Adjustment of Civil Monetary Penalty Amounts for 2019, 9451-9454 [2019-04898]
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9451
Rules and Regulations
Federal Register
Vol. 84, No. 51
Friday, March 15, 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.
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
24 CFR Parts 28, 30, 87, 180, and 3282
[Docket No. FR–6139–F–01]
RIN 2501–AD90
Adjustment of Civil Monetary Penalty
Amounts for 2019
AGENCY:
Office of the General Counsel,
HUD.
ACTION:
Final rule.
This rule provides for 2019
inflation adjustments of civil monetary
penalty amounts required by the Federal
Civil Penalties Inflation Adjustment Act
of 1990, as amended by the Federal
Civil Penalties Inflation Adjustment Act
Improvements Act of 2015.
DATES: Effective date for 2019 inflation
adjustment: April 15, 2019.
FOR FURTHER INFORMATION CONTACT:
Ariel Pereira, Associate General
Counsel, Office of Legislation and
SUMMARY:
Description
Regulations, Department of Housing and
Urban Development, 451 7th Street SW,
200, Washington, DC 20024; telephone
number 202–402–5138 (this is not a tollfree number). Hearing- or speechimpaired individuals may access this
number via TTY by calling the Federal
Information Relay Service, toll-free, at
800–877–8339.
SUPPLEMENTARY INFORMATION:
I. Background
The Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (the 2015 Act) (Pub. L. 114–74,
Sec. 701), which further amended the
Federal Civil Penalties Inflation
Adjustment Act of 1990 (Pub. L. 101–
410), requires agencies to make annual
adjustments to civil monetary penalty
(CMP) amounts for inflation
‘‘notwithstanding section 553 of title 5,
United States Code.’’ Section 553 refers
to the Administrative Procedure Act,
which provides for advance notice and
public comment on rules. However, as
explained in Section III below, HUD has
determined that advance notice and
public comment on this final rule is
unnecessary. This annual adjustment is
for 2019.
The annual adjustment is based on
the percent change between the U.S.
Department of Labor’s Consumer Price
Index for All Urban Consumers (‘‘CPI–
U’’) for the month of October preceding
the date of the adjustment, and the CPI–
Regulatory
citation
(24 CFR)
Statutory citation
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False Claims ......................
Omnibus Budget Reconciliation Act of
1986 (31 U.S.C. 3802(a)(1)).
False Statements ............... Omnibus Budget Reconciliation Act of
1986 (31 U.S.C. 3802(b)(1)).
Advance Disclosure of
Department of Housing and Urban DeFunding.
velopment Act (42 U.S.C. 3537a(c)).
Disclosure of Subsidy
Department of Housing and Urban DeLayering.
velopment Act (42 U.S.C. 3545(f)).
FHA Mortgagees and
HUD Reform Act of 1989 (12 U.S.C.
Lenders Violations.
1735f–14(a)(2)).
Other FHA Participants
HUD Reform Act of 1989 (12 U.S.C.
Violations.
1735f–14(a)(2)).
Indian Loan Mortgagees
Housing Community Development Act of
Violations.
1992 (12 U.S.C. 1715z–13a(g)(2)).
Multifamily & Section 202
HUD Reform Act of 1989 (12 U.S.C.
or 811 Owners Violations.
1735f–15(c)(2)).
Ginnie Mae Issuers &
HUD Reform Act of 1989 (12 U.S.C.
Custodians Violations.
1723i(b)).
1 Office of Management and Budget, M–19–04,
Memorandum for the Heads of Executive
Departments and Agencies, Implementation of
Penalty Inflation Adjustments for 2019, Pursuant to
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II. This Final Rule
This rule makes the required 2019
inflation adjustment of civil penalty
amounts. Since HUD is not applying
these adjustments retroactively, the
2019 increases apply to violations
occurring on or after this rule’s effective
date. HUD provides a table showing
how, for each component, the penalties
are being adjusted for 2019 pursuant to
the 2015 Act. In the first column
(‘‘Description’’), HUD provides a
description of the penalty. In the second
column (‘‘Statutory Citation’’), HUD
provides the United States Code
statutory citation providing for the
penalty. In the third column
(‘‘Regulatory Citation’’), HUD provides
the Code of Federal Regulations citation
under title 24 for the penalty. In the
fourth column (‘‘Previous Amount’’),
HUD provides the amount of the penalty
pursuant to the rule implementing the
2018 adjustment (83 FR 32790, July 16,
2018). In the fifth column (‘‘2019
Adjusted Amount’’), HUD lists the
penalty after applying the 2019 inflation
adjustment.
Previous amount
2019 adjusted amount
§ 28.10(a)
$11,181 ..............................
$11,463.
§ 28.10(b)
$11,181 ..............................
$11,463.
§ 30.20
$19,639 ..............................
$20,134.
§ 30.25
$19,639 ..............................
$20,134.
§ 30.35
Per Violation: $9,819 .........
Per Year: $1,963,870 ........
Per Violation: $9,819 .........
Per Year: $1,963,870 ........
Per Violation: $9,819 .........
Per Year: $1,963,870 ........
$49,096 ..............................
Per Violation: $10,067
Per Year: $2,013,399.
Per Violation: $10,067
Per Year: $2,013,399.
Per Violation: $10,067
Per Year: $2,013,399.
$50,334.
Per Violation: $9,819 .........
Per Year: $1,963,870 ........
Per Violation: $10,067
Per Year: $2,013,399.
§ 30.36
§ 30.40
§ 30.45
§ 30.50
the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015. (https://
www.whitehouse.gov/wp-content/uploads/2017/11/
PO 00000
U for October of the prior year (28
U.S.C. 2461 note, section (5)(b)(1)).
