2019 Civil Monetary Penalties Inflation Adjustments for Ethics in Government Act Violations, 6053-6055 [2019-03288]

Download as PDF 6053 Rules and Regulations Federal Register Vol. 84, No. 38 Tuesday, February 26, 2019 This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. OFFICE OF GOVERNMENT ETHICS 5 CFR Parts 2634 and 2636 RIN 3209–AA45 2019 Civil Monetary Penalties Inflation Adjustments for Ethics in Government Act Violations Office of Government Ethics. Final rule. AGENCY: ACTION: In accordance with the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, the U.S. Office of Government Ethics is issuing this final rule to make the 2019 annual adjustments to the Ethics in Government Act civil monetary penalties. DATES: Effective Date: This final rule is effective February 26, 2019. Applicability date: This final rule is applicable January 15, 2019. FOR FURTHER INFORMATION CONTACT: Kimberly L. Sikora Panza, Associate Counsel, General Counsel and Legal Policy Division, Office of Government Ethics, Telephone: 202–482–9300; TTY: 800–877–8339; FAX: 202–482–9237. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background In November 2015, Congress passed the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Sec. 701 of Pub. L. 114–74) (the 2015 Act), which further amended the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101– 410). The 2015 Act required Federal agencies to make inflationary adjustments to the civil monetary penalties (CMPs) within their jurisdiction with an initial ‘‘catch-up’’ adjustment through an interim final rule effective no later than August 1, 2016, and further mandates that Federal agencies make subsequent annual inflationary adjustments of their CMPs, to be effective no later than January 15 of each year. VerDate Sep<11>2014 15:57 Feb 25, 2019 Jkt 247001 The Ethics in Government Act of 1978 as amended, 5 U.S.C. appendix (the Ethics Act) provides for five CMPs.1 Specifically, the Ethics Act provides for penalties that can be assessed by an appropriate United States district court, based upon a civil action brought by the Department of Justice, for the following five types of violations: (1) Knowing and willful failure to file, report required information on, or falsification of a public financial disclosure report, 5 U.S.C. appendix 104(a), 5 CFR 2634.701(b); (2) knowing and willful breach of a qualified trust by trustees and interested parties, 5 U.S.C. appendix 102(f)(6)(C)(i), 5 CFR 2634.702(a); (3) negligent breach of a qualified trust by trustees and interested parties, 5 U.S.C. appendix 102(f)(6)(C)(ii), 5 CFR 2634.702(b); (4) misuse of a public report, 5 U.S.C. appendix 105(c)(2), 5 CFR 2634.703; and (5) violation of outside employment/ activities provisions, 5 U.S.C. appendix 504(a), 5 CFR 2636.104(a). In compliance with the 2015 Act and guidance issued by the Office of Management and Budget (OMB), the U.S. Office of Government Ethics (OGE) made previous inflationary adjustments to the five Ethics Act CMPs, and is issuing this rulemaking to effectuate the 2019 annual inflationary adjustments to those CMPs. In accordance with the 2015 Act, these adjustments are based on the percent change between the Consumer Price Index for all Urban Consumers (CPI–U) for the month of October preceding the date of the adjustment, and the prior year’s October CPI–U. Pursuant to OMB guidance, the cost-of-living adjustment multiplier for 2019, based on the CPI–U for October 2018, not seasonally adjusted, is 1.02522. To calculate the 2019 annual adjustment, agencies must multiply the most recent penalty by the 1.02522 multiplier, and round to the nearest dollar. 1 OGE has previously determined, after consultation with the Department of Justice, that the $200 late filing fee for public financial disclosure reports that are more than 30 days overdue (see section 104(d) of the Ethics Act, 5 U.S.C. appendix, 104(d), and 5 CFR 2634.704 of OGE’s regulations thereunder) is not a CMP as defined under the Federal Civil Penalties Inflation Adjustment Act, as amended. Therefore, that fee is not being adjusted in this rulemaking (nor was it adjusted by OGE in previous CMP rulemakings), and will remain at its current amount of $200. PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 Applying the formula established by the 2015 Act and OMB guidance, OGE is amending the Ethics Act CMPs through this rulemaking to: (1) Increase the three penalties reflected in 5 CFR 2634.702(a), 5 CFR 2634.703, and 5 CFR 2636.104(a)— which were previously adjusted to a maximum of $19,639—to a maximum of $20,134; (2) Increase the penalty reflected in 5 CFR 2634.702(b)—which was previously adjusted to a maximum of $9,819—to a maximum of $10,067; and (3) Increase the penalty reflected in 5 CFR 2634.701(b)—which was previously adjusted to a maximum of $59,028—to a maximum of $60,517. These adjusted penalty amounts will apply to penalties assessed after January 15, 2019 (the applicability date of this final rule) whose associated violations occurred after November 2, 2015. OGE will continue to make future annual inflationary adjustments to the Ethics Act CMPs in accordance with the statutory formula set forth in the 2015 Act and OMB guidance. II. Matters of Regulatory Procedure Administrative Procedure Act Pursuant to 5 U.S.C. 553(b), as Director of the Office of Government Ethics, I find that good cause exists for waiving the general notice of proposed rulemaking and public comment procedures as to these technical amendments. The notice and comment procedures are being waived because these amendments, which concern matters of agency organization, procedure and practice, are being adopted in accordance with statutorily mandated inflation adjustment procedures of the 2015 Act, which specifies that agencies shall adjust civil monetary penalties notwithstanding Section 553 of the Administrative Procedure Act. It is also in the public interest that the adjusted rates for civil monetary penalties under the Ethics in Government Act become effective as soon as possible in order to maintain their deterrent effect. Regulatory Flexibility Act As the Director of the Office of Government Ethics, I certify under the Regulatory Flexibility Act (5 U.S.C. chapter 6) that this final rule would not have a significant economic impact on a substantial number of small entities E:\FR\FM\26FER1.SGM 26FER1 6054 Federal Register / Vol. 84, No. 38 / Tuesday, February 26, 2019 / Rules and Regulations Dated: February 21, 2019. Emory Rounds, Director, U.S. Office of Government Ethics. because it primarily affects current Federal executive branch employees. Paperwork Reduction Act The Paperwork Reduction Act (44 U.S.C. chapter 35) does not apply because this regulation does not contain information collection requirements that require approval of the Office of Management and Budget. Unfunded Mandates Reform Act For purposes of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. chapter 5, subchapter II), this rule would not significantly or uniquely affect small governments and will not result in increased expenditures by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more (as adjusted for inflation) in any one year. Executive Order 13563 and Executive Order 12866 Executive Orders 13563 and 12866 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select the regulatory approaches that maximize net benefits (including economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. The Office of Management and Budget has determined that rulemakings such as this implementing annual inflationary adjustments under the 2015 Act are not significant regulatory actions under Executive Order 12866. For the reasons set forth in the preamble, the U.S. Office of Government Ethics is amending 5 CFR parts 2634 and 2636 as follows: PART 2634—EXECUTIVE BRANCH FINANCIAL DISCLOSURE, QUALIFIED TRUSTS, AND CERTIFICATES OF DIVESTITURE List of Subjects 5 CFR Part 2634 Certificates of divestiture, Conflict of interests, Financial disclosure, Government employees, Penalties, Privacy, Reporting and recordkeeping requirements, Trusts and trustees. 5 CFR Part 2636 Conflict of interests, Government employees, Penalties. VerDate Sep<11>2014 15:57 Feb 25, 2019 Jkt 247001 TABLE 1 TO § 2634.702 1. The authority citation for part 2634 continues to read as follows: ■ Authority: 5 U.S.C. App.; 26 U.S.C. 1043; Pub. L. 101–410, 104 Stat. 890, 28 U.S.C. 2461 note, as amended by Sec. 31001, Pub. L. 104–134, 110 Stat. 1321 and Sec. 701, Pub. L. 114–74; E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., p. 215, as modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p. 306. 2. Section 2634.701 is amended by revising paragraph (b) to read as follows: ■ § 2634.701 reports. Failure to file or falsifying * * * * * (b) Civil action. The Attorney General may bring a civil action in any appropriate United States district court against any individual who knowingly and willfully falsifies or who knowingly and willfully fails to file or report any information required by filers of public reports under subpart B of this part. The court in which the action is brought may assess against the individual a civil monetary penalty in any amount, not to exceed the amounts set forth in Table 1 to this section, as provided by section 104(a) of the Act, as amended, and as adjusted in accordance with the inflation adjustment procedures prescribed in