Department of State 2019 Civil Monetary Penalties Inflationary Adjustment, 9957-9959 [2019-05158]

Download as PDF Federal Register / Vol. 84, No. 53 / Tuesday, March 19, 2019 / Rules and Regulations § 91.1603 Special Federal Aviation Regulation No. 112—Prohibition Against Certain Flights in the Tripoli Flight Information Region (FIR) (HLLL). (a) Applicability. This Special Federal Aviation Regulation (SFAR) applies to the following persons: (1) All U.S. air carriers and U.S. commercial operators; (2) All persons exercising the privileges of an airman certificate issued by the FAA, except when such persons are operating U.S.-registered aircraft for a foreign air carrier; and (3) All operators of U.S.-registered civil aircraft, except where the operator of such aircraft is a foreign air carrier. (b) Flight prohibition. Except as provided in paragraphs (c) and (d) of this section, no person described in paragraph (a) of this section may conduct flight operations in the Tripoli Flight Information Region (FIR) (HLLL). (c) Permitted operations. This section does not prohibit persons described in paragraph (a) of this section from conducting flight operations in the Tripoli Flight Information Region (FIR) (HLLL) under the following circumstances: (1) Overflights of the Tripoli FIR (HLLL) may be conducted at altitudes at or above FL300, subject to the approval of, and in accordance with the conditions established by, the appropriate authorities of Libya. (2) Flight operations in the Tripoli FIR (HLLL) at altitudes below FL300 are permitted if they are conducted under a contract, grant, or cooperative agreement with a department, agency, or instrumentality of the U.S. Government (or under a subcontract between the prime contractor of the department, agency, or instrumentality and the person described in paragraph (a) of this section) with the approval of the FAA, or under an exemption issued by the FAA. The FAA will consider requests for approval or exemption in a timely manner, with the order of preference being: First, for those operations in support of U.S. Government-sponsored activities; second, for those operations in support of government-sponsored activities of a foreign country with the support of a U.S. Government department, agency, or instrumentality; and third, for all other operations. (d) Emergency situations. In an emergency that requires immediate decision and action for the safety of the flight, the pilot in command of an aircraft may deviate from this section to the extent required by that emergency. Except for U.S. air carriers and commercial operators that are subject to the requirements of 14 CFR part 119, 121, 125, or 135, each person who VerDate Sep<11>2014 16:02 Mar 18, 2019 Jkt 247001 deviates from this section must, within 10 days of the deviation, excluding Saturdays, Sundays, and Federal holidays, submit to the responsible Flight Standards Office a complete report of the operations of the aircraft involved in the deviation, including a description of the deviation and the reasons for it. (e) Expiration. This Special Federal Aviation Regulation (SFAR) will remain in effect until March 20, 2021. The FAA may amend, rescind, or extend this SFAR, as necessary. 9957 Department of State 2019 Civil Monetary Penalties Inflationary Adjustment and required agencies to make adjustments at least once every four years thereafter. The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Section 701 of Public Law 114–74 (the 2015 Act) further amended the 1990 Act by requiring agencies to adjust CMPs, if necessary, pursuant to a ‘‘catch-up’’ adjustment methodology prescribed by the 2015 Act, which mandated that the catch-up adjustment take effect no later than August 1, 2016. Additionally, the 2015 Act required agencies to make annual