Based on that formula, the cost-of-living
adjustment multiplier for 2018 is
1.02522.1 Pursuant to the 2015 Act,
adjustments are rounded to the nearest
dollar.2
Sfmt 4700
m_19_04.pdf). (October 2018 CPI–U (252.885)/
October 2017 CPI–U (246.663) = 1.02522.)
2 28 U.S.C. 2461 note.
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Statutory citation
Title I Broker & Dealers
Violations.
Lead Disclosure Violation ..
HUD Reform Act of 1989 (12 U.S.C.
1703).
Title X—Residential Lead-Based Paint
Hazard Reduction Act of 1992 (42
U.S.C. 4852d(b)(1)).
Multifamily Assisted Housing Reform
and Affordability Act of 1997 (42
U.S.C. 1437z–1(b)(2)).
The Lobbying Disclosure Act of 1995 (31
U.S.C. 1352).
Fair Housing Act (42 U.S.C. 3612(g)(3))
Section 8 Owners Violations.
Lobbying Violation .............
Fair Housing Act Civil Penalties.
Manufactured Housing
Regulations Violation.
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Regulatory
citation
(24 CFR)
Description
Housing Community Development Act of
1974 (42 U.S.C. 5410).
III. Justification for Final Rulemaking
for the 2019 Adjustments
HUD generally publishes regulations
for public comment before issuing a rule
for effect, in accordance with its own
regulations on rulemaking in 24 CFR
part 10. However, part 10 provides for
exceptions to the general rule if the
agency finds good cause to omit
advanced notice and public
participation. The good cause
requirement is satisfied when prior
public procedure is ‘‘impractical,
unnecessary, or contrary to the public
interest’’ (see 24 CFR 10.1). As
discussed, this final rule makes the
required 2019 inflation adjustment,
which HUD does not have discretion to
change. Moreover, the 2015 Act
specifies that a delay in the effective
date under the Administrative
Procedure Act is not required for annual
adjustments under the 2015 Act. HUD
has determined, therefore, that it is
unnecessary to delay the effectiveness of
the 2019 inflation adjustments to solicit
public comments.
Section 7(o) of the Department of
Housing and Urban Development Act
(42 U.S.C. 3535(o)) requires that any
HUD regulation implementing any
provision of the Department of Housing
and Urban Development Reform Act of
1989 that authorizes the imposition of a
civil money penalty may not become
effective until after the expiration of a
public comment period of not less than
60 days. This rule does not authorize
the imposition of a civil money
penalty—rather, it makes a standard
inflation adjustment to penalties that
were previously authorized. As noted
above, the 2019 inflation adjustments
are made in accordance with a
statutorily prescribed formula that does
not provide for agency discretion.
Accordingly, a delay in the effectiveness
of the 2019 inflation adjustments in
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§ 30.60
Previous amount
2019 adjusted amount
§ 30.65
Per Violation: $9,819 .........
Per Year: $1,963,870 ........
$17,395 ..............................
Per Violation: $10,067
Per Year: $2,013,399.
$17,834.
§ 30.68
$38,159 ..............................
$39,121.
§ 87.400
Min: $19,639 ......................
Max: $196,387 ...................
No Priors: $20,521 ............
One Prior: $51,302 ............
Two or More Priors:
$102,606.
Per Violation: $2,852 .........
Per Year: $3,565,045 ........
Min: $20,134
Max: $201,340.
No Priors: $21,039
One Prior: $52,596
Two or More Priors:
$105,194.
Per Violation: $2,924
Per Year: $3,654,955.
§ 180.671(a)
§ 3282.10
order to provide the public with an
opportunity to comment is unnecessary
because the 2015 Act exempts the
adjustments from the need for delay, the
rule does not authorize the imposition
of a civil money penalty, and, in any
event, HUD would not have the
discretion to make changes as a result of
any comments.
HUD determined that this rule was
not significant under Executive Order
12866 and Executive Order 13563.
Moreover, as this rule is not a
significant regulatory action under
Executive Order 12866, it is not
considered an Executive Order 13771
regulatory action.
IV. Findings and Certifications
The Regulatory Flexibility Act (RFA)
(5 U.S.C. 601 et seq.) generally requires
an agency to conduct a regulatory
flexibility analysis of any rule subject to
notice and comment rulemaking
requirements, unless the agency certifies
that the rule will not have a significant
economic impact on a substantial
number of small entities. Because HUD
has determined that good cause exists to
issue this rule without prior public
comment, this rule is not subject to the
requirement to publish an initial or final
regulatory flexibility analysis under the
RFA as part of such action.
Regulatory Review—Executive Orders
12866 and 13563
Under Executive Order 12866
(Regulatory Planning and Review), a
determination must be made whether a
regulatory action is significant and,
therefore, subject to review by the Office
of Management and Budget (OMB) in
accordance with the requirements of the
order. Executive Order 13563
(Improving Regulations and Regulatory
Review) directs executive agencies to
analyze regulations that are ‘‘outmoded,
ineffective, insufficient, or excessively
burdensome, and to modify, streamline,
expand, or repeal them in accordance
with what has been learned.’’ Executive
Order 13563 also directs that, where
relevant, feasible, and consistent with
regulatory objectives, and to the extent
permitted by law, agencies are to
identify and consider regulatory
approaches that reduce burdens and
maintain flexibility and freedom of
choice for the public. Executive Order
13771 (Reducing Regulation and
Controlling Regulatory Costs) requires
that for every new regulation issued, at
least two prior regulations be identified
for removal, and that the cost of planned
regulations be prudently managed and
controlled through a budgeting process.