the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended. Executive Order 12988 As Director of the Office of Government Ethics, I have reviewed this rule in light of section 3 of Executive Order 12988, Civil Justice Reform, and certify that it meets the applicable standards provided therein. which the action is brought may assess against the individual a civil monetary penalty in any amount, not to exceed the amounts set forth in Table 1 to this section, as provided by section 102(f)(6)(C)(i) of the Act and as adjusted in accordance with the inflation adjustment procedures prescribed in the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended. TABLE 1 TO § 2634.701 Date of violation Date of violation Violation occurring between Sept. 29, 1999 and Nov. 2, 2015 ....... Violation occurring after Nov. 2, 2015 .......................................... Penalty $11,000 20,134 (b) The Attorney General may bring a civil action in any appropriate United States district court against any individual who negligently violates the provisions of § 2634.408(d)(1) or (e)(1). The court in which the action is brought may assess against the individual a civil monetary penalty in any amount, not to exceed the amounts set forth in Table 2 to this section, as provided by section 102(f)(6)(C)(ii) of the Act and as adjusted in accordance with the inflation adjustment procedures of the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended. TABLE 2 TO § 2634.702 Date of violation Penalty Violation occurring between Sept. 29, 1999 and Nov. 2, 2015 ....... Violation occurring after Nov. 2, 2015 .......................................... $5,500 10,067 4. Section 2634.703 is revised to read as follows: ■ § 2634.703 Misuse of public reports. Penalty (a) The Attorney General may bring a civil action against any person who Violation occurring between Sept. obtains or uses a report filed under this 14, 2007 and Nov. 2, 2015 ....... $50,000 part for any purpose prohibited by Violation occurring after Nov. 2, 2015 .......................................... 60,517 section 105(c)(1) of the Act, as incorporated in § 2634.603(f). The court * * * * * in which the action is brought may assess against the person a civil ■ 3. Section 2634.702 is revised to read monetary penalty in any amount, not to as follows: exceed the amounts set forth in Table 1 § 2634.702 Breaches by trust fiduciaries to this section, as provided by section and interested parties. 105(c)(2) of the Act and as adjusted in (a) The Attorney General may bring a accordance with the inflation civil action in any appropriate United adjustment procedures prescribed in the States district court against any individual who knowingly and willfully Federal Civil Penalties Inflation Adjustment Act of 1990, as amended. violates the provisions of § 2634.408(d)(1) or (e)(1). The court in PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\26FER1.SGM 26FER1 Federal Register / Vol. 84, No. 38 / Tuesday, February 26, 2019 / Rules and Regulations TABLE 1 TO § 2634.703 Date of violation NUCLEAR REGULATORY COMMISSION Penalty 10 CFR Part 72 Violation occurring between Sept. 29, 1999 and Nov. 2, 2015 ....... Violation occurring after Nov. 2, 2015 .......................................... $11,000 20,134 (b) This remedy shall be in addition to any other remedy available under statutory or common law. PART 2636—LIMITATIONS ON OUTSIDE EARNED INCOME, EMPLOYMENT AND AFFILIATIONS FOR CERTAIN NONCAREER EMPLOYEES [NRC–2019–0030] RIN 3150–AK28 List of Approved Spent Fuel Storage Casks: Holtec International HI–STORM 100 Cask System, Certificate of Compliance No. 1014, Amendment No. 13 Nuclear Regulatory Commission. ACTION: Direct final rule. AGENCY: The U.S. Nuclear Regulatory Commission (NRC) is amending its ■ 5. The authority citation for part 2636 spent fuel storage regulations by continues to read as follows: revising the Holtec International HI– STORM 100 Cask System listing within Authority: 5 U.S.C. App. (Ethics in the ‘‘List of approved spent fuel storage Government Act of 1978); Pub. L. 101–410, 104 Stat. 890, 28 U.S.C. 2461 note (Federal casks’’ to include Amendment No. 13 to Civil Penalties Inflation Adjustment Act of Certificate of Compliance No. 1014. 