adjustments to their respective CMPs in accordance with guidance issued by the Office of Management and Budget (OMB). Based on these statutes, the Department of State (the Department) published a final rule in June 2016 to implement the ‘‘catch-up’’ provisions; and annual updates to its CMPs in January 2017 and January 2018. On December 14, 2018, OMB notified agencies that the annual cost-of-living adjustment multiplier for 2019, based on the Consumer Price Index, is 1.02522. Additional information may be found in OMB Memorandum M–19–04, at: https://www.whitehouse.gov/wpcontent/uploads/2017/11/m_19_04.pdf. This final rule amends Department CMPs for fiscal year 2019. Department of State. ACTION: Final rule. Overview of the Areas Affected by This Rule Issued in Washington, DC, under the authority of 49 U.S.C. 106(f) and (g), 40101(d)(1), 40105(b)(1)(A), and 44701(a)(5), on March 12, 019. Daniel K. Elwell, Acting Administrator. [FR Doc. 2019–04896 Filed 3–18–19; 8:45 am] BILLING CODE 4910–13–P DEPARTMENT OF STATE 22 CFR Parts 35, 103, 127, and 138 [Public Notice 10692] RIN 1400–AE75 AGENCY: This final rule is issued to adjust the civil monetary penalties (CMP) for regulatory provisions maintained and enforced by the Department of State. The revised CMP adjusts the amount of civil monetary penalties assessed by the Department of State based on the December 2018 guidance from the Office of Management and Budget. The new amounts will apply only to those penalties assessed on or after the effective date of this rule, regardless of the date on which the underlying facts or violations occurred. DATES: This final rule is effective on March 19, 2019. FOR FURTHER INFORMATION CONTACT: Alice Kottmyer, Attorney-Adviser, Office of Management, kottmyeram@ state.gov. ATTN: Regulatory Change, CMP Adjustments, (202) 647–2318. SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Inflation Adjustment Act of 1990, Public Law 101–410, as amended by the Debt Collection Improvement Act of 1996, Public Law 104–134, required the head of each agency to adjust its CMPs for inflation no later than October 23, 1996 SUMMARY: PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 Within the Department of State (title 22, Code of Federal Regulations), this rule affects four areas: (1) Part 35, which implements the Program Fraud Civil Remedies Act of 1986 (PFCRA), codified at 31 U.S.C. 3801–3812; (2) Part 103, which implements the Chemical Weapons Convention Implementation Act of 1998 (CWC Act); (3) Part 127, which implements the penalty provisions of sections 38(e), 39A(c), and 40(k) of the Arms Export Control Act (AECA) (22 U.S.C. 2778(e), 2779a(c), 2780(k)); and (4) Part 138, which implements Section 319 of Public Law 101–121, codified at 31 U.S.C. 1352, and prohibits recipients of Federal contracts, grants, and loans from using appropriated funds for lobbying the Executive or Legislative Branches of the Federal government in connection with a specific contract. Specific Changes to 22 CFR Made by This Rule I. Part 35 The PFRCA, enacted in 1986, authorizes agencies, with approval from the Department of Justice, to pursue E:\FR\FM\19MRR1.SGM 19MRR1 9958 Federal Register / Vol. 84, No. 53 / Tuesday, March 19, 2019 / Rules and Regulations individuals or firms for false claims. Applying the 2019 multiplier (1.02522), the new maximum liabilities are as follows: $11,463, up to a maximum of $343,903. II. Part 103 The CWC Act provided domestic implementation of the Convention on the Prohibition of the Development, Production, Stockpiling, and Use of Chemical Weapons and on Their Destruction. The penalty provisions of the CWC Act are codified at 22 U.S.C. 6761. Applying the 2019 multiplier (1.02522), the new maximum amounts are as follows: Prohibited acts related to