As discussed above in this preamble,
this final rule adjusts existing civil
monetary penalties for inflation by a
statutorily required amount.
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Regulatory Flexibility Act
Unfunded Mandates Reform
Section 202 of the Unfunded
Mandates Reform Act of 1995 (UMRA) 3
requires that an agency prepare a
budgetary impact statement before
promulgating a rule that includes a
Federal mandate that may result in the
expenditure by State, local, and tribal
governments, in the aggregate, or by the
private sector, of $100 million or more
in any one year. If a budgetary impact
statement is required, section 205 of
UMRA also requires an agency to
identity and consider a reasonable
number of regulatory alternatives before
promulgating a rule.4 However, the
UMRA applies only to rules for which
an agency publishes a general notice of
proposed rulemaking. As discussed
32
42
U.S.C. 1532.
U.S.C. 1534.
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above, HUD has determined, for good
cause, that prior notice and public
comment is not required on this rule
and, therefore, the UMRA does not
apply to this final rule.
Executive Order 13132, Federalism
Executive Order 13132 (entitled
‘‘Federalism’’) prohibits an agency from
publishing any rule that has federalism
implications if the rule either imposes
substantial direct compliance costs on
State and local governments and is not
required by statute, or the rule preempts
State law, unless the agency meets the
consultation and funding requirements
of section 6 of the Executive Order. This
rule will not have federalism
implications and would not impose
substantial direct compliance costs on
State and local governments or preempt
State law within the meaning of the
Executive order.
Environmental Review
This final rule does not direct,
provide for assistance or loan and
mortgage insurance for, or otherwise
govern, or regulate, real property
acquisition, disposition, leasing,
rehabilitation, alteration, demolition, or
new construction, or establish, revise, or
provide for standards for construction or
construction materials, manufactured
housing, or occupancy. Accordingly,
under 24 CFR 50.19(c)(1), this final rule
is categorically excluded from
environmental review under the
National Environmental Policy Act of
1969 (42 U.S.C. 4321).
List of Subjects
§ 30.35
Administrative practice and
procedure, Consumer protection,
Intergovernmental relations,
Manufactured homes, Reporting and
recordkeeping requirements.
Accordingly, for the reasons described
in the preamble, HUD amends 24 CFR
parts 28, 30, 87, 180, and 3282 to read
as follows:
*
PART 28—IMPLEMENTATION OF THE
PROGRAM FRAUD CIVIL REMEDIES
ACT OF 1986
§ 30.36 Other participants in FHA
programs.
1. The authority citation for part 28
continues to read as follows:
■
Authority: 28 U.S.C. 2461 note; 31 U.S.C.
3801–3812; 42 U.S.C. 3535(d).
2. In § 28.10, revise the introductory
text of paragraphs (a)(1) and (b)(1) to
read as follows:
■
§ 28.10 Basis for civil penalties and
assessments.
(a) Claims. (1) A civil penalty of not
more than $11,463 may be imposed
upon any person who makes, presents,
or submits, or causes to be made,
presented, or submitted, a claim that the
person knows or has reason to know:
*
*
*
*
*
(b) Statements. (1) A civil penalty of
not more than $11,463 may be imposed
upon any person who makes, presents,
or submits, or causes to be made,
presented, or submitted, a written
statement that:
*
*
*
*
*
PART 30—CIVIL MONEY PENALTIES:
CERTAIN PROHIBITED CONDUCT
24 CFR Part 28
3. The authority citation for part 30
continues to read as follows:
Administrative practice and
procedure, Claims, Fraud, Penalties.
■
24 CFR Part 30
Authority: 12 U.S.C. 1701q–1, 1703, 1723i,
1735f–14, and 1735f–15; 15 U.S.C. 1717a; 28
U.S.C. 1 note and 2461 note; 42 U.S.C.
1437z–1 and 3535(d).
Administrative practice and
procedure, Grant programs-housing and
community development, Loan
programs-housing and community
development, Mortgage insurance,
Penalties.
24 CFR Part 87
Government contracts, Grant
programs, Loan programs, Lobbying,
Penalties, Reporting and recordkeeping
requirements.
24 CFR Part 180
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24 CFR Part 3282
Administrative practice and
procedure, Aged, Civil rights, Fair
housing, Individuals with disabilities,
Investigations, Mortgages, Penalties,
Reporting and recordkeeping
requirements.
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Mortgagees and lenders.
*
*
*
*
(c)(1) Amount of penalty. The
maximum penalty is $10,067 for each
violation, up to a limit of $2,013,399 for
all violations committed during any
one-year period. * * *
*
*
*
*
*
■ 7. In § 30.36, revise the first sentence
in paragraph (c) to read as follows:
*
*
*
*
*
(c) Amount of penalty. The maximum
penalty is $10,067 for each violation, up
to a limit of $2,013,399 for all violations
committed during any one-year period.
* * *
■ 8. In § 30.40, revise the first sentence
in paragraph (c) to read as follows:
§ 30.40 Loan guarantees for Indian
housing.
*
*
*
*
*
(c) Amount of penalty. The maximum
penalty is $10,067 for each violation, up
to a limit of $2,013,399 for all violations
committed during any one-year period.
* * *
■ 9. In § 30.45, revise paragraph (g) to
read as follows:
§ 30.45 Multifamily and section 202 or 811
mortgagors.
*
*
*
*
*
(g) Maximum penalty. The maximum
penalty for each violation under
paragraphs (c) and (f) of this section is
$50,334.
*
*
*
*
*
■ 10. In § 30.50, revise the first sentence
in paragraph (c) to read as follows:
§ 30.50
GNMA issuers and custodians.