1990), as amended by Sec. 31001, Pub. L. Amendment No. 13 revises Appendix B 104–134, 110 Stat. 1321 (Debt Collection of the technical specifications to update Improvement Act of 1996) and Sec. 701, Pub. the initial uranium weight for the L. 114–74 (Federal Civil Penalties Inflation 16x16B and 16x16C assembly classes to Adjustment Act Improvements Act of 2015); E.O. 12674, 54 FR 15159, 3 CFR, 1989 Comp., match the value for 16x16A. DATES: This direct final rule is effective p. 215, as modified by E.O. 12731, 55 FR 42547, 3 CFR, 1990 Comp., p. 306. May 13, 2019, unless significant adverse comments are received by March 28, ■ 6. Section 2636.104 is amended by 2019. If this direct final rule is revising paragraph (a) to read as follows: withdrawn as a result of such comments, timely notice of the § 2636.104 Civil, disciplinary and other withdrawal will be published in the action. Federal Register. Comments received (a) Civil action. Except when the after this date will be considered if it is employee engages in conduct in good practical to do so, but the NRC is able faith reliance upon an advisory opinion to ensure consideration only for issued under § 2636.103, an employee comments received on or before this who engages in any conduct in violation date. Comments received on this direct of the prohibitions, limitations and final rule will also be considered to be restrictions contained in this part may comments on a companion proposed be subject to civil action under 5 U.S.C. rule published in the Proposed Rules app. 504(a) and a civil monetary penalty section of this issue of the Federal of not more than the amounts set in Register. Table 1 to this section, as adjusted in ADDRESSES: You may submit comments accordance with the inflation adjustment procedures prescribed in the by any of the following methods: • Federal Rulemaking website: Go to Federal Civil Penalties Inflation https://www.regulations.gov and search Adjustment Act of 1990, as amended, or for Docket ID NRC–2019–0030. Address the amount of the compensation the questions about NRC dockets to Carol individual received for the prohibited Gallagher; telephone: 301–415–3463; conduct, whichever is greater. email: Carol.Gallagher@nrc.gov. For technical questions contact the TABLE 1 TO § 2636.104 individuals listed in the FOR FURTHER INFORMATION CONTACT section of this Date of violation Penalty document. • Email comments to: Violation occurring between Sept. 29, 1999 and Nov. 2, 2015 ....... $11,000 Rulemaking.Comments@nrc.gov. If you Violation occurring after Nov. 2, do not receive an automatic email reply 2015 .......................................... 20,134 confirming receipt, then contact us at 301–415–1677. * * * * * • Fax comments to: Secretary, U.S. [FR Doc. 2019–03288 Filed 2–25–19; 8:45 am] Nuclear Regulatory Commission at 301– BILLING CODE 6345–03–P 415–1101. VerDate Sep<11>2014 15:57 Feb 25, 2019 Jkt 247001 SUMMARY: PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 6055 • Mail comments to: Secretary, U.S. Nuclear Regulatory Commission, Washington, DC 20555–0001, ATTN: Rulemakings and Adjudications Staff. • Hand deliver comments to: 11555 Rockville Pike, Rockville, Maryland 20852, between 7:30 a.m. and 4:15 p.m. (Eastern Time) Federal workdays; telephone: 301–415–1677. For additional direction on obtaining information and submitting comments, see ‘‘Obtaining Information and Submitting Comments’’ in the SUPPLEMENTARY INFORMATION section of this document. FOR FURTHER INFORMATION CONTACT: Christian Jacobs, Office of Nuclear Material Safety and Safeguards; telephone: 301–415–6825; email: Christian.Jacobs@nrc.gov or Gregory R. Trussell, Office of Nuclear Material Safety and Safeguards; telephone: 301– 415–6244; email: Gregory.Trussell@ nrc.gov. Both are staff of the U.S. Nuclear Regulatory Commission, Washington, DC 20555–0001. SUPPLEMENTARY INFORMATION: Table of Contents I. Obtaining Information and Submitting Comments II. Rulemaking Procedure III. Background IV. Discussion of Changes V. Voluntary Consensus Standards VI. Agreement State Compatibility VII. Plain Writing VIII. Environmental Assessment and Finding of No Significant Environmental Impact IX. Paperwork Reduction Act Statement X. Regulatory Flexibility Certification XI. Regulatory Analysis XII. Backfitting and Issue Finality XIII. Congressional Review Act XIV. Availability of Documents I. Obtaining Information and Submitting Comments A. Obtaining Information Please refer to Docket ID NRC–2019– 0030 when contacting the NRC about the availability of information for this action. You may obtain publiclyavailable information related to this action by any of the following methods: • Federal Rulemaking website: Go to https://www.regulations.gov and search for Docket ID NRC–2019–0030. • NRC’s Agencywide Documents Access and Management System (ADAMS): You may obtain publiclyavailable documents online in the ADAMS Public Documents collection at https://www.nrc.gov/reading-rm/ adams.html. To begin the search, select ‘‘Begin Web-based ADAMS Search.’’ For problems with ADAMS, please contact the NRC’s Public Document Room (PDR) reference staff at 1–800–397–4209, 301– E:\FR\FM\26FER1.SGM 26FER1