inspections, $38,549; for Recordkeeping violations, $7,710. III. Part 127 The Assistant Secretary of State for Political-Military Affairs is responsible for the imposition of CMPs under the International Traffic in Arms Regulations (ITAR), which is administered by the Directorate of Defense Trade Controls (DDTC). (1) AECA section 38(e): Applying the 2019 multiplier (1.02522), the new maximum penalty under 22 U.S.C. 2778 (22 CFR 127.10(a)(1)(i)) is $1,163,217. (2) AECA section 39A(c): Applying the multiplier, the new maximum penalty under 22 U.S.C. 2779a (22 CFR 127.10(a)(1)(ii)) is $845,764, or five times the amount of the prohibited payment, whichever is greater. (3) AECA section 40(k): Applying the multiplier, the new maximum penalty under 22 U.S.C. 2780 (22 CFR 127.10(a)(1)(iii)) is $1,006,699. IV. Part 138 Section 319 of Public Law 101–121, codified at 31 U.S.C. 1352, provides penalties for recipients of Federal contracts, grants, and loans who use appropriated funds to lobby the Executive or Legislative Branches of the Federal government in connection with a specific contract, grant, or loan. Any person who violates that prohibition is subject to a civil penalty. The statute also requires each person who requests or receives a Federal contract, grant, cooperative agreement, loan, or a Federal commitment to insure or guarantee a loan, to disclose any lobbying; there is a penalty for failure to disclose. The maximum penalties for both improper expenditures and failure to disclose, is: For first offenders, $19,809; for others, not less than $20,134, and not more than $201,340. Summary Citation in 22 CFR 2018 Amount of penalty New amount of penalty § 35.3 .................................................................. § 103.6 Prohibited Acts ...................................... § 103.6 Recordkeeping Violations ...................... § 127.10(a)(1)(i) .................................................. § 127.10(a)(1)(ii) ................................................. $11,181 up to $335,443 ................................... $37,601 ............................................................ $7,520 .............................................................. $1,134,602 ....................................................... $824,959 or 5 times the amount of the prohibited payment, whichever is greater. $981,935 .......................................................... $19,322 ............................................................ $19,639 up to $196,387 ................................... $11,463 up to $343,903. $38,549. $7,710. $1,163,217. $845,764 or 5 times the amount of the prohibited payment, whichever is greater. $1,006,699. $19,809. $20,134 up to $201,340. § 127.10(a)(1)(iii) ................................................ § 138.400 First Offenders ................................... § 138.400 ............................................................ 2019 multiplier: 1.02522. Effective Date of Penalties Regulatory Analysis and Notices The revised CMP amounts will go into effect on the date this rule is published. All violations for which CMPs are assessed on or after the effective date of this rule, regardless of whether the violation occurred before the effective date, will be assessed at the adjusted penalty level. Administrative Procedure Act Future Adjustments and Reporting The 2015 Act directed agencies to undertake an annual review of CMPs using a formula prescribed by the statute. Annual adjustments to CMPs are made in accordance with the guidance issued by OMB. As in this rulemaking, the Department of State will publish notification of annual inflation adjustments to CMPs in the Federal Register no later than January 15 of each year, with the adjusted amount taking effect immediately upon publication. (This