4. In § 30.20, revise paragraph (b) to
read as follows:
*
*
*
*
(c) Amount of penalty. The maximum
penalty is $10,067 for each violation, up
to a limit of $2,013,399 during any oneyear period. * * *
■ 11. In § 30.60, revise paragraph (c) to
read as follows:
§ 30.20 Ethical violations by HUD
employees.
§ 30.60 Dealers or sponsored third-party
originators.
*
*
■
*
*
*
*
(b) Maximum penalty. The maximum
penalty is $20,134 for each violation.
■ 5. In § 30.25, revise paragraph (b) to
read as follows:
§ 30.25 Violations by applicants for
assistance.
*
*
*
*
*
(b) Maximum penalty. The maximum
penalty is $20,134 for each violation.
■ 6. In § 30.35, revise the first sentence
in paragraph (c)(1) to read as follows:
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*
*
*
*
*
(c) Amount of penalty. The maximum
penalty is $10,067 for each violation, up
to a limit for any particular person of
$2,013,399 during any one-year period.
■ 12. In § 30.65, revise paragraph (b) to
read as follows:
§ 30.65 Failure to disclose lead-based
paint hazards.
*
*
*
*
*
(b) Amount of penalty. The maximum
penalty is $17,834 for each violation
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13. In § 30.68, revise paragraph (c) to
read as follows:
■
§ 30.68
Section 8 owners.
*
*
*
*
*
(c) Maximum penalty. The maximum
penalty for each violation under this
section is $39,121.
*
*
*
*
*
PART 87—NEW RESTRICTIONS ON
LOBBYING
14. The authority citation for part 87
continues to read as follows:
■
Authority: 28 U.S.C. 1 note; 31 U.S.C.
1352; 42 U.S.C. 3535(d).
15. In § 87.400, revise paragraphs (a),
(b), and (e) to read as follows:
■
§ 87.400
Penalties.
(a) Any person who makes an
expenditure prohibited herein shall be
subject to a civil penalty of not less than
$20,134 and not more than $201,340 for
each such expenditure.
(b) Any person who fails to file or
amend the disclosure form (see
appendix B of this part) to be filed or
amended if required herein, shall be
subject to a civil penalty of not less than
$20,134 and not more than $201,340 for
each such failure.
*
*
*
*
*
(e) First offenders under paragraph (a)
or (b) of this section shall be subject to
a civil penalty of $20,134, absent
aggravating circumstances. Second and
subsequent offenses by persons shall be
subject to an appropriate civil penalty
between $20,134 and $201,340 as
determined by the agency head or his or
her designee.
*
*
*
*
*
PART 180—CONSOLIDATED HUD
HEARING PROCEDURES FOR CIVIL
RIGHTS MATTERS
16. The authority citation for part 180
continues to read as follows:
■
Authority: 28 U.S.C. 1 note; 29 U.S.C. 794;
42 U.S.C. 2000d–1, 3535(d), 3601–3619,
5301–5320, and 6103.
17. In § 180.671, revise paragraphs
(a)(1) through (3) to read as follows:
■
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§ 180.671 Assessing civil penalties for Fair
Housing Act cases.
(a) * * *
(1) $21,039, if the respondent has not
been adjudged in any administrative
hearing or civil action permitted under
the Fair Housing Act or any state or
local fair housing law, or in any
licensing or regulatory proceeding
conducted by a federal, state, or local
governmental agency, to have
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committed any prior discriminatory
housing practice.
(2) $52,596, if the respondent has
been adjudged in any administrative
hearing or civil action permitted under
the Fair Housing Act, or under any state
or local fair housing law, or in any
licensing or regulatory proceeding
conducted by a federal, state, or local
government agency, to have committed
one other discriminatory housing
practice and the adjudication was made
during the 5-year period preceding the
date of filing of the charge.
(3) $105,194, if the respondent has
been adjudged in any administrative
hearings or civil actions permitted
under the Fair Housing Act, or under
any state or local fair housing law, or in
any licensing or regulatory proceeding
conducted by a federal, state, or local
government agency, to have committed
two or more discriminatory housing
practices and the adjudications were
made during the 7-year period
preceding the date of filing of the
charge.
*
*
*
*
*
PART 3282—MANUFACTURED HOME
PROCEDURAL AND ENFORCEMENT
REGULATIONS
18. The authority citation for part
3282 is revised to read as follows:
■
Authority: 28 U.S.C. 1 note; 28 U.S.C.
2461 note; 42 U.S.C. 3535(d) and 5424.
19. Revise § 3282.10 to read as
follows:
■
§ 3282.10
Civil and criminal penalties.
Failure to comply with this part may
subject the party in question to the civil
and criminal penalties provided for in
section 611 of the Act, 42 U.S.C. 5410.
The maximum amount of penalties
imposed under section 611 of the Act
shall be $2,924 for each violation, up to
a maximum of $3,654,955 for any
related series of violations occurring
within one year from the date of the first
violation.
Dated: March 12, 2019.
J. Paul Compton, Jr.,
General Counsel.
[FR Doc. 2019–04898 Filed 3–14–19; 8:45 am]
BILLING CODE 4210–67–P
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PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Parts 4022 and 4044
Allocation of Assets in SingleEmployer Plans; Benefits Payable in
Terminated Single-Employer Plans;
Interest Assumptions for Valuing and
Paying Benefits
Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
AGENCY:
This final rule amends the
Pension Benefit Guaranty Corporation’s
regulations on Benefits Payable in
Terminated Single-Employer Plans and
Allocation of Assets in Single-Employer
Plans to prescribe certain interest
assumptions under the benefit payments
regulation for plans with valuation dates
in April 2019 and interest assumptions
under the asset allocation regulation for
plans with valuation dates in the second
quarter of 2019. These interest
assumptions are used for valuing
benefits and paying certain benefits
under terminating single-employer
plans covered by the pension insurance
system administered by PBGC.