Agencies

Office of Government Ethics

[Federal Register Volume 84, Number 38 (Tuesday, February 26, 2019)]
[Rules and Regulations]
[Pages 6053-6055]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03288]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

========================================================================


Federal Register / Vol. 84, No. 38 / Tuesday, February 26, 2019 / 
Rules and Regulations

[[Page 6053]]



OFFICE OF GOVERNMENT ETHICS

5 CFR Parts 2634 and 2636

RIN 3209-AA45


2019 Civil Monetary Penalties Inflation Adjustments for Ethics in 
Government Act Violations

AGENCY: Office of Government Ethics.

ACTION: Final rule.

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

SUMMARY: In accordance with the Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015, the U.S. Office of Government 
Ethics is issuing this final rule to make the 2019 annual adjustments 
to the Ethics in Government Act civil monetary penalties.

DATES: 
    Effective Date: This final rule is effective February 26, 2019.
    Applicability date: This final rule is applicable January 15, 2019.

FOR FURTHER INFORMATION CONTACT: Kimberly L. Sikora Panza, Associate 
Counsel, General Counsel and Legal Policy Division, Office of 
Government Ethics, Telephone: 202-482-9300; TTY: 800-877-8339; FAX: 
202-482-9237.

SUPPLEMENTARY INFORMATION: 

I. Background

    In November 2015, Congress passed the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015 (Sec. 701 of Pub. L. 
114-74) (the 2015 Act), which further amended the Federal Civil 
Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410). The 2015 
Act required Federal agencies to make inflationary adjustments to the 
civil monetary penalties (CMPs) within their jurisdiction with an 
initial ``catch-up'' adjustment through an interim final rule effective 
no later than August 1, 2016, and further mandates that Federal 
agencies make subsequent annual inflationary adjustments of their CMPs, 
to be effective no later than January 15 of each year.
    The Ethics in Government Act of 1978 as amended, 5 U.S.C. appendix 
(the Ethics Act) provides for five CMPs.\1\ Specifically, the Ethics 
Act provides for penalties that can be assessed by an appropriate 
United States district court, based upon a civil action brought by the 
Department of Justice, for the following five types of violations:
---------------------------------------------------------------------------

    \1\ OGE has previously determined, after consultation with the 
Department of Justice, that the $200 late filing fee for public 
financial disclosure reports that are more than 30 days overdue (see 
section 104(d) of the Ethics Act, 5 U.S.C. appendix, 104(d), and 5 
CFR 2634.704 of OGE's regulations thereunder) is not a CMP as 
defined under the Federal Civil Penalties Inflation Adjustment Act, 
as amended. Therefore, that fee is not being adjusted in this 
rulemaking (nor was it adjusted by OGE in previous CMP rulemakings), 
and will remain at its current amount of $200.
---------------------------------------------------------------------------