publication was delayed due to the lapse in appropriations in January 2019.) VerDate Sep<11>2014 16:02 Mar 18, 2019 Jkt 247001 The Department of State is publishing this rule using the ‘‘good cause’’ exception to the Administrative Procedure Act (5 U.S.C. 553(b)), as the Department has determined that public comment on this rulemaking would be impractical, unnecessary, or contrary to the public interest. This rulemaking is mandatory and entirely without agency discretion; it implements Public Law 114–74. See 5 U.S.C. 553(d)(3). Regulatory Flexibility Act Because this rulemaking is exempt from 5 U.S.C. 553, a Regulatory Flexibility Analysis is not required. Unfunded Mandates Reform Act of 1995 This rule does not involve a mandate that will 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 year and it will not significantly or uniquely affect small governments. Therefore, no actions were deemed necessary under the provisions of the Unfunded Mandates Reform Act of 1995. PO 00000 Frm 00022 Fmt 4700 Sfmt 4700 Small Business Regulatory Enforcement Fairness Act of 1996 This rule is not a major rule within the meaning of the Small Business Regulatory Enforcement Fairness Act of 1996. Executive Orders 12372 and 13132 This amendment will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. Therefore, in accordance with Executive Order 13132, it is determined that this amendment does not have sufficient federalism implications to require consultations or warrant the preparation of a federalism summary impact statement. Executive Orders 12866, 13563, and 13771 The Department believes that benefits of the rulemaking outweigh any costs, and there are no feasible alternatives to this rulemaking. It is the Department’s position that this rulemaking is not an economically significant rule under the criteria of Executive Order 12866, and is E:\FR\FM\19MRR1.SGM 19MRR1 Federal Register / Vol. 84, No. 53 / Tuesday, March 19, 2019 / Rules and Regulations consistent with the provisions of Executive Order 13563. This rule is not an E.O. 13771 regulatory action because this rule is not significant under E.O. 12866. Executive Order 12988 The Department of State has reviewed the proposed amendment in light of Executive Order 12988 to eliminate ambiguity, minimize litigation, establish clear legal standards, and reduce burden. Executive Order 13175 The Department of State has determined that this rulemaking will not have tribal implications, will not impose substantial direct compliance costs on Indian tribal governments, and will not preempt tribal law. Accordingly, Executive Order 13175 does not apply to this rulemaking. Paperwork Reduction Act This rulemaking does not impose or revise any information collections subject to 44 U.S.C. chapter 35. List of Subjects 22 CFR Part 35 Administrative practice and procedure, Claims, Fraud, Penalties. 22 CFR Part 127 Arms and munitions, Exports. 22 CFR Part 138 Government contracts, Grant programs, Loan programs, Lobbying, Penalties, Reporting and recordkeeping requirements. For the reasons set forth above, 22 CFR parts 35, 103, 127, and 138 are amended as follows: 1. The authority citation for part 35 continues to read as follows: ■ Authority: 22 U.S.C. 2651a; 31 U.S.C. 3801 et seq.; Pub. L. 114–74, 129 Stat. 584. [Amended] 2. In § 35.3: a. Remove ‘‘$11,181’’ and add in its place ‘‘$11,463’’, wherever it occurs. ■ b. In paragraph (f), remove ‘‘$335,443’’ and add in its place ‘‘$343,903’’. VerDate Sep<11>2014 16:02 Mar 18, 2019 Jkt 247001 Authority: 22 U.S.C. 2651a; 22 U.S.C. 6701 et seq.; Pub. L. 114–74, 129 Stat. 584. § 103.6 [Amended] DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [TD 9851] RIN 1545–BN55 Guidance Under Section 851 Relating to Investments in Stock and Securities Internal Revenue Service (IRS), Treasury. ACTION: Final regulations. AGENCY: This document provides final regulations relating to the income test used to determine whether a corporation may qualify as a regulated investment company (RIC) for Federal income tax purposes. These final regulations provide guidance to corporations that intend to qualify as RICs. SUMMARY: 4. Amend § 103.6 by removing ‘‘$37,601’’ and adding in its place ‘‘$38,549’’ in paragraph (a)(1) and removing ‘‘$7,520’’ and adding in its place ‘‘$7,710’’ in paragraph (a)(2). ■ PART 127—VIOLATIONS AND PENALTIES ■ DATES: Authority: Sections 2, 38, and 42, Pub. L. 90–629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 2791); 22 U.S.C. 401; 22 U.S.C. 2651a; 22 U.S.C. 2779a; 22 U.S.C. 2780; E.O. 13637, 78 FR 16129; Pub. L. 114–74, 129 Stat. 584. Effective date: These regulations are effective on March 19, 2019. Applicability date: For the date of applicability, see § 1.851–2(d). FOR FURTHER INFORMATION CONTACT: Matthew Howard at (202) 317–7053 (not a toll-free number). SUPPLEMENTARY INFORMATION: 5. The authority citation for part 127 continues to read as follows: [Amended] 6. Section 127.10 is amended as follows: ■ a. In paragraph (a)(1)(i), remove ‘‘$1,134,602’’ and add in its place ‘‘$1,163,217’’; ■ b. In paragraph (a)(1)(ii), remove ‘‘$824,959’’ and add in its place ‘‘$845,764’’; and ■ c. In paragraph (a)(1)(iii), remove ‘‘$981,935’’ and add in its place ‘‘$1,006,699’’. ■ PART 138—RESTRICTIONS ON LOBBYING 7. The authority citation for part 138 continues to read as follows: ■ Authority: 22 U.S.C. 2651a; 31 U.S.C. 1352; Pub. L. 114–74, 129 Stat. 584. § 138.400 [Amended] 8. In § 138.400: a. Remove ‘‘$19,639’’ and ‘‘$196,387’’ and add in their place ‘‘$20,134’’ and ‘‘$201,340’’, respectively, wherever they occur. ■ b. In paragraph (e), remove ‘‘$19,322’’ and add in its place ‘‘$19,809’’. ■ ■ PART 35—PROGRAM FRAUD CIVIL REMEDIES ■ ■ 3. The authority citation for part 103 continues to read as follows: ■ § 127.10 22 CFR Part 103 Administrative practice and procedure, Chemicals, Classified information, Foreign relations, Freedom of information, International organization, Investigations, Penalties, Reporting and recordkeeping requirements. § 35.3 PART 103—REGULATIONS FOR IMPLEMENTATION OF THE CHEMICAL WEAPONS CONVENTION AND THE CHEMICAL WEAPONS CONVENTION IMPLEMENTATION ACT OF 1998 ON THE TAKING OF SAMPLES AND ON ENFORCEMENT OF REQUIREMENTS CONCERNING RECORDKEEPING AND INSPECTIONS 9959 Dated: February 27, 2019. Alicia Frechette, Executive Director, Office of the Legal Adviser and Bureau of Legislative Affairs, Department of State. [FR Doc. 2019–05158 Filed 3–18–19; 8:45 am] BILLING CODE 4710–10–P PO 00000 Frm 00023 Fmt 4700 Sfmt 4700 Background This document contains amendments to the Income Tax Regulations (26 CFR part 1) relating to RICs. Section 851 of the Internal Revenue Code (Code) sets forth requirements for qualifying as a RIC. On September 28, 2016, a notice of proposed rulemaking (REG–123600–16) was published in the Federal Register (81 FR 66576) under section 851. No public hearing was requested or held. Written or electronic comments responding to the notice of proposed rulemaking were received. After consideration of all the comments, the proposed regulations are adopted as revised by this Treasury decision containing final regulations. The revisions to the proposed regulations are discussed in the Summary of Comments and Explanation of Revisions. Summary of Comments and Explanation of Revisions In response to the notice of proposed rulemaking, the IRS received five written comments that are available for public inspection at www.regulations.gov or upon request. A. Revisions Due to Statutory Changes The notice of proposed rulemaking proposed revisions to § 1.851–2(b)(1), E:\FR\FM\19MRR1.SGM 19MRR1