DATES: Effective April 1, 2019.
FOR FURTHER INFORMATION CONTACT:
Melissa Rifkin (rifkin.melissa@
PBGC.gov), Attorney, Regulatory Affairs
Division, Pension Benefit Guaranty
Corporation, 1200 K Street NW,
Washington, DC 20005, 202–326–4400,
ext. 6563. (TTY users may call the
Federal relay service toll free at 1–800–
877–8339 and ask to be connected to
202–326–4400, ext. 6563.)
SUPPLEMENTARY INFORMATION: PBGC’s
regulations on Allocation of Assets in
Single-Employer Plans (29 CFR part
4044) and Benefits Payable in
Terminated Single-Employer Plans (29
CFR part 4022) prescribe actuarial
assumptions—including interest
assumptions—for valuing and paying
plan benefits under terminating singleemployer plans covered by title IV of
the Employee Retirement Income
Security Act of 1974 (ERISA). The
interest assumptions in the regulations
are also published on PBGC’s website
(https://www.pbgc.gov).
SUMMARY:
Lump Sum Interest Assumption
PBGC uses the interest assumptions in
appendix B to part 4022 (‘‘Lump Sum
Interest Rates for PBGC Payments’’) to
determine whether a benefit is payable
as a lump sum and to determine the
amount to pay as a lump sum. Because
some private-sector pension plans use
these interest rates to determine lump
sum amounts payable to plan
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]]>Agencies
[Federal Register Volume 84, Number 51 (Friday, March 15, 2019)]
[Rules and Regulations]
[Pages 9451-9454]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-04898]
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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.
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Federal Register / Vol. 84, No. 51 / Friday, March 15, 2019 / Rules
and Regulations
[[Page 9451]]
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Parts 28, 30, 87, 180, and 3282
[Docket No. FR-6139-F-01]
RIN 2501-AD90
Adjustment of Civil Monetary Penalty Amounts for 2019
AGENCY: Office of the General Counsel, HUD.
ACTION: Final rule.
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SUMMARY: This rule provides for 2019 inflation adjustments of civil
monetary penalty amounts required by the Federal Civil Penalties
Inflation Adjustment Act of 1990, as amended by the Federal Civil
Penalties Inflation Adjustment Act Improvements Act of 2015.
DATES: Effective date for 2019 inflation adjustment: April 15, 2019.
FOR FURTHER INFORMATION CONTACT: Ariel Pereira, Associate General
Counsel, Office of Legislation and Regulations, Department of Housing
and Urban Development, 451 7th Street SW, 200, Washington, DC 20024;
telephone number 202-402-5138 (this is not a toll-free number).
Hearing- or speech-impaired individuals may access this number via TTY
by calling the Federal Information Relay Service, toll-free, at 800-
877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
The Federal Civil Penalties Inflation Adjustment Act Improvements
Act of 2015 (the 2015 Act) (Pub. L. 114-74, Sec. 701), which further
amended the Federal Civil Penalties Inflation Adjustment Act of 1990
(Pub. L. 101-410), requires agencies to make annual adjustments to
civil monetary penalty (CMP) amounts for inflation ``notwithstanding
section 553 of title 5, United States Code.'' Section 553 refers to the
Administrative Procedure Act, which provides for advance notice and
public comment on rules. However, as explained in Section III below,
HUD has determined that advance notice and public comment on this final
rule is unnecessary. This annual adjustment is for 2019.
The annual adjustment is based on the percent change between the
U.S. Department of Labor's Consumer Price Index for All Urban Consumers
(``CPI-U'') for the month of October preceding the date of the
adjustment, and the CPI-U for October of the prior year (28 U.S.C. 2461
note, section (5)(b)(1)). Based on that formula, the cost-of-living
adjustment multiplier for 2018 is 1.02522.\1\ Pursuant to the 2015 Act,
adjustments are rounded to the nearest dollar.\2\
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\1\ Office of Management and Budget, M-19-04, Memorandum for the
Heads of Executive Departments and Agencies, Implementation of
Penalty Inflation Adjustments for 2019, Pursuant to the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015.
(https://www.whitehouse.gov/wp-content/uploads/2017/11/m_19_04.pdf).
(October 2018 CPI-U (252.885)/October 2017 CPI-U (246.663) =
1.02522.)
\2\ 28 U.S.C. 2461 note.
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II. This Final Rule
This rule makes the required 2019 inflation adjustment of civil
penalty amounts. Since HUD is not applying these adjustments
retroactively, the 2019 increases apply to violations occurring on or
after this rule's effective date. HUD provides a table showing how, for
each component, the penalties are being adjusted for 2019 pursuant to
the 2015 Act. In the first column (``Description''), HUD provides a
description of the penalty. In the second column (``Statutory
Citation''), HUD provides the United States Code statutory citation
providing for the penalty. In the third column (``Regulatory
Citation''), HUD provides the Code of Federal Regulations citation
under title 24 for the penalty. In the fourth column (``Previous
Amount''), HUD provides the amount of the penalty pursuant to the rule
implementing the 2018 adjustment (83 FR 32790, July 16, 2018). In the
fifth column (``2019 Adjusted Amount''), HUD lists the penalty after
applying the 2019 inflation adjustment.
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Regulatory 2019 adjusted
Description Statutory citation citation (24 CFR) Previous amount amount
----------------------------------------------------------------------------------------------------------------
False Claims.................... Omnibus Budget Sec. 28.10(a) $11,181........... $11,463.