    (1) Knowing and willful failure to file, report required 
information on, or falsification of a public financial disclosure 
report, 5 U.S.C. appendix 104(a), 5 CFR 2634.701(b);
    (2) knowing and willful breach of a qualified trust by trustees and 
interested parties, 5 U.S.C. appendix 102(f)(6)(C)(i), 5 CFR 
2634.702(a);
    (3) negligent breach of a qualified trust by trustees and 
interested parties, 5 U.S.C. appendix 102(f)(6)(C)(ii), 5 CFR 
2634.702(b);
    (4) misuse of a public report, 5 U.S.C. appendix 105(c)(2), 5 CFR 
2634.703; and
    (5) violation of outside employment/activities provisions, 5 U.S.C. 
appendix 504(a), 5 CFR 2636.104(a).
    In compliance with the 2015 Act and guidance issued by the Office 
of Management and Budget (OMB), the U.S. Office of Government Ethics 
(OGE) made previous inflationary adjustments to the five Ethics Act 
CMPs, and is issuing this rulemaking to effectuate the 2019 annual 
inflationary adjustments to those CMPs. In accordance with the 2015 
Act, these adjustments are based on the percent change between the 
Consumer Price Index for all Urban Consumers (CPI-U) for the month of 
October preceding the date of the adjustment, and the prior year's 
October CPI-U. Pursuant to OMB guidance, the cost-of-living adjustment 
multiplier for 2019, based on the CPI-U for October 2018, not 
seasonally adjusted, is 1.02522. To calculate the 2019 annual 
adjustment, agencies must multiply the most recent penalty by the 
1.02522 multiplier, and round to the nearest dollar.
    Applying the formula established by the 2015 Act and OMB guidance, 
OGE is amending the Ethics Act CMPs through this rulemaking to:
    (1) Increase the three penalties reflected in 5 CFR 2634.702(a), 5 
CFR 2634.703, and 5 CFR 2636.104(a)--which were previously adjusted to 
a maximum of $19,639--to a maximum of $20,134;
    (2) Increase the penalty reflected in 5 CFR 2634.702(b)--which was 
previously adjusted to a maximum of $9,819--to a maximum of $10,067; 
and
    (3) Increase the penalty reflected in 5 CFR 2634.701(b)--which was 
previously adjusted to a maximum of $59,028--to a maximum of $60,517.
    These adjusted penalty amounts will apply to penalties assessed 
after January 15, 2019 (the applicability date of this final rule) 
whose associated violations occurred after November 2, 2015.
    OGE will continue to make future annual inflationary adjustments to 
the Ethics Act CMPs in accordance with the statutory formula set forth 
in the 2015 Act and OMB guidance.

II. Matters of Regulatory Procedure

Administrative Procedure Act

    Pursuant to 5 U.S.C. 553(b), as Director of the Office of 
Government Ethics, I find that good cause exists for waiving the 
general notice of proposed rulemaking and public comment procedures as 
to these technical amendments. The notice and comment procedures are 
being waived because these amendments, which concern matters of agency 
organization, procedure and practice, are being adopted in accordance 
with statutorily mandated inflation adjustment procedures of the 2015 
Act, which specifies that agencies shall adjust civil monetary 
penalties notwithstanding Section 553 of the Administrative Procedure 
Act. It is also in the public interest that the adjusted rates for 
civil monetary penalties under the Ethics in Government Act become 
effective as soon as possible in order to maintain their deterrent 
effect.

Regulatory Flexibility Act

    As the Director of the Office of Government Ethics, I certify under 
the Regulatory Flexibility Act (5 U.S.C. chapter 6) that this final 
rule would not have a significant economic impact on a substantial 
number of small entities

[[Page 6054]]

because it primarily affects current Federal executive branch 
employees.