Agencies

DEPARTMENT OF STATE

[Federal Register Volume 84, Number 53 (Tuesday, March 19, 2019)]
[Rules and Regulations]
[Pages 9957-9959]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-05158]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF STATE

22 CFR Parts 35, 103, 127, and 138

[Public Notice 10692]
RIN 1400-AE75


Department of State 2019 Civil Monetary Penalties Inflationary 
Adjustment

AGENCY: Department of State.

ACTION: Final rule.

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

SUMMARY: This final rule is issued to adjust the civil monetary 
penalties (CMP) for regulatory provisions maintained and enforced by 
the Department of State. The revised CMP adjusts the amount of civil 
monetary penalties assessed by the Department of State based on the 
December 2018 guidance from the Office of Management and Budget. The 
new amounts will apply only to those penalties assessed on or after the 
effective date of this rule, regardless of the date on which the 
underlying facts or violations occurred.

DATES: This final rule is effective on March 19, 2019.

FOR FURTHER INFORMATION CONTACT: Alice Kottmyer, Attorney-Adviser, 
Office of Management, kottmyeram@state.gov. ATTN: Regulatory Change, 
CMP Adjustments, (202) 647-2318.

SUPPLEMENTARY INFORMATION: The Federal Civil Penalties Inflation 
Adjustment Act of 1990, Public Law 101-410, as amended by the Debt 
Collection Improvement Act of 1996, Public Law 104-134, required the 
head of each agency to adjust its CMPs for inflation no later than 
October 23, 1996 and required agencies to make adjustments at least 
once every four years thereafter. The Federal Civil Penalties Inflation 
Adjustment Act Improvements Act of 2015, Section 701 of Public Law 114-
74 (the 2015 Act) further amended the 1990 Act by requiring agencies to 
adjust CMPs, if necessary, pursuant to a ``catch-up'' adjustment 
methodology prescribed by the 2015 Act, which mandated that the catch-
up adjustment take effect no later than August 1, 2016. Additionally, 
the 2015 Act required agencies to make annual adjustments to their 
respective CMPs in accordance with guidance issued by the Office of 
Management and Budget (OMB).
    Based on these statutes, the Department of State (the Department) 
published a final rule in June 2016 to implement the ``catch-up'' 
provisions; and annual updates to its CMPs in January 2017 and January 
2018.
    On December 14, 2018, OMB notified agencies that the annual cost-
of-living adjustment multiplier for 2019, based on the Consumer Price 
Index, is 1.02522. Additional information may be found in OMB 
Memorandum M-19-04, at: https://www.whitehouse.gov/wp-content/uploads/2017/11/m_19_04.pdf. This final rule amends Department CMPs for fiscal 
year 2019.

Overview of the Areas Affected by This Rule

    Within the Department of State (title 22, Code of Federal 
Regulations), this rule affects four areas:
    (1) Part 35, which implements the Program Fraud Civil Remedies Act 
of 1986 (PFCRA), codified at 31 U.S.C. 3801-3812;
    (2) Part 103, which implements the Chemical Weapons Convention 
Implementation Act of 1998 (CWC Act);
    (3) Part 127, which implements the penalty provisions of sections 
38(e), 39A(c), and 40(k) of the Arms Export Control Act (AECA) (22 
U.S.C. 2778(e), 2779a(c), 2780(k)); and
    (4) Part 138, which implements Section 319 of Public Law 101-121, 
codified at 31 U.S.C. 1352, and prohibits recipients of Federal 
contracts, grants, and loans from using appropriated funds for lobbying 
the Executive or Legislative Branches of the Federal government in 
connection with a specific contract.

Specific Changes to 22 CFR Made by This Rule

I. Part 35

    The PFRCA, enacted in 1986, authorizes agencies, with approval from 
the Department of Justice, to pursue

[[Page 9958]]

individuals or firms for false claims. Applying the 2019 multiplier 
(1.02522), the new maximum liabilities are as follows: $11,463, up to a 
maximum of $343,903.

II. Part 103

    The CWC Act provided domestic implementation of the Convention on 
the Prohibition of the Development, Production, Stockpiling, and Use of 
Chemical Weapons and on Their Destruction. The penalty provisions of 
the CWC Act are codified at 22 U.S.C. 6761. Applying the 2019 
multiplier (1.02522), the new maximum amounts are as follows: 
Prohibited acts related to inspections, $38,549; for Recordkeeping 
violations, $7,710.

III. Part 127

    The Assistant Secretary of State for Political-Military Affairs is 
responsible for the imposition of CMPs under the International Traffic 
in Arms Regulations (ITAR), which is administered by the Directorate of 
Defense Trade Controls (DDTC).
    (1) AECA section 38(e):
    Applying the 2019 multiplier (1.02522), the new maximum penalty 
under 22 U.S.C. 2778 (22 CFR 127.10(a)(1)(i)) is $1,163,217.
    (2) AECA section 39A(c):
    Applying the multiplier, the new maximum penalty under 22 U.S.C. 
2779a (22 CFR 127.10(a)(1)(ii)) is $845,764, or five times the amount 
of the prohibited payment, whichever is greater.
    (3) AECA section 40(k):
    Applying the multiplier, the new maximum penalty under 22 U.S.C. 
2780 (22 CFR 127.10(a)(1)(iii)) is $1,006,699.

IV. Part 138

    Section 319 of Public Law 101-121, codified at 31 U.S.C. 1352, 
provides penalties for recipients of Federal contracts, grants, and 
loans who use appropriated funds to lobby the Executive or Legislative 
Branches of the Federal government in connection with a specific 
contract, grant, or loan. Any person who violates that prohibition is 
subject to a civil penalty. The statute also requires each person who 
requests or receives a Federal contract, grant, cooperative agreement, 
loan, or a Federal commitment to insure or guarantee a loan, to 
disclose any lobbying; there is a penalty for failure to disclose.
    The maximum penalties for both improper expenditures and failure to 
disclose, is: For first offenders, $19,809; for others, not less than 
$20,134, and not more than $201,340.

