the new penalty is calculated as follows: $55,907 x 1.02522 =
$57,316.97, which makes the adjusted penalty $57,317, when rounded to
the nearest dollar.
Statute: 20 U.S.C. 1228c(c)(2)(E).
Current Regulations: The CMP for 20 U.S.C. 1228c(c)(2)(E) (Section
429 of the General Education Provisions Act), as set out in statute in
1994 (Pub. L. 103-382, title II, section 238, October 20, 1994, 108
Stat. 3918), is 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 2018 final rule, we increased this
amount to $1,650.
New Regulations: The new penalty for this section is $1,692.
Reason: Using the multiplier of 1.02522 from OMB Memorandum No. M-
19-04, the new penalty is calculated as follows: $1,650 x 1.02522 =
$1,691.61, which makes the adjusted penalty $1,692, 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 (Pub. L. 101-121, title III,
section 319(a)(1), October 23, 1989, 103 Stat. 750), are 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 2018
final rule, we increased these amounts to $19,639 to $196,387.
New Regulations: The new penalties for these sections are $20,134
to $201,340.
Reason: Using the multiplier of 1.02522 from OMB Memorandum No. M-
19-04, the new minimum penalty is calculated as follows: $19,639 x
1.02522 = $20,134.30, which makes the adjusted penalty $20,134, when
rounded to the nearest dollar. The new maximum penalty is calculated as
follows: $196,387 x 1.02522 = $201,339.88, which makes the adjusted
penalty $201,340, when rounded to the nearest dollar.
Statute: 31 U.S.C. 3802(a)(1) and (a)(2).
Current Regulations: The CMPs for 31 U.S.C. 3802(a)(1) and (a)(2),
as set out in statute in 1986 (Pub. L. 99-509, title VI, section
6103(a), Oct. 21, 1986, 100 Stat. 1937), are a fine of up to $5,000 for
false
[[Page 973]]
claims and statements made to the Government. In the 2018 final rule,
we increased this amount to $11,181.
New Regulations: The new penalty for this section is $11,463.
Reason: Using the multiplier of 1.02522 from OMB Memorandum No. M-
19-04, the new penalty is calculated as follows: $11,181 x 1.02522 =
$11,462.98, which makes the adjusted penalty $11,463, when rounded to
the nearest dollar.
Executive Orders 12866, 13563, and 13771
Regulatory Impact Analysis
Under Executive Order 12866, it must be determined 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-19-04; and (3) have an annual impact of less than $100 million.
Therefore, based on OMB Memorandum No. M-19-04, 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
(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-19-04. 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, for each new regulation that the
Department proposes for notice and comment or otherwise promulgates
that is a significant regulatory action under Executive Order 12866 and
that imposes total costs greater than zero, it must identify two
deregulatory actions. For fiscal year 2019, any new incremental costs
associated with a new regulation must be fully offset by the
elimination of existing costs through deregulatory actions. 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
2019 penalty amounts notwithstanding the requirements of 5 U.S.C. 553.
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. You may
access the official edition of the Federal Register and the Code of
Federal Regulations at: www.govinfo.gov. 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
34 CFR Part 36
Claims, Fraud, Penalties.
[[Page 974]]
34 CFR Part 668
Administrative practice and procedure, Colleges and universities,
Consumer protection, Grant programs--education, Loan programs--
education, Reporting and recordkeeping requirements, Selective Service
System, Student aid, Vocational education.
Dated: January 29, 2019.
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 applicable)
Statute Description penalty amount
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20 U.S.C. 1015(c)(5) (Section Provides for a fine, as set by $38,549.
131(c)(5) of the Higher Education Act Congress in 1998, of up to
of 1965 (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 $32,110.
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, $57,317.
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, $57,317.
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.
20 U.S.C. 1228c(c)(2)(E) (Section 429 Provides for a civil penalty, $1,692.
of the General Education Provisions as set by Congress in 1994,
Act). of up to $1,000 for an
educational organization's
failure to disclose certain
information to minor students
and their parents.
31 U.S.C. 1352(c)(1) and (c)(2)(A).... Provides for a civil penalty, $20,134 to $201,340.
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, $11,463.
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, 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 in paragraph (a) by removing the number
``$55,907'' and adding in its place the number ``$57,317''.
[FR Doc. 2019-00670 Filed 1-31-19; 8:45 am]
BILLING CODE 4000-01-P