Paperwork Reduction Act

    The Paperwork Reduction Act (44 U.S.C. chapter 35) does not apply 
because this regulation does not contain information collection 
requirements that require approval of the Office of Management and 
Budget.

Unfunded Mandates Reform Act

    For purposes of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
chapter 5, subchapter II), this rule would not significantly or 
uniquely affect small governments and will not result in increased 
expenditures by State, local, and tribal governments, in the aggregate, 
or by the private sector, of $100 million or more (as adjusted for 
inflation) in any one year.

Executive Order 13563 and Executive Order 12866

    Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select the regulatory approaches that 
maximize net benefits (including economic, environmental, public health 
and safety effects, distributive impacts, and equity). Executive Order 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
The Office of Management and Budget has determined that rulemakings 
such as this implementing annual inflationary adjustments under the 
2015 Act are not significant regulatory actions under Executive Order 
12866.

Executive Order 12988

    As Director of the Office of Government Ethics, I have reviewed 
this rule in light of section 3 of Executive Order 12988, Civil Justice 
Reform, and certify that it meets the applicable standards provided 
therein.

List of Subjects

5 CFR Part 2634

    Certificates of divestiture, Conflict of interests, Financial 
disclosure, Government employees, Penalties, Privacy, Reporting and 
recordkeeping requirements, Trusts and trustees.

5 CFR Part 2636

    Conflict of interests, Government employees, Penalties.

    Dated: February 21, 2019.
Emory Rounds,
Director, U.S. Office of Government Ethics.

    For the reasons set forth in the preamble, the U.S. Office of 
Government Ethics is amending 5 CFR parts 2634 and 2636 as follows:

PART 2634--EXECUTIVE BRANCH FINANCIAL DISCLOSURE, QUALIFIED TRUSTS, 
AND CERTIFICATES OF DIVESTITURE

0
1. The authority citation for part 2634 continues to read as follows:

    Authority: 5 U.S.C. App.; 26 U.S.C. 1043; Pub. L. 101-410, 104 
Stat. 890, 28 U.S.C. 2461 note, as amended by Sec. 31001, Pub. L. 
104-134, 110 Stat. 1321 and Sec. 701, Pub. L. 114-74; E.O. 12674, 54 
FR 15159, 3 CFR, 1989 Comp., p. 215, as modified by E.O. 12731, 55 
FR 42547, 3 CFR, 1990 Comp., p. 306.


0
2. Section 2634.701 is amended by revising paragraph (b) to read as 
follows:


Sec.  2634.701  Failure to file or falsifying reports.

* * * * *
    (b) Civil action. The Attorney General may bring a civil action in 
any appropriate United States district court against any individual who 
knowingly and willfully falsifies or who knowingly and willfully fails 
to file or report any information required by filers of public reports 
under subpart B of this part. The court in which the action is brought 
may assess against the individual a civil monetary penalty in any 
amount, not to exceed the amounts set forth in Table 1 to this section, 
as provided by section 104(a) of the Act, as amended, and as adjusted 
in accordance with the inflation adjustment procedures prescribed in 
the Federal Civil Penalties Inflation Adjustment Act of 1990, as 
amended.

                       Table 1 to Sec.   2634.701
------------------------------------------------------------------------
                      Date of violation                         Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 14, 2007 and Nov. 2, 2015..    $50,000
Violation occurring after Nov. 2, 2015.......................     60,517
------------------------------------------------------------------------

* * * * *

0
3. Section 2634.702 is revised to read as follows:


Sec.  2634.702  Breaches by trust fiduciaries and interested parties.

    (a) The Attorney General may bring a civil action in any 
appropriate United States district court against any individual who 
knowingly and willfully violates the provisions of Sec.  2634.408(d)(1) 
or (e)(1). The court in which the action is brought may assess against 
the individual a civil monetary penalty in any amount, not to exceed 
the amounts set forth in Table 1 to this section, as provided by 
section 102(f)(6)(C)(i) of the Act and as adjusted in accordance with 
the inflation adjustment procedures prescribed in the Federal Civil 
Penalties Inflation Adjustment Act of 1990, as amended.