Summary

------------------------------------------------------------------------
                                 2018 Amount of         New amount of
     Citation in 22 CFR              penalty               penalty
------------------------------------------------------------------------
Sec.   35.3.................  $11,181 up to         $11,463 up to
                               $335,443.             $343,903.
Sec.   103.6 Prohibited Acts  $37,601.............  $38,549.
Sec.   103.6 Recordkeeping    $7,520..............  $7,710.
 Violations.
Sec.   127.10(a)(1)(i)......  $1,134,602..........  $1,163,217.
Sec.   127.10(a)(1)(ii).....  $824,959 or 5 times   $845,764 or 5 times
                               the amount of the     the amount of the
                               prohibited payment,   prohibited payment,
                               whichever is          whichever is
                               greater.              greater.
Sec.   127.10(a)(1)(iii)....  $981,935............  $1,006,699.
Sec.   138.400 First          $19,322.............  $19,809.
 Offenders.
Sec.   138.400..............  $19,639 up to         $20,134 up to
                               $196,387.             $201,340.
------------------------------------------------------------------------
2019 multiplier: 1.02522.

Effective Date of Penalties

    The revised CMP amounts will go into effect on the date this rule 
is published. All violations for which CMPs are assessed on or after 
the effective date of this rule, regardless of whether the violation 
occurred before the effective date, will be assessed at the adjusted 
penalty level.

Future Adjustments and Reporting

    The 2015 Act directed agencies to undertake an annual review of 
CMPs using a formula prescribed by the statute. Annual adjustments to 
CMPs are made in accordance with the guidance issued by OMB. As in this 
rulemaking, the Department of State will publish notification of annual 
inflation adjustments to CMPs in the Federal Register no later than 
January 15 of each year, with the adjusted amount taking effect 
immediately upon publication. (This publication was delayed due to the 
lapse in appropriations in January 2019.)

Regulatory Analysis and Notices

Administrative Procedure Act

    The Department of State is publishing this rule using the ``good 
cause'' exception to the Administrative Procedure Act (5 U.S.C. 
553(b)), as the Department has determined that public comment on this 
rulemaking would be impractical, unnecessary, or contrary to the public 
interest. This rulemaking is mandatory and entirely without agency 
discretion; it implements Public Law 114-74. See 5 U.S.C. 553(d)(3).

Regulatory Flexibility Act

    Because this rulemaking is exempt from 5 U.S.C. 553, a Regulatory 
Flexibility Analysis is not required.

Unfunded Mandates Reform Act of 1995

    This rule does not involve a mandate that will 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 year and it 
will not significantly or uniquely affect small governments. Therefore, 
no actions were deemed necessary under the provisions of the Unfunded 
Mandates Reform Act of 1995.

Small Business Regulatory Enforcement Fairness Act of 1996

    This rule is not a major rule within the meaning of the Small 
Business Regulatory Enforcement Fairness Act of 1996.

Executive Orders 12372 and 13132

    This amendment will not have substantial direct effects on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with Executive 
Order 13132, it is determined that this amendment does not have 
sufficient federalism implications to require consultations or warrant 
the preparation of a federalism summary impact statement.

Executive Orders 12866, 13563, and 13771

    The Department believes that benefits of the rulemaking outweigh 
any costs, and there are no feasible alternatives to this rulemaking. 
It is the Department's position that this rulemaking is not an 
economically significant rule under the criteria of Executive Order 
12866, and is

[[Page 9959]]

consistent with the provisions of Executive Order 13563. This rule is 
not an E.O. 13771 regulatory action because this rule is not 
significant under E.O. 12866.

Executive Order 12988

    The Department of State has reviewed the proposed amendment in 
light of Executive Order 12988 to eliminate ambiguity, minimize 
litigation, establish clear legal standards, and reduce burden.

Executive Order 13175

    The Department of State has determined that this rulemaking will 
not have tribal implications, will not impose substantial direct 
compliance costs on Indian tribal governments, and will not preempt 
tribal law. Accordingly, Executive Order 13175 does not apply to this 
rulemaking.