Reconciliation Act
of 1986 (31 U.S.C.
3802(a)(1)).
False Statements................ Omnibus Budget Sec. 28.10(b) $11,181........... $11,463.
Reconciliation Act
of 1986 (31 U.S.C.
3802(b)(1)).
Advance Disclosure of Funding... Department of Sec. 30.20 $19,639........... $20,134.
Housing and Urban
Development Act
(42 U.S.C.
3537a(c)).
Disclosure of Subsidy Layering.. Department of Sec. 30.25 $19,639........... $20,134.
Housing and Urban
Development Act
(42 U.S.C.
3545(f)).
FHA Mortgagees and Lenders HUD Reform Act of Sec. 30.35 Per Violation: Per Violation:
Violations. 1989 (12 U.S.C. $9,819. $10,067
1735f-14(a)(2)). Per Year: Per Year:
$1,963,870. $2,013,399.
Other FHA Participants HUD Reform Act of Sec. 30.36 Per Violation: Per Violation:
Violations. 1989 (12 U.S.C. $9,819. $10,067
1735f-14(a)(2)). Per Year: Per Year:
$1,963,870. $2,013,399.
Indian Loan Mortgagees Housing Community Sec. 30.40 Per Violation: Per Violation:
Violations. Development Act of $9,819. $10,067
1992 (12 U.S.C. Per Year: Per Year:
1715z-13a(g)(2)). $1,963,870. $2,013,399.
Multifamily & Section 202 or 811 HUD Reform Act of Sec. 30.45 $49,096........... $50,334.
Owners Violations. 1989 (12 U.S.C.
1735f-15(c)(2)).
Ginnie Mae Issuers & Custodians HUD Reform Act of Sec. 30.50 Per Violation: Per Violation:
Violations. 1989 (12 U.S.C. $9,819. $10,067
1723i(b)). Per Year: Per Year:
$1,963,870. $2,013,399.
[[Page 9452]]
Title I Broker & Dealers HUD Reform Act of Sec. 30.60 Per Violation: Per Violation:
Violations. 1989 (12 U.S.C. $9,819. $10,067
1703). Per Year: Per Year:
$1,963,870. $2,013,399.
Lead Disclosure Violation....... Title X-- Sec. 30.65 $17,395........... $17,834.
Residential Lead-
Based Paint Hazard
Reduction Act of
1992 (42 U.S.C.
4852d(b)(1)).
Section 8 Owners Violations..... Multifamily Sec. 30.68 $38,159........... $39,121.
Assisted Housing
Reform and
Affordability Act
of 1997 (42 U.S.C.
1437z-1(b)(2)).
Lobbying Violation.............. The Lobbying Sec. 87.400 Min: $19,639...... Min: $20,134
Disclosure Act of Max: $196,387..... Max: $201,340.
1995 (31 U.S.C.
1352).
Fair Housing Act Civil Penalties Fair Housing Act Sec. 180.671(a) No Priors: $20,521 No Priors: $21,039
(42 U.S.C. One Prior: $51,302 One Prior: $52,596
3612(g)(3)). Two or More Two or More
Priors: $102,606. Priors: $105,194.
Manufactured Housing Regulations Housing Community Sec. 3282.10 Per Violation: Per Violation:
Violation. Development Act of $2,852. $2,924
1974 (42 U.S.C. Per Year: Per Year:
5410). $3,565,045. $3,654,955.
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III. Justification for Final Rulemaking for the 2019 Adjustments
HUD generally publishes regulations for public comment before
issuing a rule for effect, in accordance with its own regulations on
rulemaking in 24 CFR part 10. However, part 10 provides for exceptions
to the general rule if the agency finds good cause to omit advanced
notice and public participation. The good cause requirement is
satisfied when prior public procedure is ``impractical, unnecessary, or
contrary to the public interest'' (see 24 CFR 10.1). As discussed, this
final rule makes the required 2019 inflation adjustment, which HUD does
not have discretion to change. Moreover, the 2015 Act specifies that a
delay in the effective date under the Administrative Procedure Act is
not required for annual adjustments under the 2015 Act. HUD has
determined, therefore, that it is unnecessary to delay the
effectiveness of the 2019 inflation adjustments to solicit public
comments.
Section 7(o) of the Department of Housing and Urban Development Act
(42 U.S.C. 3535(o)) requires that any HUD regulation implementing any
provision of the Department of Housing and Urban Development Reform Act
of 1989 that authorizes the imposition of a civil money penalty may not
become effective until after the expiration of a public comment period
of not less than 60 days. This rule does not authorize the imposition
of a civil money penalty--rather, it makes a standard inflation
adjustment to penalties that were previously authorized. As noted
above, the 2019 inflation adjustments are made in accordance with a
statutorily prescribed formula that does not provide for agency
discretion. Accordingly, a delay in the effectiveness of the 2019
inflation adjustments in order to provide the public with an
opportunity to comment is unnecessary because the 2015 Act exempts the
adjustments from the need for delay, the rule does not authorize the
imposition of a civil money penalty, and, in any event, HUD would not
have the discretion to make changes as a result of any comments.
IV. Findings and Certifications
Regulatory Review--Executive Orders 12866 and 13563
Under Executive Order 12866 (Regulatory Planning and Review), a
determination must be made whether a regulatory action is significant
and, therefore, subject to review by the Office of Management and
Budget (OMB) in accordance with the requirements of the order.