                       Table 1 to Sec.   2634.702
------------------------------------------------------------------------
                      Date of violation                         Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015..    $11,000
Violation occurring after Nov. 2, 2015.......................     20,134
------------------------------------------------------------------------

    (b) The Attorney General may bring a civil action in any 
appropriate United States district court against any individual who 
negligently violates the provisions of Sec.  2634.408(d)(1) or (e)(1). 
The court in which the action is brought may assess against the 
individual a civil monetary penalty in any amount, not to exceed the 
amounts set forth in Table 2 to this section, as provided by section 
102(f)(6)(C)(ii) of the Act and as adjusted in accordance with the 
inflation adjustment procedures of the Federal Civil Penalties 
Inflation Adjustment Act of 1990, as amended.

                       Table 2 to Sec.   2634.702
------------------------------------------------------------------------
                      Date of violation                         Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015..     $5,500
Violation occurring after Nov. 2, 2015.......................     10,067
------------------------------------------------------------------------


0
4. Section 2634.703 is revised to read as follows:


Sec.  2634.703  Misuse of public reports.

    (a) The Attorney General may bring a civil action against any 
person who obtains or uses a report filed under this part for any 
purpose prohibited by section 105(c)(1) of the Act, as incorporated in 
Sec.  2634.603(f). The court in which the action is brought may assess 
against the person a civil monetary penalty in any amount, not to 
exceed the amounts set forth in Table 1 to this section, as provided by 
section 105(c)(2) of the Act and as adjusted in accordance with the 
inflation adjustment procedures prescribed in the Federal Civil 
Penalties Inflation Adjustment Act of 1990, as amended.

[[Page 6055]]



                       Table 1 to Sec.   2634.703
------------------------------------------------------------------------
                      Date of violation                         Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015..    $11,000
Violation occurring after Nov. 2, 2015.......................     20,134
------------------------------------------------------------------------

    (b) This remedy shall be in addition to any other remedy available 
under statutory or common law.

PART 2636--LIMITATIONS ON OUTSIDE EARNED INCOME, EMPLOYMENT AND 
AFFILIATIONS FOR CERTAIN NONCAREER EMPLOYEES

0
5. The authority citation for part 2636 continues to read as follows:

    Authority: 5 U.S.C. App. (Ethics in Government Act of 1978); 
Pub. L. 101-410, 104 Stat. 890, 28 U.S.C. 2461 note (Federal Civil 
Penalties Inflation Adjustment Act of 1990), as amended by Sec. 
31001, Pub. L. 104-134, 110 Stat. 1321 (Debt Collection Improvement 
Act of 1996) and Sec. 701, Pub. L. 114-74 (Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015); E.O. 12674, 54 
FR 15159, 3 CFR, 1989 Comp., p. 215, as modified by E.O. 12731, 55 
FR 42547, 3 CFR, 1990 Comp., p. 306.


0
6. Section 2636.104 is amended by revising paragraph (a) to read as 
follows:


Sec.  2636.104   Civil, disciplinary and other action.

    (a) Civil action. Except when the employee engages in conduct in 
good faith reliance upon an advisory opinion issued under Sec.  
2636.103, an employee who engages in any conduct in violation of the 
prohibitions, limitations and restrictions contained in this part may 
be subject to civil action under 5 U.S.C. app. 504(a) and a civil 
monetary penalty of not more than the amounts set in Table 1 to this 
section, as adjusted in accordance with the inflation adjustment 
procedures prescribed in the Federal Civil Penalties Inflation 
Adjustment Act of 1990, as amended, or the amount of the compensation 
the individual received for the prohibited conduct, whichever is 
greater.

                       Table 1 to Sec.   2636.104
------------------------------------------------------------------------
                      Date of violation                         Penalty
------------------------------------------------------------------------
Violation occurring between Sept. 29, 1999 and Nov. 2, 2015..    $11,000
Violation occurring after Nov. 2, 2015.......................     20,134
------------------------------------------------------------------------

* * * * *
[FR Doc. 2019-03288 Filed 2-25-19; 8:45 am]
 BILLING CODE 6345-03-P

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