Paperwork Reduction Act

    This rulemaking does not impose or revise any information 
collections subject to 44 U.S.C. chapter 35.

List of Subjects

22 CFR Part 35

    Administrative practice and procedure, Claims, Fraud, Penalties.

22 CFR Part 103

    Administrative practice and procedure, Chemicals, Classified 
information, Foreign relations, Freedom of information, International 
organization, Investigations, Penalties, Reporting and recordkeeping 
requirements.

22 CFR Part 127

    Arms and munitions, Exports.

22 CFR Part 138

    Government contracts, Grant programs, Loan programs, Lobbying, 
Penalties, Reporting and recordkeeping requirements.

    For the reasons set forth above, 22 CFR parts 35, 103, 127, and 138 
are amended as follows:

PART 35--PROGRAM FRAUD CIVIL REMEDIES

0
1. The authority citation for part 35 continues to read as follows:

    Authority: 22 U.S.C. 2651a; 31 U.S.C. 3801 et seq.; Pub. L. 114-
74, 129 Stat. 584.


Sec.  35.3  [Amended]

0
2. In Sec.  35.3:
0
a. Remove ``$11,181'' and add in its place ``$11,463'', wherever it 
occurs.
0
b. In paragraph (f), remove ``$335,443'' and add in its place 
``$343,903''.

PART 103--REGULATIONS FOR IMPLEMENTATION OF THE CHEMICAL WEAPONS 
CONVENTION AND THE CHEMICAL WEAPONS CONVENTION IMPLEMENTATION ACT 
OF 1998 ON THE TAKING OF SAMPLES AND ON ENFORCEMENT OF REQUIREMENTS 
CONCERNING RECORDKEEPING AND INSPECTIONS

0
3. The authority citation for part 103 continues to read as follows:

    Authority: 22 U.S.C. 2651a; 22 U.S.C. 6701 et seq.; Pub. L. 114-
74, 129 Stat. 584.


Sec.  103.6  [Amended]

0
4. Amend Sec.  103.6 by removing ``$37,601'' and adding in its place 
``$38,549'' in paragraph (a)(1) and removing ``$7,520'' and adding in 
its place ``$7,710'' in paragraph (a)(2).

PART 127--VIOLATIONS AND PENALTIES

0
5. The authority citation for part 127 continues to read as follows:

    Authority:  Sections 2, 38, and 42, Pub. L. 90-629, 90 Stat. 744 
(22 U.S.C. 2752, 2778, 2791); 22 U.S.C. 401; 22 U.S.C. 2651a; 22 
U.S.C. 2779a; 22 U.S.C. 2780; E.O. 13637, 78 FR 16129; Pub. L. 114-
74, 129 Stat. 584.


Sec.  127.10  [Amended]

0
6. Section 127.10 is amended as follows:
0
a. In paragraph (a)(1)(i), remove ``$1,134,602'' and add in its place 
``$1,163,217'';
0
b. In paragraph (a)(1)(ii), remove ``$824,959'' and add in its place 
``$845,764''; and
0
c. In paragraph (a)(1)(iii), remove ``$981,935'' and add in its place 
``$1,006,699''.

PART 138--RESTRICTIONS ON LOBBYING

0
7. The authority citation for part 138 continues to read as follows:

    Authority: 22 U.S.C. 2651a; 31 U.S.C. 1352; Pub. L. 114-74, 129 
Stat. 584.


Sec.  138.400  [Amended]

0
8. In Sec.  138.400:
0
a. Remove ``$19,639'' and ``$196,387'' and add in their place 
``$20,134'' and ``$201,340'', respectively, wherever they occur.
0
b. In paragraph (e), remove ``$19,322'' and add in its place 
``$19,809''.

    Dated: February 27, 2019.
Alicia Frechette,
Executive Director, Office of the Legal Adviser and Bureau of 
Legislative Affairs, Department of State.
[FR Doc. 2019-05158 Filed 3-18-19; 8:45 am]
BILLING CODE 4710-10-P

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.