Executive Order 13563 (Improving Regulations and Regulatory Review)
directs executive agencies to analyze regulations that are ``outmoded,
ineffective, insufficient, or excessively burdensome, and to modify,
streamline, expand, or repeal them in accordance with what has been
learned.'' Executive Order 13563 also directs that, where relevant,
feasible, and consistent with regulatory objectives, and to the extent
permitted by law, agencies are to identify and consider regulatory
approaches that reduce burdens and maintain flexibility and freedom of
choice for the public. Executive Order 13771 (Reducing Regulation and
Controlling Regulatory Costs) requires that for every new regulation
issued, at least two prior regulations be identified for removal, and
that the cost of planned regulations be prudently managed and
controlled through a budgeting process. As discussed above in this
preamble, this final rule adjusts existing civil monetary penalties for
inflation by a statutorily required amount.
HUD determined that this rule was not significant under Executive
Order 12866 and Executive Order 13563. Moreover, as this rule is not a
significant regulatory action under Executive Order 12866, it is not
considered an Executive Order 13771 regulatory action.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.)
generally requires an agency to conduct a regulatory flexibility
analysis of any rule subject to notice and comment rulemaking
requirements, unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
Because HUD has determined that good cause exists to issue this rule
without prior public comment, this rule is not subject to the
requirement to publish an initial or final regulatory flexibility
analysis under the RFA as part of such action.
Unfunded Mandates Reform
Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) \3\
requires that an agency prepare a budgetary impact statement before
promulgating a rule that includes a Federal mandate that may result in
the expenditure by State, local, and tribal governments, in the
aggregate, or by the private sector, of $100 million or more in any one
year. If a budgetary impact statement is required, section 205 of UMRA
also requires an agency to identity and consider a reasonable number of
regulatory alternatives before promulgating a rule.\4\ However, the
UMRA applies only to rules for which an agency publishes a general
notice of proposed rulemaking. As discussed
[[Page 9453]]
above, HUD has determined, for good cause, that prior notice and public
comment is not required on this rule and, therefore, the UMRA does not
apply to this final rule.
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\3\ 2 U.S.C. 1532.
\4\ 2 U.S.C. 1534.
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Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits an agency
from publishing any rule that has federalism implications if the rule
either imposes substantial direct compliance costs on State and local
governments and is not required by statute, or the rule preempts State
law, unless the agency meets the consultation and funding requirements
of section 6 of the Executive Order. This rule will not have federalism
implications and would not impose substantial direct compliance costs
on State and local governments or preempt State law within the meaning
of the Executive order.
Environmental Review
This final rule does not direct, provide for assistance or loan and
mortgage insurance for, or otherwise govern, or regulate, real property
acquisition, disposition, leasing, rehabilitation, alteration,
demolition, or new construction, or establish, revise, or provide for
standards for construction or construction materials, manufactured
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this
final rule is categorically excluded from environmental review under
the National Environmental Policy Act of 1969 (42 U.S.C. 4321).
List of Subjects
24 CFR Part 28
Administrative practice and procedure, Claims, Fraud, Penalties.
24 CFR Part 30
Administrative practice and procedure, Grant programs-housing and
community development, Loan programs-housing and community development,
Mortgage insurance, Penalties.
24 CFR Part 87
Government contracts, Grant programs, Loan programs, Lobbying,
Penalties, Reporting and recordkeeping requirements.
24 CFR Part 180
Administrative practice and procedure, Aged, Civil rights, Fair
housing, Individuals with disabilities, Investigations, Mortgages,
Penalties, Reporting and recordkeeping requirements.
24 CFR Part 3282
Administrative practice and procedure, Consumer protection,
Intergovernmental relations, Manufactured homes, Reporting and
recordkeeping requirements.
Accordingly, for the reasons described in the preamble, HUD amends
24 CFR parts 28, 30, 87, 180, and 3282 to read as follows:
PART 28--IMPLEMENTATION OF THE PROGRAM FRAUD CIVIL REMEDIES ACT OF
1986
0
1. The authority citation for part 28 continues to read as follows:
Authority: 28 U.S.C. 2461 note; 31 U.S.C. 3801-3812; 42 U.S.C.
3535(d).
0
2. In Sec. 28.10, revise the introductory text of paragraphs (a)(1)
and (b)(1) to read as follows:
Sec. 28.10 Basis for civil penalties and assessments.
(a) Claims. (1) A civil penalty of not more than $11,463 may be
imposed upon any person who makes, presents, or submits, or causes to
be made, presented, or submitted, a claim that the person knows or has
reason to know:
* * * * *
(b) Statements. (1) A civil penalty of not more than $11,463 may be
imposed upon any person who makes, presents, or submits, or causes to
be made, presented, or submitted, a written statement that:
* * * * *
PART 30--CIVIL MONEY PENALTIES: CERTAIN PROHIBITED CONDUCT
0
3. The authority citation for part 30 continues to read as follows:
Authority: 12 U.S.C. 1701q-1, 1703, 1723i, 1735f-14, and 1735f-
15; 15 U.S.C. 1717a; 28 U.S.C. 1 note and 2461 note; 42 U.S.C.
1437z-1 and 3535(d).
0
4. In Sec. 30.20, revise paragraph (b) to read as follows:
Sec. 30.20 Ethical violations by HUD employees.
* * * * *
(b) Maximum penalty. The maximum penalty is $20,134 for each
violation.
0
5. In Sec. 30.25, revise paragraph (b) to read as follows:
Sec. 30.25 Violations by applicants for assistance.
* * * * *
(b) Maximum penalty. The maximum penalty is $20,134 for each
violation.
0
6. In Sec. 30.35, revise the first sentence in paragraph (c)(1) to
read as follows:
Sec. 30.35 Mortgagees and lenders.
* * * * *
(c)(1) Amount of penalty. The maximum penalty is $10,067 for each
violation, up to a limit of $2,013,399 for all violations committed
during any one-year period. * * *
* * * * *
0
7. In Sec. 30.36, revise the first sentence in paragraph (c) to read
as follows:
Sec. 30.36 Other participants in FHA programs.
* * * * *
(c) Amount of penalty. The maximum penalty is $10,067 for each
violation, up to a limit of $2,013,399 for all violations committed
during any one-year period. * * *
0
8. In Sec. 30.40, revise the first sentence in paragraph (c) to read
as follows:
Sec. 30.40 Loan guarantees for Indian housing.
* * * * *
(c) Amount of penalty. The maximum penalty is $10,067 for each
violation, up to a limit of $2,013,399 for all violations committed
during any one-year period. * * *
0
9. In Sec. 30.45, revise paragraph (g) to read as follows:
Sec. 30.45 Multifamily and section 202 or 811 mortgagors.
* * * * *
(g) Maximum penalty. The maximum penalty for each violation under
paragraphs (c) and (f) of this section is $50,334.
* * * * *
0
10. In Sec. 30.50, revise the first sentence in paragraph (c) to read
as follows:
Sec. 30.50 GNMA issuers and custodians.
* * * * *
(c) Amount of penalty. The maximum penalty is $10,067 for each
violation, up to a limit of $2,013,399 during any one-year period. * *
*
0
11. In Sec. 30.60, revise paragraph (c) to read as follows:
Sec. 30.60 Dealers or sponsored third-party originators.
* * * * *
(c) Amount of penalty. The maximum penalty is $10,067 for each
violation, up to a limit for any particular person of $2,013,399 during
any one-year period.
0
12. In Sec. 30.65, revise paragraph (b) to read as follows:
Sec. 30.65 Failure to disclose lead-based paint hazards.
* * * * *
(b) Amount of penalty. The maximum penalty is $17,834 for each
violation
[[Page 9454]]
0
13. In Sec. 30.68, revise paragraph (c) to read as follows:
Sec. 30.68 Section 8 owners.
* * * * *
(c) Maximum penalty. The maximum penalty for each violation under
this section is $39,121.
* * * * *
PART 87--NEW RESTRICTIONS ON LOBBYING
0
14. The authority citation for part 87 continues to read as follows:
Authority: 28 U.S.C. 1 note; 31 U.S.C. 1352; 42 U.S.C. 3535(d).
0
15. In Sec. 87.400, revise paragraphs (a), (b), and (e) to read as
follows:
Sec. 87.400 Penalties.
(a) Any person who makes an expenditure prohibited herein shall be
subject to a civil penalty of not less than $20,134 and not more than
$201,340 for each such expenditure.
(b) Any person who fails to file or amend the disclosure form (see
appendix B of this part) to be filed or amended if required herein,
shall be subject to a civil penalty of not less than $20,134 and not
more than $201,340 for each such failure.
* * * * *
(e) First offenders under paragraph (a) or (b) of this section
shall be subject to a civil penalty of $20,134, absent aggravating
circumstances. Second and subsequent offenses by persons shall be
subject to an appropriate civil penalty between $20,134 and $201,340 as
determined by the agency head or his or her designee.
* * * * *
PART 180--CONSOLIDATED HUD HEARING PROCEDURES FOR CIVIL RIGHTS
MATTERS
0
16. The authority citation for part 180 continues to read as follows:
Authority: 28 U.S.C. 1 note; 29 U.S.C. 794; 42 U.S.C. 2000d-1,
3535(d), 3601-3619, 5301-5320, and 6103.
0
17. In Sec. 180.671, revise paragraphs (a)(1) through (3) to read as
follows:
Sec. 180.671 Assessing civil penalties for Fair Housing Act cases.
(a) * * *
(1) $21,039, if the respondent has not been adjudged in any
administrative hearing or civil action permitted under the Fair Housing
Act or any state or local fair housing law, or in any licensing or
regulatory proceeding conducted by a federal, state, or local
governmental agency, to have committed any prior discriminatory housing
practice.
(2) $52,596, if the respondent has been adjudged in any
administrative hearing or civil action permitted under the Fair Housing
Act, or under any state or local fair housing law, or in any licensing
or regulatory proceeding conducted by a federal, state, or local
government agency, to have committed one other discriminatory housing
practice and the adjudication was made during the 5-year period
preceding the date of filing of the charge.
(3) $105,194, if the respondent has been adjudged in any
administrative hearings or civil actions permitted under the Fair
Housing Act, or under any state or local fair housing law, or in any
licensing or regulatory proceeding conducted by a federal, state, or
local government agency, to have committed two or more discriminatory
housing practices and the adjudications were made during the 7-year
period preceding the date of filing of the charge.
* * * * *
PART 3282--MANUFACTURED HOME PROCEDURAL AND ENFORCEMENT REGULATIONS
0
18. The authority citation for part 3282 is revised to read as follows:
Authority: 28 U.S.C. 1 note; 28 U.S.C. 2461 note; 42 U.S.C.
3535(d) and 5424.
0
19. Revise Sec. 3282.10 to read as follows:
Sec. 3282.10 Civil and criminal penalties.
Failure to comply with this part may subject the party in question
to the civil and criminal penalties provided for in section 611 of the
Act, 42 U.S.C. 5410. The maximum amount of penalties imposed under
section 611 of the Act shall be $2,924 for each violation, up to a
maximum of $3,654,955 for any related series of violations occurring
within one year from the date of the first violation.
Dated: March 12, 2019.
J. Paul Compton, Jr.,
General Counsel.
[FR Doc. 2019-04898 Filed 3-14-19; 8:45 am]
BILLING CODE 4210-67-P
